It’s no secret that cars are getting more expensive, but a recent study says the annual cost of new vehicle ownership is $9,666.
According to AAA, that equates to $805.50 per month and the biggest hit comes from depreciation which accounts for 40% of all ownership expenses.
As part of the study, the group looked at 45 top-selling, mid-priced models including the Chevrolet Colorado, Equinox and Silverado as well as the Toyota Camry and Corolla. They then calculated their fuel, maintenance/repair, insurance, license/registration/taxes, depreciation and finance costs. The latter was based on a five-year loan with 10 percent down at the national average interest rate, while depreciation was estimated after five years and 75,000 miles (120,701 km).
With that primer out of the way, lets jump into the numbers. The study found the average fuel cost is 10.72 cents per mile, but that number varies significantly depending on the type of vehicle. Full-size crew cab pickups were the most expensive at 15.81 cents per mile, while EVs cost just 3.66 cents per mile based on a rate of 13.1 cents per kilowatt hour.
When combined with maintenance costs, the average vehicle costs 20.28 cents per mile to operate and that adds up to $3,042 a year if you drive 15,000 miles (24,140 km) annually. That’s a decent chunk of change, but depreciation will cost owners an average of $3,900. This jumps to $5,362 for electric vehicles, while small sedans only lose $2,687 in value.
For consumers on a budget, small sedans are the obvious choice as they typically cost less to buy and have a total annual ownership cost of $7,230 at 15,000 miles (24,140 km) annually. That jumps to $9,366 for mid-sized sedans and $9,968 for mid-sized SUVs. Full-size trucks were the most expensive at $11,588 while their mid-size counterparts offered annual savings of $2,173.
