Cars

AAA Says Owning A New Car Costs You Over $9,200 Per Year


A study conducted by AAA has revealed the average cost of owning a new car in the United States – and it’s not cheap.

The study, which has been conducted annually since 1950, reveals that the average annual ownership cost for a new car in 2019 is $9,282 per year, or $773.50 per month.

AAA came to that figure by averaging costs among 45 popular 2019MY vehicles across nine categories, among them sedans, SUVs, minivans, trucks, electric vehicles and hybrids. High-end sports cars and luxury cars are not included in the study as they, obviously, don’t represent the average car owner.

Also Read: New Study Finds Rear Automatic Braking Can Reduce Collisions By 81%

The study estimates annual costs over five years or 75,000 miles (120,700 km) and looks at individual factors such as 60 months financing with 10 per cent down, the cost of buying a new set of tires, and holding insurance with $100,000/$300,000 limits and a $500 deductible. Unsurprisingly, depreciation is a huge factor in the cost of owning a new car and, on average, comes down to more than $3,300 a year, or more than a third of total ownership costs.

The cheapest new car you can own is a small sedan with an estimated annual cost of $7,114, while mid-size SUVs had an average ownership cost of $10,265 per year. If a new car owner were to drive the full 75,000-miles over a five-year period, they would be spending 79 cents per mile for the privilege of driving a new car. Perhaps buying a used car isn’t a bad idea after all? Sure, most of the spending will be the same, and you’ll have to account for replacing items that wear over time, but at least you don’t take that much of a hit on depreciation.

If you’re curious to see how much owning a new car would cost you depending on how often you drive, check out the full study here.

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Thanks for sharing this, you are awesome !

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