AAA’s 2026 Your Driving Costs study puts the average cost of owning and operating a new vehicle at $12,863 a year. That is about $1,072 a month, or roughly 86 cents per mile at 15,000 miles a year. Depreciation is the biggest single piece, and fuel plus maintenance together make up about a third of the total. Here is where the money goes, how it varies by vehicle, and how to find your own number.
Key Takeaways
- Average new-car ownership cost in 2026: $12,863 a year (AAA)
- Depreciation is the largest cost at $4,422 a year, followed by insurance
- Costs range from about 62 cents per mile for a small sedan to about $1.10 for a half-ton pickup
- Averages hide big differences: a paid-off older car has a very different cost profile
- The only number that matters for you is your own cost per mile
Where the $12,863 Goes
| Cost | Per year | Share of total |
|---|---|---|
| Depreciation | $4,422 | 34% |
| Insurance | $2,098 | 16% |
| Finance charges | $1,184 | 9% |
| License, registration and taxes | $802 | 6% |
| Fuel (17.3¢ per mile) | about $2,595 | 20% |
| Maintenance, repairs and tires (11.7¢ per mile) | about $1,755 | 14% |
| Total | $12,863 | 100% |
Fuel and maintenance are quoted by AAA in cents per mile; the annual figures above are our arithmetic at 15,000 miles a year, so they may differ from AAA’s by a few dollars. AAA’s fuel assumptions were gasoline at $4.152 a gallon (a 12-month average through May 2026) and home electricity at 18 cents per kWh.
Cost by Vehicle Type
At 15,000 miles a year, AAA’s 2026 figures by category:
| Vehicle type | Cost per mile | Cost per year |
|---|---|---|
| Small sedan | 61.7¢ | $9,259 |
| Medium sedan | 70.4¢ | $10,555 |
| Subcompact SUV | 71.7¢ | $10,752 |
| Compact SUV | 77.8¢ | $11,670 |
| Midsize pickup | 87.3¢ | $13,089 |
| Medium SUV | 96.3¢ | $14,447 |
| Half-ton pickup | $1.10 | $16,449 |
Gas vs. Hybrid vs. Electric
AAA also compared powertrains in four categories (annual cost, as reported):
| Category | Electric | Gas | Hybrid |
|---|---|---|---|
| Medium sedan | $13,662 | $10,582 | $10,204 |
| Compact SUV | $11,888 | $11,656 | $11,201 |
| Medium SUV | $14,332 | $14,431 | $13,698 |
| Pickup truck | $17,414 | $16,626 | $16,117 |
Hybrids came out cheaper than the comparable gas model in all four categories. Charging an EV cost 66% to 70% less than the fuel for a comparable gas vehicle, but higher depreciation and other costs often offset that, which is why EVs weren’t automatically cheaper overall. AAA notes the EV and hybrid comparison covers fewer models than the main study, so don’t compare it directly with the table above. For a deeper look see the real cost of owning an EV vs. a gas car.
Read the Averages Carefully
- They’re for new cars. AAA models a new vehicle over five years and 75,000 miles and includes finance charges and depreciation. A paid-off ten-year-old car has no payment and little depreciation left, but often costs more to repair.
- They changed method. AAA’s 2025 figure was $11,577, and AAA says the two years aren’t directly comparable because of methodology changes, so don’t read the jump as pure inflation.
- They leave out you. Your mileage, local gas and insurance prices, driving style and luck with repairs move the result far more than the average does.
Why Leaving Out Depreciation Misleads You
Most drivers estimate cost per mile from what they pay: gas, insurance, maintenance. Our cost per mile calculator does exactly that, and its default gas car comes out near 36 cents per mile because it excludes depreciation and finance charges. AAA’s 86 cents includes them. Neither is wrong; they answer different questions. A complete number, the one that tells you whether to keep, sell or replace a car, includes depreciation. See how much your car is actually costing you per mile.
How to Find Your Own Cost of Ownership
- Pick a period, ideally a full year.
- Add up every cost: fuel or charging, maintenance and repairs, insurance, registration, parking and tolls, finance charges, and an estimate of depreciation.
- Divide by miles driven to get your cost per mile.
- Repeat on a schedule so you can see the trend as the car ages.
Doing that from memory is where most people stall. TORQ Track keeps the receipts, the maintenance log and the mileage in one place and updates your cost per mile as you log, and the Pro plan adds full history and a vehicle health score.
Sources
- AAA, Your Driving Costs 2026 study (published September 2026), as reported in the articles below
- CarPro: AAA Study: New Vehicle Ownership Is Up To $12,863 Per Year (category and powertrain figures as reported)
- WXYZ: AAA study: Owning and operating a new car now costs nearly $13,000 a year
- AAA (2025 study): Driving Cost Analysis Shows $719 Decline in Annual Ownership Expenses
Frequently Asked Questions
How much does it cost to own a car per year?
AAA's 2026 Your Driving Costs study puts the average cost to own and operate a new vehicle at $12,863 a year, about $1,072 a month or roughly 86 cents per mile at 15,000 miles a year. Your own cost depends on the vehicle, whether it's financed, how much you drive and local prices.
What is the biggest cost of owning a car?
Depreciation. In AAA's 2026 figures it averages $4,422 a year, more than a third of the total, and it never arrives as a bill, which is why drivers underestimate it.
Is it cheaper to own a hybrid or an EV than a gas car?
In AAA's 2026 data hybrids cost less per year than comparable gas models in all four categories compared. EVs cost far less to charge than gas costs to burn, but higher depreciation and other costs often offset the savings. See our EV vs. gas cost-per-mile breakdown.
Do these numbers apply to a used or paid-off car?
Not directly. AAA's figures are for new vehicles over five years and 75,000 miles and include depreciation and finance charges. A paid-off older car has no payment and less depreciation but usually higher repair costs, so track your own costs instead of relying on an average.
How do I calculate my own cost of owning a car?
Add up a year of fuel or charging, maintenance and repairs, insurance, registration, finance charges and depreciation, then divide by the miles you drove for your cost per mile. Our cost per mile calculator does a quick version, and TORQ Track does it from your real receipts.
