AAA: New Car Ownership Costs Rise to $12,863

AAA's 2026 analysis finds the annual cost of owning and running a new car climbed from $11,577 the prior year.

Updated on Nov. 8, 2026 in Car Maintenance

AAA: New Car Ownership Costs Rise to $12,863

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AAA reported that the annual cost of owning and running a new car rose to $12,863 in 2026, or $1,071.92 per month, up from $11,577 in 2025. The group also found electric cars cost more to own than gasoline and hybrid cars.

Why it matters

Higher ownership costs add a substantial burden to household budgets for anyone buying or keeping a new vehicle across the United States. The increase has been linked to surging fuel prices, faster depreciation, and higher finance interest rates.

Owning a new car now costs $12,863 annually, with ownership costs adding 32.67% to the $39,376 sales-weighted average MSRP. Gas-powered medium sedans cost $10,582 per year, compared with $13,662 for electric medium sedans and $10,204 for hybrids.

The players

AAA

AAA, the American Automobile Association, is a national motorist advocacy and services organization that publishes annual analyses of vehicle ownership costs.

The details

Regular-grade gasoline averages $4.152 per gallon, with gas costs up 31.8%, while electricity prices have risen 7.8% since 2025. Depreciation can add a weighted average of $4,422 per year to the cost of some popular models, and electric cars face higher depreciation, fees, and finance costs than gasoline and hybrid cars.

2025: Average annual ownership cost of new cars recorded at $11,577.
2026: AAA reports annual ownership cost rising to $12,863.

Roadmap

AAA's recurring Your Driving Costs study tracks the annual cost of owning a new car, and the 2026 figure of $12,863 continues that series with a clear increase over 2025's $11,577. The rise reflects a broader cost environment in which electric vehicles carry higher ownership expenses than gasoline and hybrid models.

A new car now carries roughly $1,072 in monthly ownership costs, so buyers should factor fuel, depreciation, and financing into their budgets. Electric buyers should weigh the higher ownership cost against home charging rates that can run as low as 18 cents per kilowatt hour.

The takeaway

Depreciation and financing can add more to a new car's yearly cost than many buyers expect. Comparing total ownership costs, not just sticker price, helps reveal which powertrain fits a given budget.