AAA Study: New Vehicle Ownership Is Up To $12,863 Per Year

The price on the window sticker is only the beginning. According to AAA’s 2026 Your Driving Costs study, the average new vehicle now costs $12,863 a year to own and operate. That works out to $1,071.92 per month, $35.24 every day or nearly 86 cents for every mile driven, based on 15,000 miles annually.

AAA’s calculation includes expenses buyers sometimes overlook when deciding how much vehicle they can afford: depreciation, financing, insurance, fuel, maintenance, repairs, tires, license fees, registration and taxes. The study examined 34 popular models in seven vehicle categories and estimated costs over five years and 75,000 miles.

The sales-weighted average manufacturer’s suggested retail price of the vehicles studied was $39,376. However, depreciation—not gasoline—was the largest ownership expense. AAA calculated an average depreciation loss of $4,422 per year. Insurance averaged another $2,098 annually, while finance charges averaged $1,184. License, registration and taxes added $802 per year.

Fuel averaged 17.3 cents per mile, while maintenance, repairs and tires added another 11.7 cents. At 15,000 miles a year, those two operating expenses total approximately $4,356. AAA’s fuel calculation used a 12-month average gasoline price of $4.152 per gallon through May 2026. Home electricity for EV charging was calculated at 18 cents per kilowatt-hour.

ANNUAL COST BY VEHICLE TYPE  *Source: AAA.

The enormous difference between vehicle categories deserves attention. A small sedan costs an estimated $9,259 annually, while a half-ton pickup costs $16,449—a difference of $7,190 every year. Over five years, that gap grows to nearly $36,000.

That does not mean nobody should buy a truck or larger SUV. Some people truly need the passenger room, cargo capacity or towing ability. But buyers should honestly evaluate those needs. Using a full-size pickup as a commuter because it might tow something someday can be an extremely expensive form of preparedness.

For the first time, AAA incorporated selected electric and hybrid vehicles into several of its mainstream category comparisons. EVs delivered by far the lowest energy costs, with charging expenses 66% to 70% below the fuel costs of comparable gasoline vehicles. However, their higher depreciation, finance charges, taxes and fees frequently overwhelmed the energy savings.

ANNUAL COST BY POWERTRAIN **Source: AAA

Hybrids produced the most consistent financial results. They cost less annually than comparable gasoline vehicles in all four categories AAA examined. The differences were not always dramatic, but hybrids combined lower fuel consumption with fewer of the depreciation and purchase-price penalties found among some EVs.

AAA reported that an electric medium sedan cost $13,662 annually, compared with $10,582 for a gasoline model and $10,204 for a hybrid. Although the EV’s annual charging cost was only $712.50, its depreciation averaged $6,786—more than twice the $3,330 calculated for the gasoline sedan. In this example, saving roughly $1,500 a year on energy did not compensate for losing an additional $3,456 annually to depreciation.

There is an important caution when looking at the headline number. AAA estimated last year’s ownership cost at $11,577, but it specifically warns that methodology changes mean the 2025 and 2026 totals are not directly comparable. Therefore, it would be misleading to describe the difference as a simple 11% year-over-year increase.

The takeaway is simple: Never judge affordability by the monthly payment alone. Before buying, calculate insurance, fuel, maintenance and registration—and pay particular attention to depreciation. A longer loan may make the payment look friendlier, but it does not make the vehicle cheaper.

The vehicle that best fits your actual needs is usually the smartest financial choice. Buying more vehicle than necessary can quietly consume thousands of dollars every year, long after the excitement of that new-car smell has disappeared.