AAA: Annual cost of vehicle ownership tops $10K

Drivers have shelled out almost $90 more per month to own and operate their vehicles in 2022 than they did in 2021, according to the latest research from AAA. In 2021, the average annual cost to own and operate a vehicle was $9,666, or $805.50 a month. The rising cost of things like fuel and maintenance have driven this figure to $10,728, or $894 a month, in 2022.

The cost of purchasing a vehicle has also climbed over the last couple of years. In July 2022, the average transaction price (ATP) of a new vehicle was $48,182, according to Kelley Blue Book. This is an increase of 11.9% from July 2021. This jump can largely be attributed to inventory shortages and supply chain issues. Increased prices for vehicles and replacement parts have also driven auto insurance premiums upward, putting even more of a financial strain on drivers.

AAA found small sedans have the lowest overall annual ownership cost, followed by electric vehicles. A large part of the reason electric vehicles are more cost-effective than many other vehicles to drive is because of savings from charging their vehicles versus fueling them. They reported that – based on costs during the first five months of 2022 – electric vehicle owners spend about 4 cents per mile to charge their vehicle, while those who drive gas-powered vehicles spend about 18 cents per mile for fuel. Other savings, like being able to skip regular maintenance tasks like changing oil and air filters, as well as lowered fees thanks to incentives offered by state and federal governments, also served to keep the cost of owning an electric car lower.

 Related:

• One in three U.S. drivers now struggle to pay for auto insurance
• Auto premiums could climb another 12% in 2023
• More insureds turning to UBI to counter rising auto premiums