RACQ Annual Running Costs Survey: Downsize To Save

Fuel prices aren't getting any lower, and it's the same message every year: if you want to save on running costs, downsizing could be the key.

It's not for everyone: you might not squeeze three towering teenagers into the back of an Alto, but according to RACQ's 2012 Vehicle Running Costs Survey, the savings suggest it's worth a shot.

Combining a car's list price with other considerations - including rego and insurance, depreciation, loan interest, fuel, tyres, servicing and other on-road costs - the annual survey ranks the running costs of popular models available in Australia.

RACQ's 2012 survey pegs the light Alto as the most affordable car over the course of a year, with the GL 1.0 litre five-speed manual five-door pegged at around $6068 per year.

The most affordable small car is Kia's Cerato S 2.0 litre six-speed automatic hatch, costing around $8540 per year.

Predictably, running costs grow with the size of the car, with the Hyundai i45 the cheapest midsizer at around $10,583 per year, and the large LPG-powered Falcon EcoLPi at around $12,085 per year.

And if you thought an electric vehicle would be the answer to saving thousands (and not just the environment), consider Mitsubishi's pioneering i-MiEV, the first EV to feature in the list, at around $12,816 per year.

The i-MiEV's high running cost is based largely on its $48,000 price tag and correspondingly high depreciation costs.

"The cheapest of the six ‘green’ technology vehicles in our survey was the new Toyota Prius c Hybrid," RACQ's Steve Spalding said.

"Its annual cost of $8309.32 is $1784.83 cheaper than the nearest rival, the Honda Insight VTi Hybrid," he said. "Its $23,990 price was also low enough to contain its depreciation and interest costs."