New-car ownership averages $12,863 a year in 2026 study

The estimate goes beyond the monthly payment

AAA's 2026 Your Driving Costs analysis estimates that owning and operating a new vehicle for personal transportation costs $12,863 a year, equal to $1,071.92 a month. The model assumes five years of ownership and 75,000 miles, or 15,000 miles per year.

The analysis evaluates 34 top-selling models across seven vehicle categories. It includes fuel, maintenance, repairs, tires, insurance, license, registration, taxes, depreciation, and finance charges. Actual results will differ with purchase price, location, driving, insurance, credit, maintenance, and resale value.

Depreciation remains the biggest average cost

AAA estimates weighted-average depreciation at $4,422 per year, making the loss in value between purchase and resale the study's largest ownership expense. The sales-weighted average manufacturer suggested retail price for the models studied was $39,376, although incentives and negotiation can change the amount paid.

Vehicle category also matters. AAA estimates a half-ton pickup costs $1.10 per mile to own and operate—48 cents more than a small sedan, or $7,191 more per year under the study's mileage assumption.

Fuel savings did not determine the lowest total cost

For selected models in four categories, AAA compared gasoline, hybrid, and electric powertrains. EV charging costs were 66% to 70% lower than gasoline fuel costs in those comparisons, but higher depreciation, fees, and finance costs could outweigh the energy savings. Hybrids were the most consistently lower-cost alternative to gasoline in the four comparison categories.

That powertrain comparison uses a smaller set of medium sedans, compact SUVs, medium SUVs, and pickup trucks. AAA says its results should not be treated as a comparison of every EV, hybrid, or gasoline model on the market.

Build a vehicle budget around total cost

• Estimate depreciation and likely resale value instead of comparing payments alone.
• Price insurance for the exact vehicle before buying and include registration, taxes, maintenance, tires, and energy.
• Compare loans using the same amount and term, including APR, finance charges, fees, and total payments.
• Choose a vehicle category that fits regular needs; a larger vehicle can add far more cost than occasional rental or delivery alternatives.