Midsize SUVs have long cemented their place in the automotive market as the go-to vehicle for families, outdoor enthusiasts, and individuals seeking that perfect blend of space, performance, and affordability. They strike a balance between offering ample room for passengers and cargo without the bulkiness of full-size SUVs or the compactness of smaller alternatives.
But what is the real cost of owning a midsize SUV? Spoiler alert—it’s more than just the price tag you see on the dealer’s lot. From financing and depreciation to maintenance and fuel, various hidden costs come into play that many buyers overlook.
This comprehensive guide aims to uncover the true cost of owning a midsize SUV. We’ll examine purchase price, long-term ownership expenses, and how these vehicles stack up against other vehicle types. Whether you’re a first-time SUV buyer, a family seeking practicality, or a budget-conscious consumer, this post will help you understand the financial landscape of midsize SUVs.
Understanding the Real Cost of Owning a Midsize SUV
The Purchase Price and Beyond
When browsing midsize SUVs, the manufacturer’s suggested retail price (MSRP) is often the first number that catches your eye. But in reality, this number is just the starting point.
Additional costs to consider:
- Destination Charges (Delivery Fees): These vary by manufacturer but typically add $1,000–$2,000 to your purchase price.
- Taxes and Registration Fees: These depend on your state’s tax percentage and registration requirements, ranging anywhere from $1,000 to $3,000.
- Dealer Add-Ons (like extended warranties, accessories, or paint protection): These can easily exceed $2,000 if you’re not careful.
Depreciation
Depreciation—the loss of your car’s value over time—is one of the most significant hidden costs. Midsize SUVs, on average, lose 15–20% of their value in the first year and approximately 50% within five years. While models like the Toyota Highlander retain value better than most, depreciation is unavoidable.
Financing and Interest Rates
Securing an auto loan means paying more than the sticker price. Factors like your credit score, loan term, and down payment heavily influence the overall cost. For example:
- A $40,000 midsize SUV financed for five years at a 6% interest rate will cost about $46,400.
Insurance Costs
Insurance rates for midsize SUVs vary based on the make, model, and even safety ratings:
- Vehicles like the Subaru Outback often have lower premiums due to their safety features.
- Conversely, SUVs with higher repair costs can fetch above-average premiums. Expect to pay $1,200–$1,800 annually.
The True Costs: What’s Included in the Total Ownership Experience?
Fuel Economy and Costs
Fuel can significantly impact the long-term cost of owning a midsize SUV. With rising gas prices, fuel-efficient options pay off in the long run.
Here’s how different categories compare:
- Gas-Powered SUVs (e.g., Honda Passport): Average mileage is 21-25 MPG, costing $1,500–$2,000 annually on fuel.
- Hybrid SUVs (e.g., Toyota Highlander Hybrid): Hybrid vehicles get up to 35 MPG, reducing annual gas costs to $1,200.
- EVs (e.g., Kia EV6): Electric SUVs eliminate fuel costs, but charging costs will depend on local electricity rates.
Maintenance and Repairs
Maintenance costs can add up quickly. Here’s an idea of typical expenses for midsize SUVs:
- Routine Maintenance (oil changes, tire rotations): ~$100–$200 per visit.
- Unexpected Repairs (brakes, engine): Can range from $500 to $3,000 depending on the repair.
Pro Tip: Brands like Toyota and Subaru are known for reliability, reducing the likelihood of expensive repairs.
Warranties and Extended Coverage
Standard warranties often include 3 years/36,000 miles of coverage. Opting for extended warranties can add upfront costs but save money in the event of major repairs.
Taxes, Fees, and Registration
These “hidden” costs include title fees, registration, and local taxes. For example:
- A $35,000 SUV could carry $3,000 in taxes depending on your state.
Breakdown of the Prices of Popular Midsize SUVs
Toyota Highlander
Starting at $36,620, the Toyota Highlander offers a variety of trims, including the fuel-efficient hybrid option.
- Base Model (L) starts at $36,620.
- Hybrid XLE, perfect for families, starts at $43,220.
Ownership Costs:
- Insurance ranges from $1,300–$1,800 annually.
- Maintenance costs average $600/year.
Honda Passport
Priced starting at $41,100, the Passport’s rugged design makes it ideal for outdoorsy families.
- Offers ample room and performs well off-road.
Ownership Costs:
- Maintenance ranges from $500–$700/year.
- Insurance premiums average around $1,400.
Ford Edge
Ford’s Edge is known for its functionality and solid warranty coverage.
- Base SE Trim starts at $37,945.
- Titanium Trim offers luxurious add-ons at $47,345.
Ownership Costs:
- Maintenance adds $1,000 annually due to less robust reliability compared to Toyota.
- Insurance premiums range from $1,500–$1,900.
Chevrolet Traverse
Spacious and practical, this three-row SUV starts at $35,915 for its base LS model.
- Fully loaded High Country Trim reaches $53,000.
Ownership Costs:
- Relatively high depreciation (~50% in the first five years).
Subaru Outback
Starting at $28,895, the Subaru Outback combines adventure-ready technology and fuel efficiency.
- The Wilderness Trim offers off-road capabilities starting at $40,345.
Ownership Costs:
- Insurance premiums are among the lowest (~$1,200/year).
- Maintenance costs average $400 annually.
Comparing Costs with Other Vehicle Types
Midsize vs. Compact SUVs
Compact SUVs like the Toyota RAV4 are cheaper upfront (starting at $27,575), but midsize SUVs often provide a higher value for families needing more space.
Midsize vs. Full-Size SUVs
While full-size SUVs like the Chevy Tahoe offer greater towing capacity, they come with higher costs for fuel (~18 MPG) and maintenance.
Midsize SUVs vs. Sedans
Although midsize sedans are more affordable, SUVs deliver superior practicality with better storage space and all-weather capability.
How to Lower the True Cost of Owning a Midsize SUV
Leasing vs. Buying
Leasing often reduces monthly payments, but ownership costs (insurance, mileage overages) can add up.
Buying Used or Certified Pre-Owned
Opting for a CPO SUV mitigates depreciation costs while offering warranty coverage.
Maximizing Fuel Efficiency
Follow routine maintenance and drive conservatively to save on gas.
Choosing the Right Trim
Avoid unnecessary premium features and aim for mid-range trims to get the most value for your money.
Resale Value and Depreciation
Top Midsize SUVs with the Best Resale Value
Models like the Toyota Highlander and Subaru Outback retain their value far better than competitors. Their elevated reliability ensures better resale or trade-in opportunities.
Tips for Reselling Your SUV
- Keep it well-maintained and clean.
- Timing matters—selling after three years retains the most value.
Final Thoughts to Drive Smart Decisions
When buying a midsize SUV, understanding all costs is key—from MSRP to long-term expenses like fuel and depreciation. Prioritize research and compare ownership costs before choosing the right vehicle for your needs.
Thinking about your next SUV? Use online pricing tools and visit local dealerships to ensure you’re getting the best deal possible.
