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

Use exact EPA vehicle configurations and your own mileage, driving mix, and local energy prices to compare fuel or electricity costs. Then weigh those savings against the car’s other ownership costs.
From TheFinanceBase Team4 min to read

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To choose a car that uses less fuel or energy, first narrow your options to vehicles that fit your space, budget, and driving needs. Then compare the exact model year and configuration using EPA efficiency and cost figures, adjusted for your annual mileage, driving mix, and local energy prices. Those figures estimate fuel or electricity expense—not total ownership cost.

Start with the car you actually need

Set practical limits before comparing efficiency: passenger and cargo space, body style, budget, and whether you are shopping new or used. Compare efficiency among vehicles that meet those requirements. A lower fuel bill does not make a car a good financial choice if it does not suit your needs or its purchase and other ownership costs are higher.

Compare the exact vehicle configuration

Fuel economy can vary by model year, engine, and transmission, even within the same model name. Use the EPA’s fuel economy label guidance and comparison tools to find the precise year, make, model, engine, and transmission you are considering.

Review combined fuel economy alongside the estimated annual fuel cost and five-year fuel-cost comparison. The label’s annual estimate assumes 15,000 miles of driving per year; it is a standard for comparison, not a prediction of your own mileage or bill. Its projected fuel price may also differ from what you pay.

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Personalize the estimated fuel or energy cost

Use your expected annual mileage, approximate city/highway mix, and current local fuel or electricity prices to judge what a vehicle may cost you to operate. If you drive substantially more or less than 15,000 miles a year, the label’s annual cost is not your personal estimate. Plug-in vehicles also require an electricity-use estimate based on how and where you charge.

When comparing candidates, focus on the likely annual expense under the same assumptions—not just the label’s standardized dollar amount. A consistent mileage, driving-mix, and price basis makes the comparison more useful.

Why a few more MPG may save less than you expect

MPG is not a linear measure of fuel saved: the same increase in MPG does not save the same amount of gas at every starting point. In an EPA label explanation, improving from 10 to 15 MPG saves about 33 gallons over 1,000 miles, while improving from 30 to 35 MPG saves about 5 gallons over 1,000 miles. These are illustrative examples, not comparisons of current vehicles.

For an expense-focused comparison, the label’s fuel-consumption measure—fuel used over a given distance—can make differences easier to interpret than MPG alone. The EPA explains that expressing efficiency as consumption, such as gallons per mile or per 100 miles, can be more meaningful than expressing it as miles per gallon. See its explanation of the plug-in hybrid label.

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Compare hybrids, plug-in hybrids, and EVs using the right measures

Conventional hybrids

Compare a conventional hybrid’s EPA fuel-economy figures and estimated fuel costs with those of other vehicles that fit your needs. Use the same mileage and driving assumptions for each candidate; a hybrid’s label figures do not establish whether it will cost less overall once purchase price and other ownership expenses are included.

Plug-in hybrid electric vehicles

Plug-in hybrid electric vehicles (PHEVs) have both electric-mode and gasoline-mode measures. EPA labels also show electricity use and MPGe, which expresses energy efficiency in a gasoline-equivalent measure. Consider whether you can charge regularly and whether your typical trips allow substantial electric driving. Without charging, the electric-mode estimate may not describe your routine, and MPGe is not an electricity bill estimate: use your local electricity rate and realistic charging and driving patterns to estimate that expense.

Electric vehicles

For an electric vehicle (EV), compare electricity use and estimated energy cost as well as the range estimate. EPA describes range figures as comparison guidelines; cold weather, high speeds, and accessory use can reduce actual range. See the agency’s EV and plug-in hybrid guidance for the measures and operating caveats.

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How to evaluate a used car’s fuel economy

Look up the EPA rating for the used car’s precise model year and version, and treat it as a baseline rather than a guarantee for the vehicle in front of you. EPA says that, with proper maintenance, fuel economy changes very little over a typical 15-year life and that the original estimate remains the best indicator of average gas mileage. Actual results can differ with condition, maintenance, driving style, weather, road conditions, load, air conditioning, and other factors.

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Check the car’s condition and maintenance history as well as its rating. A label cannot tell you whether a particular used vehicle has been maintained properly or how it will perform on your routes. EPA’s label guidance explains how to use fuel-economy information for used vehicles.

Fuel savings are only one part of running costs

A car with the lowest estimated fuel or electricity expense is not necessarily the car with the lowest total cost of ownership. Before deciding, compare purchase price and financing, insurance, expected maintenance and repair costs, depreciation or resale value, and—where relevant—access to charging. EPA fuel-economy information supports the fuel and energy comparison, but it does not establish those other costs or identify an overall cheapest vehicle.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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