The price of owning a new car in the U.S. continues to rise in 2024, according to a recent report by the American Automobile Association (AAA). While not including the vehicle's purchase price, the average annual cost to own and operate a new vehicle is now $12,297, or about $1,024 each month, the data showed, notching an increase of $115 from 2023. "Buying a new car can be exciting," said Greg Brannon in the report, AAA's director of automotive research. "But consumers should fully understand all the costs of owning and operating a new vehicle from purchase to resale." Key issues addressed in the study 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. On average, cars lose a staggering $4,680 annually.
  • Car prices: The sales-weighted average manufacturer's suggested retail price (MSRP) for new vehicles is $38,883, an increase of 0.7% over last year.
  • 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.
EVs have the second-highest total ownership costs due to depreciation, purchase prices and finance charges, according to AAA, while hybrid vehicles have the second lowest total ownership costs behind small sedans. The slideshow above illustrates the top cities where people spend the most on new vehicles as reported by WalletHub. See also:

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Joe Toppe

Joe Toppe serves as managing editor of PropertyCasualty360.com. Joe is also a father of three, an author, and longtime lover of baseball.

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