Owning a new car has never exactly been cheap, and with the average new vehicle now carrying a sticker price of almost $40-thousand, AAA says the costs keep piling up long after you leave the dealership. Its latest Your Driving Costs analysis puts the average annual cost of owning and operating a new vehicle at $12,863, or about $1,072 a month, once expenses like fuel, maintenance, insurance, depreciation, taxes, and financing are included. That figure is up over 11% from last year, though AAA notes that changes in methodology make it an imperfect year-to-year comparison.
Here are some of the biggest takeaways from the analysis:
- Depreciation is still the single largest ownership cost, averaging $4,422 a year.
- Gas averaged $4.15 a gallon during the study, up nearly 32% from last year, while home EV charging costs rose less sharply.
- EVs had by far the lowest fuel costs, with charging running about 66% to 70% less than fueling comparable gas-powered vehicles, but those savings were often offset by higher depreciation, finance charges, taxes, and fees.
- Hybrids were the most consistently affordable option across the vehicle types AAA compared, costing less overall than gas models in medium sedans, compact SUVs, medium SUVs, and pickups.
- Among medium sedans driven 15-thousand miles a year, hybrids cost about $10,204 annually, gas models $10,582, and EVs $13,662.
- Vehicle type can make a huge difference. AAA says a half-ton pickup costs about $1.10 per mile to operate, 48 cents more than a small sedan, adding over $7-thousand a year.
- Pickups were the most expensive of the compared categories, with annual costs ranging from $16,117 for hybrids to $17,414 for EVs.
AAA says the big lesson is to consider more than the sticker price and fuel economy when shopping for a vehicle. A car that seems cheaper upfront can still cost more overall once other factors enter the picture, while choosing a smaller or more efficient vehicle generally means saving more over time.
Source: AAA