You can add owning a vehicle to the seemingly never ending list of things that cost a small fortune to have anymore.
The average cost to own and operate a new vehicle in 2024 is $12,297, or $1,024.75 per month, according to AAA's Your Driving Costs report. That's $115 more than last year and a sharp increase from 2022, when the average yearly cost was only $10,728 or $894 monthly.
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Not surprisingly, AAA found that depreciation, the difference between the car's value upon purchase and when sold, and finance charges are the most significant factors pushing this year's average annual price tag. Cars in this year's report lose a staggering $4,680 in value per year and incur an average annual finance charge of $1,332, a 6% increase from the previous year.
"Buying a new car can be exciting," Greg Brannon, AAA's director of automotive research, said in a statement. "But consumers should fully understand all the costs of owning and operating a new vehicle from purchase to resale."
For its most recent analysis, AAA evaluated the five top-selling models in each of nine vehicle categories to calculate ownership costs across a number of areas, including depreciation, finance, fuel, insurance, maintenance/repair and tires, and license/registration/taxes. The study assumes a five-year ownership period, with the vehicle being driven 15,000 miles a year (or a total of 75,000 miles).
The analysis revealed that hybrid vehicles have the second lowest annual ownership after small sedans.
"Hybrids benefit from excellent fuel economy, low maintenance costs, depreciation, and insurance – making them an affordable option for car buyers," said Brannon.
The analysis also showed that the most expensive vehicle to own and operate annually is a half-ton pickup, which has the highest overall driving costs. The second most expensive is an electric vehicle, followed by a medium SUV and midsize pickup.
The average costs to own and operate 2024 vehicle models, from least to greatest:
• Small Sedan: $8,886 a year - $740.50 a month
• Hybrid Vehicle: $9,910 a year - $825.83 a month
• Subcompact SUV: $10,127 a year - $843.92 a month
• Medium Sedan: $10,557 a year - $879.75 a month
• Compact SUV: $10,656 a year - $888 a month
• Midsize Pickup: $12,366 a year - $1,030.50 a month
• Medium SUV: $12,576 a year - $1,048 a month
• Electric Vehicle: $12,704 a year - $1,058.66 a month
• Half-Ton Pickup: $16,453 a year - $1,371.08 a month
You can determine the driving costs of your vehicle by visiting the AAA's online Driving Cost Calculator. To get a personalized calculation, simply select your vehicle, desired state, annual mileage and driving ratio that represents your normal driving habits.
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