The total cost to own and operate a new vehicle is $12,297, or $1,024.71 monthly — an increase of $115 from 2023, according to AAA’s 2024 Your Driving Cost (YDC) study.

The leading costs are depreciation and finance charges. With automakers adding more vehicle choices with major redesigns, AAA says buyers should take into account several other factors that go into ownership and operation costs.

“Buying a new car can be exciting,” stated Greg Brannon, AAA’s director of automotive research, in a news release. “But consumers should fully understand all the costs of owning and operating a new vehicle from purchase to resale.”

Depreciation, the difference between the car’s value when purchased versus when it’s sold, is the most significant cost category associated with vehicle ownership in this year’s analysis, AAA said.

On average, cars lose $4,680 annually. The popularity of oversized vehicles with cutting-edge features has led to an increase in new car prices resulting in higher depreciation costs, AAA said.

Other factors driving up new ownership costs include:

• • Car prices: The sales-weighted average MSRP for new vehicles in the study is $38,883, an increase of 0.7% over last year. “It’s important to note the MSRP may not always reflect the actual purchase price and can vary based on demand,” AAA said. “The average MSRP for each vehicle category is weighted based on its share of the total vehicle sales. This means higher-selling categories, such as pickup trucks, have a larger impact on the average value.”
  • Finance charges: This year’s vehicles incur an average annual finance charge of $1,332, a 6% increase from the previous year. “A higher sticker price directly impacts finance costs,” AAA said.

This year, AAA found EVs have the second-highest total ownership costs due to depreciation, purchase prices, and finance charges as preferences have shifted to more expensive and larger EVs resulting in growth in those cost categories.

EVs have the lowest energy cost of any vehicle type, based on a national average electricity price of 15.9 cents per kilowatt hour (kWh), and because of their design and powertrain, EVs have the lowest maintenance costs, according to AAA.

Hybrid vehicles have the second lowest total ownership costs behind small sedans, according to the study. They benefit from excellent fuel economy, low maintenance costs, and rank near the middle in depreciation, financing, and insurance costs.

According to AAA’s 2024 EV consumer sentiment survey, 1 in 3 U.S. adults, or 31%, said they would be “very likely” or “likely” to buy a hybrid.

“Hybrid vehicles are a reasonable, affordable option for those who want to try the benefits of electrification,” said Brannon. “Hybrids benefit from excellent fuel economy, low maintenance costs, depreciation, and insurance – making them an affordable option for car buyers.”

AAA expanded this year’s YDC by comparing top-selling EVs and hybrid models in four popular vehicle categories — medium sedan, compact SUV, medium SUV, and pickup truck. Over the past few years, growth in the popularity of vehicles within those categories has been a significant trend, requiring automakers to expand their lineups to include more appealing models, AAA said.

The new analysis provides consumers a snapshot of ownership costs for select EV and hybrid models compared to their gas-powered counterparts, AAA said.

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