Owning a New Car Now Costs $11,577 a Year — and Most Americans Don't Know Where the Money Goes

Ask most car owners what their vehicle costs them each month, and they'll quote their loan payment. Maybe they'll add insurance. But the true number — the complete, all-in annual cost of owning and operating a new car — is something most Americans have never actually calculated. According to AAA's most recent Your Driving Costs study, the answer is $11,577 per year, or $964.78 per month. And that's before a single unexpected repair.

Ready to start shopping? Browse thousands of vehicles in our Car Listings to find your next ride.

The Number That Shocks Most Buyers

The $11,577 figure covers six cost categories across 45 top-selling vehicle models, based on five years of ownership and 15,000 miles driven annually. It represents a $719 improvement from the prior year — driven by lower depreciation, reduced finance charges, and a modest dip in fuel costs before the Iran war pushed gas back above $4 a gallon.

Read also: 300,000 Used EVs Are About to Flood the Market — and Buyers Could Finally Win

"It might be tempting to rush to the dealer for a new car when you notice a drop in ownership costs this year," said Doug Johnson, AAA Mountain West Group spokesperson. "However, consumers should factor in all the expenses involved before making any commitments."

For buyers looking at a 2026 mid-size sedan, the 2026 AAA data shows annual costs of approximately $12,297 — the full category breakdown being depreciation at $4,822 (39.2% of total cost), fuel at $2,465, insurance at $2,124, maintenance and repairs at $1,386, registration and taxes at $798, and finance charges at $702.

Torn between two models? Use our Compare tool to see them side by side before you decide.

The Silent Killer: Depreciation

Depreciation is the undisputed king of annual costs — and most buyers never feel it directly until they try to sell or trade in. The average vehicle in AAA's study loses $4,334 in value per year. Cars typically lose around 15% to 20% of their value in their first year, and about 15% annually over the next four years.

That means a $49,000 new vehicle purchased today will likely be worth somewhere between $25,000 and $28,000 in five years — a loss of $21,000–$24,000 that never appears on a monthly statement but is very real when it comes time to sell. The solution most financial advisors recommend: keep the car longer. Every year past year five that you hold a vehicle, the annual depreciation cost drops meaningfully.

Read also: Car Insurance Costs $2,539 a Year on Average — Here's Why Yours May Be Even Higher

Which Category of Car Costs the Most

Not all vehicles carry the same burden. With high fuel costs, high insurance premiums, and pricey maintenance, larger pickups rank as the most expensive vehicles to own — including the Chevy Silverado, Ford F-150, and Ram 1500. The average full-size truck buyer spent more than $66,000 on their last purchase, and fuel costs alone run meaningfully higher than for sedans and compact SUVs.

Fuel costs and depreciation hurt midsize SUV affordability, making them the second most expensive segment for drivers to own, with models like the Ford Explorer, Jeep Grand Cherokee, and Subaru Outback representing that category.

For buyers prioritizing total cost of ownership, compact sedans and compact SUVs consistently deliver the best value. Many of the highest-rated vehicles in AAA's most affordable categories start well below $30,000.

Building your ideal collection? Create your own Dream Garage and design the lineup you've always wanted.

Maintenance Is Getting More Expensive

Repair costs have increased 45% since 2020, driven by vehicle complexity. Modern cars carry 30 or more onboard computers. A headlight assembly that cost $50 in 2000 now runs $1,500 or more. Average labor rates at independent shops hit $150 per hour in 2026, while dealer service departments are higher still. Budget $75–$100 per month for maintenance on newer vehicles, and $100–$200 for vehicles over 60,000 miles.

Want more car insights like this? Explore the latest stories in our Journal.

EVs vs. Gas: The Real Cost Comparison

While EVs remain more expensive in ownership costs — depreciation, insurance, fees, and financing — they have lower operating costs, particularly in fuel and maintenance. With gas prices above $4 per gallon following the Iran war, the fuel savings advantage for EVs has expanded significantly from where it stood in the 2025 study. The calculus shifts depending on how many miles you drive annually — higher-mileage drivers benefit most from EV fuel savings, while lower-mileage drivers may find the higher purchase price difficult to recover.

The number on the window sticker is the beginning of the conversation, not the end of it.