New Car Ownership Costs Rose to $12,863 in 2026
The average monthly cost to own a new vehicle reached $1,071.92 this year as expenses for fuel and depreciation climbed.
Updated on Sept. 19, 2026 in Car Maintenance
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Given rising ownership costs, do you feel now is a good time to buy a new car?
The American Automobile Association found the average annual cost to own and operate a new car rose to $12,863 in 2026. This figure encompasses fuel, maintenance, taxes, and depreciation for the average new vehicle priced at $39,376.
Why it matters
Rising ownership costs significantly impact household budgets and long-term financial planning for car buyers. These expenses fluctuate based on vehicle type, with major differences in operating costs between efficient sedans and larger pickups.
Annual depreciation accounts for $4,422 of the total cost, while gasoline prices averaged $4.152 per gallon, a 31.8 percent increase from 2025. Meanwhile, electricity prices for home charging rose 7.8 percent to an average of 18 cents per kilowatt-hour.
The players
American Automobile Association
A national organization that provides roadside assistance and tracks automotive economic trends for American drivers.
The details
This analysis examined 34 vehicle models across seven categories over five years and 75,000 miles of operation. Costs were calculated by totaling fuel, repairs, maintenance, insurance, taxes, registration, financing, and vehicle depreciation. Larger vehicles like half-ton pickups now cost $1.10 per mile to operate, creating a $7,191 annual cost gap compared to small sedans.
Timeline
2025: The average annual ownership cost was estimated at $11,577.
2026: The average annual ownership cost increased to $12,863.
The Home Front
These figures reflect a broader trend of increasing transportation-related financial commitments for American households. The data follows the American Automobile Association's annual driving cost report, illustrating how volatile fuel and electricity markets impact the total cost of ownership.
Review your current vehicle financing and fuel expenses to see how they compare to the $1,071.92 monthly average. Consider shifting your long-term budget projections to account for these rising depreciation and energy costs.
The takeaway
Understanding these ownership costs can help your family make more informed decisions when choosing between different vehicle types. Keep track of your monthly fuel and maintenance receipts to see if your household spending aligns with these national averages.
Further reading
For more guidance on managing your vehicle budget, explore our Car Maintenance section.
Source note: This article includes information reported by GM Authority.
Live Poll
Given rising ownership costs, do you feel now is a good time to buy a new car?
