According to a new report, owning a vehicle continues to get more expensive.
The AAA study indicates that the annual cost of owning and operating a vehicle this year is $12,297, or about $1,025 a month, up $115 monthly year-over-year.
Owning Vehicles Harder on the Wallet
Analysis finds that depreciation is up, along with average vehicle prices and accompanying finance costs.
September 5, 2024
After small sedans, hybrid vehicles have the lowest ownership costs.
Credit:
Pexels/Karolina Grabowska
1 min to read
AAA puts most of the blame on vehicle depreciation and increased finance costs due to higher average vehicle prices.
When it comes to depreciation, vehicles lost on average $4,680 in value this year, led by increasingly popular oversize models with high-tech features, AAA says.
Finance costs, meanwhile, were an average $1,332 annually, up 6% year-over-year, in direct correlation to a slight increase of 0.7% in the sales-weighted average manufacturer’s suggested retail price to $38,883, though AAA points out the price increase could be due in part to vehicle replacements.
After small sedans, it said hybrid vehicles had the lowest ownership cost due to strong fuel economy, low maintenance costs, and their position near the middle of the depreciation and finance and insurance cost ranges.
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