Each year, AAA calculates the cost of owning and operating a car, and each year it goes up. This year, the study study shows that the annual cost to own and operate a new car is $12,297 or $1,025 monthly, up $115 from 2023. The main cost drivers are depreciation and finance charges.
Key Findings
- Depreciation: Cars lose an average of $4,680 per year.
- Car Prices: The average MSRP is $38,883, up 0.7% from last year.
- Finance Charges: Average annual charges rose 6% to $1,332.
EVs have high ownership costs due to depreciation and purchase prices but offer the lowest fuel and maintenance costs. Hybrids are more affordable, with low fuel and maintenance expenses.
AAA’s expanded study also compares ownership costs for EVs, hybrids, and gas-powered cars in popular categories.
Buying a new car can be exciting,” stated Greg Brannon, AAA’s director of automotive research. “But consumers should fully understand all the costs of owning and operating a new vehicle from purchase to resale.”
Tips for Car Buyers
- Budget for both ownership and operation costs.
- Negotiate the car price, finance rate, and trade-in value separately.
- Get pre-approved for a loan to secure the best interest rate.
- Explore various buying options, including AAA member discounts.