Buying a new vehicle is a major investment. You want to get the most for your money and want your car to last as long as possible. When making your purchase decision, you'll consider factors like size, make, model, age, and features.
Another consideration that can affect your wallet is the vehicle's transmission. Many cars come in two options: manual or automatic. If you're comfortable driving either one, your decision may come down to your budget. So, which type is more affordable? And how do insurance costs between manual vs. automatic cars vary? Let's take a look.
What are the initial purchase price differences between manual and automatic cars?
First things first — what is the difference between manual and automatic vehicles?
Manual transmission
A manual car uses a standard transmission, typically with up to eight gears. To operate the car and adjust its speed, the driver must manually shift the gears using a gearshift and a clutch. Manual cars have simpler transmissions, and that's reflected in their cost. Since they don't require as many complicated parts or extensive machinery, manufacturers can offer them at lower prices.
However, fewer younger people know how to drive manual cars in the U.S. than in prior decades, and manufacturers know that. As a result, you may find fewer manual options on the dealership lot, especially for family-friendly sedans, SUVs, and minivans.
Automatic transmission
Cars with automatic transmissions don't require drivers to manually adjust gears while driving. Instead, the process occurs automatically using the car's automated gearbox. Automatic cars use more technologically advanced parts, which come at an extra cost. That's why you'll usually find automatic vehicles to be more expensive than their manual counterparts, regardless of whether you buy a new or used one.
Which type of car typically offers better fuel efficiency?
In the past, manual cars were much more fuel efficient than automatics, sometimes by many miles per gallon. However, that started to change sometime in the 2010s. Automatic cars manufactured after 2018 generally have just as good fuel efficiency as manual vehicles of the same make and model.
However, if you're shopping for a used vehicle over five or six years old, you may find that manual cars get better gas mileage. While the difference may be negligible, it could add up to $100 or more in annual fuel cost savings.
How do maintenance costs compare between manual and automatic vehicles?
Manual vehicles require more frequent maintenance than automatic cars. You'll be on the hook for frequent fluid changes and may need to replace more parts the longer you own the vehicle. However, when automatic cars experience a transmission issue, it can be a major expense. Here's how the costs break down.
Transmission fluid
Most manual cars require transmission fluid changes every 15,000 miles, or about once per year. You can combine a transmission fluid change with an oil change at your preferred service shop to save time. Failing to change the transmission fluid regularly will allow road buildup, sludge, and dirt to accumulate, which may lead to machinery failure and shorten your transmission's lifespan.
Automatic vehicles also use transmission fluid, but most manufacturers use a type known as "lifetime fluid." As the name implies, lifetime transmission fluid is meant to last as long as your transmission does. That means you won't need to regularly visit the auto maintenance shop for a refresh. However, most mechanics recommend flushing out transmission fluid every 70,000 to 90,000 miles to keep things running smoothly.
Machinery
The machinery of a manual transmission is much simpler than an automatic. It consists of a few gears, a clutch pedal, a stick shift, and a few other components. So, if your manual transmission breaks down, it won't take a mechanical wizard to fix it. As long as you keep up with transmission fluid changes and other routine maintenance, you probably won't encounter too many problems. If you need to replace a manual transmission entirely, it may run between $1,500 and $3,000, depending on the make and model of your vehicle.
Automatic transmissions are much more complex. They use multiple parts, some of which may be unique to the manufacturer. If the transmission fails, you'll need to find a mechanic who understands the complexity of your vehicle's transmission system and how to fix it. You will also need to find the right parts, which may be difficult if the car is older. On average, repairing or replacing an automatic transmission can cost as much as $4,000.
Are there differences in insurance premiums for manual vs. automatic vehicles?
Auto insurance pricing for manual and automatic cars isn't drastically different. That's because many factors go into your insurance premium costs, including your age, driving history, where you live, and the extent of your coverage. The type of car you drive, and whether it has an automatic or manual transmission, is just one small factor in an insurer's premium calculation.
However, since manual cars generally cost less to repair, you may see a negligible reduction in your insurance cost. It probably won't amount to much, though. Since the cost differences in insuring manual vs. automatic vehicles are minimal, the expense shouldn't weigh too heavily in your vehicle purchase decision.
“ Auto insurance pricing for manual and automatic cars isn't drastically different. ”
What are the long-term financial considerations for choosing manual versus automatic?
Manual vehicles don't contain as many complex parts as automatics do. That makes repairing them much cheaper, especially if you need to replace the transmission. Changing the transmission fluid of a manual vehicle is also less costly than it is for an automatic. However, your driving habits can significantly affect how well a manual performs over the long term and whether it will require expensive repairs. If you're uncomfortable driving a stick shift and constantly grind the gears or wear out the clutch, you'll find the car in the repair shop more often than you'd like.
Drivers who don't know how to drive a manual and don't have the time to learn will likely find an automatic vehicle the better option. While there may be higher upfront costs, and you'll pay more to replace or repair the transmission, you won't need to worry about regularly changing the transmission fluid or wearing out a clutch. Automatics are easier to drive, and since there's little difference in fuel efficiency or insurance expenses, you're not likely to see much of a cost difference
Frequently Asked Questions
Is it easier to learn to drive manual or automatic cars?
Automatic cars are less complicated to learn since you won't need to manually shift gears or manipulate a clutch. They're also less mentally and physically taxing to operate, which can be helpful when traveling with passengers or driving in bad weather or hilly areas.
Which type of car has better resale value: manual or automatic?
It depends on the make and model of the vehicle. A manual transmission may increase the resale value of a sporty or performance-type car. However, buyers seeking a family-oriented, day-to-day vehicle will likely prefer an automatic transmission.