Summary
- Cost to own and operate a vehicle has increased from the previous year, with an average cost of $12,297 annually, or $1,024.71 monthly.
- Pickup trucks have the highest ownership costs, with a half-ton crew cab pickup costing over $16,000 per year.
- Electric vehicles (EVs) have a total yearly ownership cost of $10,811, higher than gas-powered vehicles and hybrids.
- Hybrid vehicles are the most economical to own and operate across all vehicle types according to the AAA study.
- AAA provides an online tool called the Your Driving Costs Calculator to help determine the cost of ownership and operation for a specific vehicle.
Article
A recent study conducted by the AAA sheds light on the rising cost of operating a vehicle in the United States, showing that every mile driven now costs more than it did in previous years. Surprisingly, the cost of ownership for an Electric Vehicle (EV) is not the lowest compared to gasoline and hybrid vehicles. The total cost to own and operate a new vehicle in 2024 is $12,297, an increase of $115 from the previous year. Factors contributing to this rise include inflation, depreciation, and finance charges, making it harder for consumers to afford owning a vehicle.
One of the most significant culprits impacting consumers’ budgets are pickup trucks, with half-ton crew cab pickups costing over $16,000 annually. The cost per mile for fuel and maintenance for these vehicles exceeds 30 cents. In contrast, a small gas-powered sedan has the most economical ownership cost at $5,786 per year. The study also compared EVs, internal combustion engine vehicles, and hybrids, revealing that the total yearly ownership cost for an EV is $10,811, higher than a midsize pickup truck at $7,913 and a hybrid at $7,025.
The high ownership cost of EVs can be largely attributed to depreciation, according to the AAA. As the prices of electric vehicles continue to rise, so do finance charges and depreciation rates. Despite lower maintenance costs for EVs that do not require oil changes or transmission service, the heavy weight of their batteries leads to quicker tire wear and high costs associated with eventually replacing the battery. While the maintenance costs may be lower overall, they are not entirely free, dispelling a common misconception about EVs.
For shoppers looking for a vehicle that is economical to own and operate, hybrids emerge as the winner across different vehicle types. The AAA recommends using their online tool, the Your Driving Costs Calculator, to determine the cost of ownership and operation for a specific vehicle up to five model years back. By inputting basic information such as make, model, model year, estimated annual mileage, and state, consumers can make an informed decision about which type of vehicle best suits their needs and budget. Additionally, shoppers are advised to consider how they will use the vehicle 98% of the time to avoid overpaying for unnecessary features that are only used occasionally.
Ultimately, the study highlights the increasing cost of owning and operating a vehicle in the current economic climate. While EVs are often perceived as a cost-effective and environmentally friendly alternative, the reality is that their total yearly ownership cost can be higher than traditional gasoline and hybrid vehicles. By understanding the factors that contribute to ownership costs and using tools like the Your Driving Costs Calculator, consumers can make informed decisions when purchasing a vehicle that aligns with their budget and usage needs.
Read the full article here
