A recent study by AAA reveals that the cost of owning and operating a new vehicle in 2024 has risen significantly, averaging $12,297 annually or $1,024.71 monthly. This marks a $115 increase from the previous year, primarily due to rising depreciation and finance charges.
- Overall Costs:
- Annual average: $12,297
- Monthly average: $1,024.71
- Increase of $115 from 2023
- Major Cost Factors:
- Depreciation: Largest expense, averaging $4,680 annually
- Finance charges: $1,332 annually, up 6% from last year
- Average MSRP: $38,883, a 0.7% increase from 2023
- Vehicle Categories:
- Half-Ton Pickup: Highest overall driving costs at $1.10/mile
- Small Sedan: Least expensive at 59.24¢/mile
- Electric Vehicles: Highest depreciation but lowest fuel and maintenance costs
- EV and Hybrid Insights:
- EVs: Second-highest total ownership costs due to high depreciation and purchase prices
- Hybrids: Second-lowest total ownership costs, benefiting from fuel efficiency and low maintenance
- Cost Breakdown (based on 15,000 miles/year):
- Depreciation: $4,680/year
- Finance: $1,332/year
- Fuel: 14.90¢/mile
- Insurance: $1,715/year
- License, Registration & Taxes: $815/year
- Maintenance, Repair & Tires: 10.13¢/mile
As vehicle ownership costs continue to rise, consumers are advised to consider all aspects of car ownership beyond the initial purchase price. The increasing popularity of electric and hybrid vehicles, despite higher upfront costs, reflects a growing interest in long-term savings on fuel and maintenance.
