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How to Choose a Fuel-Efficient Car for Lower Running Costs

Use EPA ratings as a starting point, then compare exact vehicle versions with your mileage, driving mix and local energy prices to estimate fuel or electricity costs.
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Choose the most fuel-efficient car that still fits your space, budget and driving needs, then compare its expected energy cost using your mileage and local fuel or electricity prices. EPA figures make vehicles easier to compare, but they are standardized estimates—not a promise of what you will spend, and not a measure of total ownership cost.

Start with cars that fit your needs

Before comparing efficiency, narrow the field to vehicles that meet your practical requirements: passenger and cargo space, body style, budget, and whether you are shopping new or used. Compare like with like where possible. A small car and a larger SUV may serve different needs, so the most useful comparison is among vehicles you would genuinely consider.

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For each candidate, identify the exact model year and configuration, including engine and transmission. Different versions of the same model can have different EPA ratings. Use the EPA fuel-economy label guidance and FuelEconomy.gov tools to find and compare the matching year, make, model and version.

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Compare fuel cost using your own driving

Look at combined efficiency, annual fuel cost and the five-year fuel-cost comparison on the EPA label. The annual estimate assumes 15,000 miles of driving per year; its fuel or energy price may also differ from what you pay. Treat those numbers as a common baseline for comparing vehicles, not a forecast tailored to you.

Make the comparison more relevant by using your expected annual mileage, approximate city/highway mix and current local gasoline or electricity prices. If you drive substantially more or fewer than 15,000 miles, the label’s annual cost will not represent your likely expense. The EPA label guide explains the label’s assumptions and comparison features.

Why a small MPG increase may save less than you expect

MPG is not a linear measure of fuel saved: an equal increase in MPG saves different amounts depending on the starting efficiency. In its label explanation, EPA illustrates that over 1,000 miles, improving from 10 to 15 MPG saves about 33 gallons, while improving from 30 to 35 MPG saves about 5 gallons. These are EPA examples, not comparisons of current car models.

When available, compare fuel consumption per distance as well as MPG. Consumption—such as gallons per 100 miles—shows more directly how much fuel a vehicle uses to cover a set distance. EPA notes that consumption can be more meaningful than MPG for understanding the difference between vehicles. See its explanation of the plug-in hybrid label.

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Choose the right measure for a hybrid, plug-in hybrid or EV

Conventional hybrids

Compare a conventional hybrid with other candidates using the EPA fuel-economy and cost figures for its exact configuration. Your results will depend on how and where you drive, so use a city/highway mix that resembles your own rather than assuming the label will match every trip.

Plug-in hybrids

A plug-in hybrid has separate measures for electric and gasoline operation, as well as electricity use and MPGe. Consider whether you can charge regularly and whether your usual trips allow substantial electric-mode driving. Without regular charging, the vehicle may spend more time using gasoline than your expectations assume. For a realistic comparison, account for your electric rate as well as gasoline prices and driving pattern. EPA describes these measures and label assumptions in its PHEV label guide.

Battery-electric vehicles

Use the EPA electricity-use and range figures as comparison guides, not guarantees for every trip. Cold weather, high speeds and accessory use can reduce an EV’s range. To estimate energy expense, apply your local electricity rate to realistic driving and charging needs; MPGe alone is not an electricity bill estimate. See EPA’s overview of electric and plug-in hybrid vehicle measures.

How to compare a used car

Find the original EPA rating for the used car’s exact model year and version, then use it as a baseline rather than assuming the rating has become meaningless with age. EPA says that with proper maintenance, fuel economy changes very little over a typical 15-year vehicle life and that the original estimate remains the best indicator of average gas mileage. Actual fuel use can still vary with the car’s condition, maintenance, driving style, weather, road conditions, load and air-conditioning use. Check maintenance history and condition alongside the rating. The EPA label guidance covers using ratings for older vehicles.

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Fuel cost is only one part of running cost

A lower fuel or electricity bill does not by itself establish that a car is cheaper to own. A full comparison also needs purchase price and financing, insurance, maintenance and repair costs, depreciation or resale value, and—for a plug-in—the practicality and cost of charging. Those figures are not established by EPA fuel-economy labels, so evaluate them separately before deciding which candidate costs less overall.

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