BUFFALO, N.Y. — The annual cost to own a new car has crossed the $10,000 mark, according to a new report from AAA.
The annual driving costs study revealed that the average yearly cost in 2022 is $10,728 or $894 per month. That's a considerable increase from 2021, when the average yearly cost was $9,666 or $805.50 per month. The most significant factor pushing this year's price tag is fuel.
"Consumers are paying more attention when purchasing a new vehicle since everything is more expensive right now," said Greg Brannon, AAA's director of automotive engineering. "With the recent increase in fuel prices, more and more people want to know the true costs of owning a car beyond their monthly payment."
Gas prices have seen a dramatic increase since early March, and as a result, the cost of maintaining a vehicle has increased accordingly.
This year's analysis also revealed that electric vehicles have the second lowest annual ownership after small sedans. Compared to a gas-powered car owner, an electric car owner will only spend about four cents per mile, compared to 18.4 cents per mile for gas.
Assuming both cars travel 15,000 miles per year, it would cost $600 to charge the electric car and $2,700 to fill up the tank for the gas-powered car, a $2,100 difference. In addition to saving money on fuel, electric vehicles have the lowest maintenance, repair, and tire costs.
This year AAA has launched Your Driving Costs calculator, a new interactive and personalized breakdown for car shoppers. The online tool allows users to view a comprehensive cost analysis of a specific vehicle to determine ownership costs that best align with their budget.