Auto Ownership Costs Down
Annual AAA study shows a mix of circumstances have eased pocketbook strain this year.

The study also compares the cost of owning and operating a gas-powered vehicle and an electric one. It found that fuel prices happen to be the deciding factor in current conditions.
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The cost of owning and operating a new vehicle, against a lot of odds, has actually fallen, according to AAA data analysis.
Due to a mix of reduced depreciation, lower gas prices and finance charges, and consumers gravitating to more affordable models, the average annual impact on the wallet has fallen about $720 to $11,577, or $965 a month.
It’s a bright spot for consumers amid an inflationary onslaught, from rising sticker prices and repair and maintenance costs to increasing insurance premiums.
AAA has now offered the auto cost analysis for 70 years. It says vehicle depreciation makes up the biggest portion of ownership cost. The autos it used to calculate this year’s cost numbers lose nearly $350 less value per year than last year, or a total of $4,334.
Meanwhile, average new-vehicle finance costs have fallen 15% to $1,131, fuel costs by about 13% to 13 cents per mile as average regular-grade gas prices fell about 39 cents per gallon to $3.15 while electricity prices for electric-vehicle charging rose by about 1 cent per kilowatt hour.
For the study, AAA tapped data from multiple sources on 45 mid-priced models, using standard criteria and basing its analysis on five years and 75,000 miles of ownership, or 15,000 miles of driving per year.
The study also compares the cost of owning and operating a gas-powered vehicle and an electric one. It found that fuel prices happen to be the deciding factor in current conditions.
Though EVs come with lower operating costs, including fuel and maintenance, they still have higher ownership costs, including depreciation, insurance, financing and fees. So this year’s gas price decline and electricity price uptick tipped the balance, making EVs the most expensive to own and operate, AAA calculated.
AAA added to the annual report a comparison of 11 gas, EV and hybrid models’ annual costs.
LEARN MORE: How Your Dealership Can Weather This Economic Uncertainty
Originally posted on Auto Dealer Today
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