Annual New Vehicle Ownership Costs Have Risen

A new AAA study shows the average annual cost to own a new vehicle in the U.S. climbed to $12,863.

Updated on Sept. 28, 2026 in Buying/Selling

Isometric editorial illustration of a car key fob resting on a metallic brake rotor, representing rising vehicle ownership costs. — The average annual cost to own a new vehicle in the U.S. climbed to $12,863, according to a 2026 AAA report. AI Illustration. Upload story photo >

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AAA released its 2026 Your Driving Costs study, revealing that the average cost to own and operate a new vehicle has reached $12,863 per year. This figure translates to a monthly expense of $1,071.92 for the average driver.

Why it matters

Rising vehicle purchase prices have led to larger loan amounts and higher interest payments. Additionally, increased gasoline prices, depreciation, and finance charges contributed to an 11% year-over-year rise in ownership costs.

The study, which calculates ownership over five years and 75,000 miles, found that vehicles depreciate by an average of $4,422 annually. Drivers also face annual finance charges of $1,184 and insurance costs of $2,098.

The players

AAA

AAA is a federation of motor clubs in North America that provides services such as roadside assistance and automotive research.

The details

AAA updated its methodology for this report to incorporate electric vehicles and hybrids into seven distinct vehicle categories. Researchers calculated average finance charges based on a five-year loan term with a 15% down payment.

September 15, 2026: AAA released the Your Driving Costs study.

Roadmap

This study updates the annual ownership figures previously established by the 2025 AAA Your Driving Costs study. The current trend toward higher vehicle prices and increased interest rates marks a departure from the more stable ownership costs seen in prior years.

Car buyers should account for the $1,071.92 average monthly expense when budgeting for a new vehicle purchase. With gasoline costs jumping 31.8% year-over-year, drivers may also need to adjust their monthly fuel budget to accommodate higher pump prices.

The takeaway

Drivers looking to reduce costs may want to prioritize fuel efficiency or consider the total five-year ownership projection before purchasing. Understanding that depreciation accounts for a significant portion of annual costs can help consumers make more informed long-term financial decisions.