What the study found
- Average annual cost
- $12,863
- Average monthly cost
- $1,071.92
- 2025 comparison
- $11,577 a year, $964.78 a month
- Largest single cost
- Depreciation, $4,422 a year on a weighted average
- Study scope
- Seven categories, 34 top-selling models, five years and 75,000 miles
AAA estimates that owning and operating a new vehicle averages $12,863 annually, equivalent to $1,071.92 monthly (opens in a new tab). Its estimate for 2025 was $11,577 annually, or $964.78 monthly. AAA cautions that changes to its methodology prevent a direct comparison between years.
AAA identifies depreciation as the largest expense, averaging $4,422 annually per vehicle after weighting. It attributes rising costs to fuel, depreciation and financing. Its analysis includes 34 top-selling models across seven categories and estimates costs for 75,000 miles over five years.
At the time of the study, regular-grade gasoline averaged $4.152 a gallon, up 31.8% from 2025, while home EV charging electricity averaged 18.0 cents per kilowatt hour, up 7.8%. AAA says the sales-weighted average new vehicle MSRP was $39,376, and that incentives, demand and rebates affect what buyers actually pay.
How powertrains compare
AAA now includes selected EVs and hybrids in categories previously limited to gasoline models. Within the categories examined, AAA found EV charging expenses roughly 66% to 70% below gasoline fueling expenses. It says greater depreciation, fees and financing expenses often exceeded those savings.
AAA found roughly double the depreciation for medium electric sedans versus gasoline counterparts, with annual ownership expenses 29.1% higher. A gas medium sedan runs $10,582 a year, $3,080 less than a comparable electric sedan. Hybrids came out as the most consistently lower-cost alternative, beating gas models in medium sedans, compact SUVs, medium SUVs and pickups.
AAA puts the annual premium for half-ton pickups over small sedans at $7,191 on average. AAA also notes that fuel economy alone did not determine which vehicle was most affordable. The EV and hybrid comparison covered four categories, a smaller set than the full study, and AAA says those results are not directly comparable to the broader numbers.
What AAA suggests before you buy
AAA advises buyers to work out monthly and annual ownership costs before committing to a purchase, and to negotiate the price, finance rate and trade-in separately rather than as one deal. It also recommends getting pre-approved through a bank, credit union or AAA.
AAA's Your Driving Costs calculator lets shoppers compare expenses using their location, driving habits, vehicle category and powertrain.