While the idea of buying a new car may sound exciting, it’s important to know that a new vehicle is going to cost you a lot more money than just the price on the sticker.
A new AAA report finds:
- The average annual cost of owning a new vehicle is $10,728, which comes out to $894.00 a month.
- That’s an increase from $9,666, or $805.50 per month last year.
- The number is based on a comparison of six categories - fuel, maintenance/repair/tire costs, insurance, license/registration/taxes, depreciation, and finance charges.
- The biggest chunk of that money comes from depreciation, a measure of how quickly a car loses value, which accounts for about a $3,656 loss per year.
- And the actual cost of a car could be even higher this year, since the study based fuel costs on the first five months of the year, when the average gas price was 17.99-cents a mile, or $3.99 a gallon, and prices went up considerably as of March.
- The cost of maintenance, repairs, and tires comes out to about 9.68 cents per mile, although that depends on the size of the vehicle.
- One way to save money on gas is to get an electric vehicle, with EV owners only spending about 4-cents a mile to charge their vehicle at home.
- That would save EV drivers almost $2,100 a year, assuming both an EV and a gas-powered vehicle goes 15,000 miles annually.
- EVs also have the lowest maintenance, repair, and tire costs, plus owners pay lower fees because of federal and state purchase incentives.
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