New Vehicle Ownership Costs Have Risen to $12,863
Owning a new car now costs households an average of $1,071.92 per month as prices for fuel and financing climb.
Updated on Sept. 28, 2026 in Buying/Selling
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AAA released its 2026 Your Driving Costs study, revealing that the annual cost to own and operate a new vehicle has jumped to $12,863. This 11% year-over-year increase reflects higher expenses across nearly all ownership categories.
Why it matters
Rising vehicle purchase prices have forced loan amounts and interest payments higher for families. Combined with significant spikes in fuel costs and depreciation, the overall burden of car ownership has become substantially more expensive compared to last year.
The study calculated average annual costs based on a $39,376 new-vehicle price, with depreciation accounting for $4,422. Fuel expenses saw a sharp rise of 31.8%, while finance charges averaged $1,184.
The players
AAA
A federation of motor clubs providing automotive services, road safety research, and national consumer advocacy.
The details
Researchers evaluated ownership over five years and 75,000 miles by folding electric vehicles and hybrids into seven distinct categories. The methodology assumes a five-year loan with a 15% down payment to determine typical finance costs. Depreciation remains the single largest expense, while insurance averages $2,098 annually for qualified drivers.
Timeline
September 15, 2026: AAA released the Your Driving Costs study.
The Home Front
This year-over-year cost increase highlights a broader trend of rising transportation expenses that compete with household budgets. It marks a significant shift from prior ownership models as higher interest rates and fuel prices continue to impact personal finance.
Review your current monthly transportation budget to see if your actual expenses align with the $1,071.92 average identified in the study. If your vehicle loan is nearing the end of its term, consider how total operating costs like insurance and fuel now compare to the rising cost of a new purchase.
The takeaway
Vehicle ownership is increasingly costly due to a combination of depreciation, interest, and fuel price volatility. Families should plan for these higher operating costs when budgeting for a new car and ensure they account for the full 15% down payment model used in industry benchmarks.
Further reading
For more on evaluating current vehicle market trends, visit our guide on Buying/Selling.
Source note: This article includes information reported by Top Speed.
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