The Price of New Car Ownership Continues to Climb

61% of car buyers are considering purchasing another vehicle

(Sept. 5, 2024) - This year’s Your Driving Cost (YDC) study reveals that the total cost to own and operate a new vehicle is $12,297 or $1,024.71 monthly, an increase of $115 from 2023. The leading cost culprits are depreciation and finance charges.“A vehicle purchase is a big financial commitment and should be treated as a business decision,” said Todd Burger, Chief Automotive Officer for AAA Mountain West Group. “When considering purchasing a new or used vehicle, it's important to understand all costs associated with owning and operating a car monthly and annually.”

Factors driving new ownership costs include:

  • Depreciation. The difference between the car’s value upon purchase and when sold, is the most significant cost category associated with vehicle ownership in this year’s analysis. Cars lose $4,680 annually, on average, according to this year’s YDC.
  • Finance charges. A higher sticker price directly impacts finance costs, with this year’s vehicles incurring an average annual finance charge of $1,332, a 6% increase from the previous year.
  • Car prices. The sales-weighted average manufacturer’s suggested retail prices (MSRP) for new vehicles in the study is $38,883, an increase of 0.7% over last year. MSRP may not always reflect the actual purchase price and can vary based on demand.

This year, AAA compared top-selling Electric Vehicles (EVs) and Hybrid models in four popular vehicle categories - medium sedan, compact SUV, medium SUV, and pickup truck. This gives consumers a snapshot of ownership costs for select EV and Hybrid models compared to their gas-powered counterparts.

  • EVs have the second-highest total ownership costs due to depreciation, purchase prices, and finance charges. Preferences have shifted to more expensive and larger EVs, resulting in growth in these cost categories. EVs also have the lowest fuel cost of any vehicle type, based on a national average electricity price of 15.9 cents per kilowatt hour (kWh). Because of their design and powertrain, they have the lowest maintenance costs.
  • Hybrid vehicles have the second lowest total ownership costs behind small sedans. They benefit from excellent fuel economy and low maintenance costs and rank near the middle in depreciation, financing, and insurance costs.

Car Buying Resources

With higher purchase prices impacting other cost categories, AAA offers these car-buying resources for drivers:

About Your Driving Cost

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.

About AAA Mountain West Group

AAA Mountain West Group (AAA MWG) is a membership and full-service leisure travel organization, proudly serving over 6.7 million Members across Northern California, Arizona, Utah, Nevada, Montana, Wyoming, and Alaska. AAA MWG 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 MWG is on a mission to revolutionize solutions that help our Members.