AAA: Driving Cost Analysis Shows $719 Decline in Annual Ownership Expenses
New Vehicle Costs Drop to $11,577
WALNUT CREEK, Calif. (Sept. 16, 2025) – This year, AAA’s Your Driving Costs (YDC) analysis shows that the total cost of owning and operating a new vehicle is $11,577, or $964.78 per month, a $719 decline from 2024.
Factors contributing to this decline include depreciation, lower finance charges, reduced fuel prices, and a shift towards more affordable vehicle options. AAA advises potential buyers to consider these costs to choose the best vehicle type and model for their budget.
"It might be tempting to rush to the dealer for a new car when you notice a drop in ownership costs this year," said Doug Johnson, AAA Mountain West Group Spokesperson. "However, consumers should factor in all the expenses involved before making any commitments."
Depreciation, which is the difference between a car's purchase price and its resale value, is the most significant cost of vehicle ownership. This year, depreciation has decreased, with vehicles in the YDC study losing an average of $4,334 in value per year compared to $4,680 annually in 2024.
Categories driving lower costs this year include:
- Finance Charges - Estimated finance costs have decreased to $1,131 in 2025, down 15 percent compared to $1,332 in 2024. *Note: Sticker price decrease is partially due to new vehicles in YDC.
- Fuel Prices - The average fuel cost dropped to 13.00 cents per mile, a 12.8% decrease from last year, while regular grade gasoline for YDC vehicles averaged $3.15 per gallon, down from $3.53. Meanwhile, electricity prices for charging electric vehicles rose slightly to 16 cents per kilowatt hour, up from 15 cents in 2024.
The Right Vehicle – Your Budget
Choosing the vehicle that suits your needs is important, as it can lead to significant savings over time. Drivers should consider selecting a vehicle based on their actual transportation needs.
According to this year’s AAA EV survey, consumers are increasingly drawn to electric vehicles (EVs) for their gas savings and lower maintenance costs, with EVs having the second-lowest maintenance expenses among all vehicle categories. Hybrid options are also appealing, offering the lowest maintenance fees while sharing similar lower fuel cost benefits. Ultimately, whether opting for a pickup, a small sedan, or an EV, weighing these factors carefully to make a well-budgeted decision can lead to ownership savings.
Car Buying Advice
o Create a monthly or annual budget factoring ownership and operating costs before purchase.
o Keep each transaction and negotiation separate from the other – the cost of the car, the finance rate, and the trade-in value.
o Obtain pre-approval from a financial institution (e.g., Bank, Credit Union, AAA, etc.) before discussing finance rates with the car dealer to ensure you get the best lending rate available to you.
o There are quite a few options (online and in-store) available to consumers when considering where to buy a used vehicle besides a dealership. Visit your local AAA, which may offer discounts for members.
o In Arizona AAA Car Buying provides Members with a hassle-free way to purchase a vehicle. AAA advisors can make the car buying process simple and enjoyable, helping you find the perfect vehicle.
Additional AAA Support:
o Your Driving Costs calculator: Customizable digital tool that offers cost analyses for specific vehicles by category, new and used cars (up to five model years back).
o AAA Car Guide: Annual guide that ranks and rates vehicles with the latest automotive technology.
o AAA’s Car Buying Program: Comparisons for consumers to use while car shopping and buying.
o EV 101 (Digital Buyer's Guide): Resource and educational guide for consumers to use while electric vehicle shopping and buying.
O Repair Cost Calculator: Repair costs breakdown for parts and labor, including AAA member discounts available when visiting AAA Approved Auto Repair facilities.
Methodology and Overall YDC Analysis
AAA uses a proprietary methodology to calculate the costs of owning and operating a new car in the United States. Data is gathered from various sources, including Vincentric LLC, and incorporates standardized criteria to estimate the costs of using a new vehicle for personal transportation over five years and 75,000 miles of ownership. The use of standardized criteria ensures that AAA estimates are consistent when comparing the driving costs of different vehicle types. Actual driving costs will vary based on driving habits, location, operating conditions and other factors.
AAA evaluated nine categories of vehicles – consisting of 45 models – to determine a new vehicle’s average annual operating and ownership costs. AAA selects top-selling, mid-priced models and compares them across six categories: fuel, maintenance/repair/tire costs, insurance, license/registration/taxes, depreciation, and finance charges. The study assumes a five-year ownership period, with the vehicle being driven 15,000 miles/annually (or a total of 75,000 miles).
About AAA Mountain West Group
AAA Mountain West Group is a membership and full-service leisure travel organization, proudly serving over 6.7 million Members across Alaska, Arizona, Nevada, Northern California, Montana, and Utah. AAA delivers unmatched expertise and value through roadside assistance and electric vehicle (EV) resources, along with comprehensive auto repair, travel, insurance, financial, and home security services. Powered by 5,300 dedicated Team Members, AAA is on a mission to revolutionize solutions that help our Members.