AAA estimates the average cost of owning and operating a new vehicle at $12,863 annually, or about $1,072 a month.
Depreciation remains the biggest expense, while lower charging costs do not always make electric vehicles cheaper overall.
Vehicle size and type can substantially affect ownership costs, making comparisons essential before buying.
The sticker price of a new car or truck has never been higher. But AAA suggests consumers should focus on another number as well — the cost of owning it. And that number is also rising.
AAA’s 2026 Your Driving Costs analysis puts average annual ownership and operating expenses at $12,863. The estimate includes depreciation, financing, insurance, fuel, maintenance, repairs, tires, taxes, and registration.
Last year’s estimate was $11,577, but AAA cautions that methodology changes prevent a direct year-over-year comparison. This year, the analysis incorporates selected electric and hybrid vehicles into categories previously limited to gasoline models.
The estimates cover five years and 75,000 miles of ownership. They represent average economic costs, including lost resale value, rather than simply the bills drivers pay each month.
Mounting costs
Depreciation averages $4,422 a year. Insurance adds $2,098, financing costs $1,184, and taxes and registration come out to $802. Fuel averages 17.3 cents per mile, with maintenance, repairs, and tires adding 11.7 cents. Actual expenses vary with location, driving habits, and other factors.
Fuel savings alone do not settle the choice between gasoline, electric, and hybrid vehicles. AAA found EV charging costs were approximately 66% to 70% lower than gasoline costs across the categories studied. However, higher depreciation, fees, and financing often outweighed those savings.
Gasoline-powered medium sedans, for example, cost $10,582 annual to own, $3,080 less than comparable electric models. Hybrids cost less than gasoline vehicles in all four comparison categories: medium sedans, compact SUVs, medium SUVs, and pickups.
Size matters
Vehicle size also matters. Small sedans averaged about 62 cents per mile, compared with $1.10 for half-ton pickups.
For buyers trying to control expenses, AAA recommends budgeting for total ownership costs, obtaining financing preapproval, and negotiating the vehicle price, interest rate, and trade-in value separately. Choosing a vehicle that meets actual transportation needs can also reduce long-term expenses.