New Car Ownership Costs Rose to $12,863 in 2026
The American Automobile Association reported that rising prices pushed the average monthly cost of vehicle ownership to $1,071.92.
Updated on Sept. 19, 2026 in Car Maintenance
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In 2026, the average annual cost for Americans to own and operate a new car reached $12,863. This figure accounts for various expenses including depreciation, fuel, and maintenance, marking a notable increase from the $11,577 average estimated in 2025.
Why it matters
Understanding these rising expenses helps consumers better manage their long-term household budgets and evaluate the true financial commitment of purchasing a new vehicle. The data highlights how shifting fuel and depreciation costs directly influence the total burden of car ownership.
The study utilized a sales-weighted average MSRP of $39,376 to calculate the annual $4,422 depreciation cost. Owners of half-ton pickups faced higher expenses, with costs reaching $1.10 per mile.
The players
American Automobile Association
This is a non-profit federation of motor clubs in North America that provides services such as roadside assistance and automotive research.
The details
The American Automobile Association analyzed 34 vehicle models across seven categories over five years and 75,000 miles to determine these figures. The comprehensive analysis accounted for fuel, maintenance, repairs, tires, taxes, registration, and financing expenses.
Timeline
In 2025, the average annual ownership cost was estimated at $11,577.
In 2026, the average annual ownership cost increased to $12,863.
Roadmap
This data reflects the broader automotive trend of increasing cost-to-own metrics driven by higher interest rates and complex vehicle technology. As manufacturers pivot toward electrification, these findings provide a benchmark for how fuel and maintenance shifts impact the long-term industry landscape.
Consumers should be prepared for average monthly payments exceeding $1,000 when budgeting for a new vehicle purchase. Drivers can mitigate these expenses by choosing electric vehicles, which require 66 percent to 70 percent less in energy costs compared to traditional gasoline models.
The takeaway
Prospective buyers should account for the $4,422 average annual depreciation when planning their long-term finances. Comparing electricity costs of 18 cents per kilowatt-hour against gasoline prices can help identify potential savings over the vehicle's lifespan.
Further reading
For additional context on vehicle expenses, visit the Car Maintenance section.
Source note: This article includes information reported by GM Authority.
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Given rising ownership costs, do you feel now is a good time to buy a new car?
