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AAA: New Vehicle Ownership Costs Top $12,000 Annually 

New research examines EV and gas-powered vehicle cost trade-offs

WALNUT CREEK, Calif. (September 15, 2026) – Drivers will be paying more than $12,000 a year for new vehicle ownership costs, according to a new analysis by AAA. This year’s analysis finds that the average annual cost to own and operate a new vehicle is $12,863 or $1,071.92 a month. The associated costs can be attributed to rising fuel prices, vehicle depreciation and financing charges. AAA’s Your Driving Costs analysis has helped drivers with understanding the full cost of vehicle ownership for 75 years.  

“By looking at EVs, hybrids and traditional gas-powered vehicles within the same categories, consumers can better understand how total ownership costs vary by powertrain,” said David Caltabiano, spokesperson for AAA MWG. “Looking at the full ownership picture—including depreciation and other expenses—can help consumers better understand the total cost of each option.” 

AAA Breaks Down Key Costs 

  • Fuel Prices – At the time of the study, gas prices averaged $4.15 per gallon, while EV prices averaged 18 cents per kilowatt hour. Gas prices are up 31.8% compared to 2025, while electricity prices rose only 7.8%. 
  • Depreciation — Vehicles lost a weighted average of $4,422 per year from price of purchase to resale. Vehicle type and purchase price both have a significant effect on depreciation for EV shoppers with EV medium sedans depreciating twice as much as gas-powered models.
  • Car Prices – The sales-weighted average MSRP of new vehicles this year is $39,376. While MSRPs increased slightly on average, incentives, demand and rebates can affect what consumers ultimately pay. 

EV and Hybrid Comparison Takeaways 

Your Driving Cost analysis is giving shoppers a more practical view of how ownership costs compare with gas-powered vehicles and EVs. 

  • Gas-powered vehicles: Overall, gas models offered savings compared to EVs and hybrids in cost categories affected by purchase price, like finance charges, taxes and fees, and depreciation. 
  • Electric vehicles: EVs delivered the lowest fuel costs, with charging costs for EVs about 66%–70% lower than fuel costs for traditional gas vehicles across the categories studied. However, those savings were often outweighed by higher depreciation, fees and finance costs.
  • Hybrids: Hybrids were the most consistently lower-cost alternative to gas in the comparison categories. They combined meaningful fuel savings with smaller ownership-cost tradeoffs, costing less annually than gas-powered models in medium sedans, compact SUVs, medium SUVs and pickup trucks. 

Car Buying Advice  

The analysis found that vehicle type can increase your purchase price. Larger models and high-priced EVs carry higher overall ownership costs, even if fuel costs are lower. Before buying, consumers should:

  • Create a monthly and annual budget that includes ownership and operating costs before purchasing. 
  • Keep the vehicle price, finance rate, and trade-in value as separate negotiations. 
  • Get pre-approved by a financial institution before discussing financing with the dealer. 

Additional AAA Support: 

Your Driving Costs calculator helps shoppers compare ownership costs by vehicle category, powertrain, location and driving habits. AAA also offers additional tools to support vehicle research, shopping and repair planning: 

  • AAA Car Guide: Annual guide that rates vehicles with the latest automotive technology. 

About AAA Mountain West Group

For over a century, AAA Mountain West Group (MWG) has served as a mission-driven, member-centric organization. Guided by its mission of People Helping People and powered by 5,400 dedicated team members, MWG delivers exceptional roadside assistance, auto repair, travel planning, financial and insurance services, home security, and exclusive member discounts. With a vision focused on creating Members for Life, MWG guides Members through every stage of their journey, serving more than 6.9 million people throughout Alaska, Arizona, Nevada, Northern California, Montana, Utah, and Wyoming. Recognized by Forbes as one of the Most Trusted Companies in America, AAA has grown into one of the largest and most trusted membership organizations in North America. To learn more about AAA MWG, visit mwg.aaa.com.

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