If You Own A Car, This Is Exactly Where Your Money Goes
The price tag on a new car window sticker is only a fraction of what buyers will ultimately pay over five years of ownership.
According to AAA’s freshly released 2026 Your Driving Costs study, the average cost to own and operate a new vehicle in the U.S. has reached $12,863 per year. That breaks down to $1,071.92 per month, $35.24 per day, or 85.75 cents per mile based on 15,000 miles driven annually.
The sales-weighted average MSRP of the 34 top-selling vehicles evaluated across seven segments sat at $39,376. But while high gas prices often dominate drivers' minds, depreciation remains the single largest financial hit to car owners by a wide margin.
Depreciation vs. Fuel: Where the Money Goes
Across all categories, depreciation accounts for a weighted average loss of $4,422 every year—representing more than a third of total annual vehicle expenses.
Full-coverage insurance averaged $2,098 annually, while finance charges added $1,184 per year. State licensing, registration, and taxes added another $802 annually.
On the operating side, fuel costs averaged 17.32 cents per mile, while routine maintenance, repairs, and tires contributed 11.73 cents per mile. Driven over 15,000 miles annually, combined operating expenses totaled $4,356 per year.
Vehicle Class Breakdown: Small Sedans vs. Half-Ton Trucks
The study illustrates a massive financial split depending on vehicle size. A small sedan costs an estimated $9,259 per year ($0.6173 per mile) to run at 15,000 miles annually. At the opposite end of the spectrum, a half-ton pickup truck costs $16,449 per year ($1.0966 per mile)—a staggering $7,190 annual difference.
Annual Costs by Vehicle Category (at 15,000 Miles/Year):
- Small Sedan: $9,259 per year | $0.6173 per mile
- Medium Sedan: $10,555 per year | $0.7037 per mile
- Subcompact SUV: $10,752 per year | $0.7168 per mile
- Compact SUV: $11,670 per year | $0.7780 per mile
- Medium SUV: $14,447 per year | $0.9632 per mile
- Midsize Pickup: $13,089 per year | $0.8726 per mile
- Half-Ton Pickup: $16,449 per year | $1.0966 per mile
For drivers who put in lower mileage (10,000 miles/year), the overall weighted cost per mile jumps to $1.0992 due to fixed ownership costs like insurance and financing. Conversely, high-mileage drivers (20,000 miles/year) spread out those fixed costs to bring the average down to 73.99 cents per mile.
Powertrain Face-Off: Gas vs. Hybrid vs. Electric
AAA also provided a deep-dive analysis comparing electric, hybrid, and traditional gas models across four core segments:
In every segment analyzed, hybrid vehicles emerged as the most cost-effective option. Hybrids delivered significantly lower fuel costs than gas vehicles while avoiding the steep depreciation rates and higher finance charges currently weighing down electric vehicles.
Compact SUV Comparison:
- Hybrid: $11,201 total annual cost ($0.747/mile) | $1,731 fuel | $3,845 depreciation
- Gas: $11,656 total annual cost ($0.777/mile) | $2,382 fuel | $3,568 depreciation
- Electric: $11,888 total annual cost ($0.793/mile) | $771 fuel | $5,298 depreciation
Pickup Truck Comparison:
- Hybrid: $16,117 total annual cost ($1.074/mile) | $3,153 fuel | $6,370 depreciation
- Gas: $16,626 total annual cost ($1.108/mile) | $3,598 fuel | $6,446 depreciation
- Electric: $17,414 total annual cost ($1.161/mile) | $1,222 fuel | $8,624 depreciation
While EVs cut fuel expenses by 66 to 70 percent compared to gas models, electric trucks lose $8,624 per year in depreciation alone—nearly $2,250 more than gas or hybrid pickups.
AAA notes that while individual results will vary based on charging access and regional fuel rates, hybrids currently strike the best financial balance between initial purchase cost, fuel efficiency, and long-term resale value.
This article was written using AI and was then edited and optimized by our editorial team.
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Owning a new car today is almost as much as owning a house where I live. And people suck it up and do it! I own 4 cars that are all paid off, 1 isn't running. My insurance bill for my cars, liability only, is $120 a month for the 4 (through AAA, thank you). I'm not interested in buying a new one and strapping myself to a $700-1,000 payment, $250 extra dollars for insurance, and depreciation. Kudos to those who can afford to pay the money for this luxury.
About 15 years ago I stopped buying new cars. My current rides are a 2013 Mercedes C300 4Matic and a 2016 Mercedes E350 4Matic. Both were purchased used with less than 40k miles. Original sticker on the C300 was $49k, for which I paid $18k. Original Sticker on the E350 was $64k for which I paid $25k. I do oil changes, brakes, and other routine maintenance myself, which saves a bundle. I live in a semi-rural area with little stop&go traffic, so the C300 delivers an average of 27.5 mpg "city" and 31.2 mpg highway. The E350 does 26 mpg/31mpg city/highway, still pretty good for a relatively large 300HP vehicle. Like Ty has mentioned, Kudos to those folks who traded-in these fine cars for something even more expensive, giving me the opportunity to enjoy my bargain basement luxury!