Quick Answer: According to AAA’s 2026 study, owning and driving a new car costs an average of $12,863 per year, or about $1,072 per month, based on 15,000 miles a year. The biggest expense isn’t gas. It’s depreciation, at $4,422 a year. Your own cost depends on the vehicle, your mileage and whether you have a loan.
Key Takeaways
- AAA puts the average cost to own a new car at $12,863 a year in 2026, up $1,286 from 2025.
- Depreciation is the largest single cost, followed by fuel and insurance.
- A small sedan costs about 62 cents per mile; a half-ton pickup costs about $1.10 per mile.
- Driving more lowers your cost per mile but raises your total bill.
- Buying used, shopping your insurance and keeping up with maintenance are the most reliable ways to spend less.
Most people know their car payment down to the dollar. Far fewer know what their car actually costs them each year once you add insurance, fuel, repairs, registration and the value the car quietly loses every month. That hidden total is usually the surprise. So how much does it cost to own a car in 2026? AAA’s annual study gives the best national benchmark, and this guide breaks it down, explains what it leaves out and shows you how to estimate your own number.
Table of Contents
The Average Cost to Own a Car in 2026
Every year, AAA calculates what it costs to own and operate a new vehicle for five years and 75,000 miles. Its 2026 study found an average of $12,863 per year, or $1,071.92 per month, for vehicles with an average sticker price of $39,376.
That’s a jump of $1,286, or 11.1%, from AAA’s 2025 figure of $11,577. AAA pointed to three main reasons: fuel prices that were up 31.8% from the year before, higher depreciation and higher finance charges.
Here’s where the money goes:
| Cost category | Average per year | Share of total |
|---|---|---|
| Depreciation | $4,422 | 34% |
| Fuel | about $2,595 (17.3 cents per mile) | 20% |
| Insurance | $2,098 | 16% |
| Maintenance, repairs and tires | about $1,755 (11.7 cents per mile) | 14% |
| Finance charges | $1,184 | 9% |
| License, registration and taxes | $802 | 6% |
| Total | $12,863 | 100% |
Source: AAA Your Driving Costs 2026. Fuel and maintenance are converted from AAA’s cents-per-mile figures at 15,000 miles a year. Percentages are rounded.
Why Depreciation Is the Biggest Cost
Depreciation is the value your car loses over time, and it’s easy to ignore because you never write a check for it. You feel it when you sell or trade in. At $4,422 a year in AAA’s study, it costs more than fuel and insurance.
A simple example: if you buy a car for $39,000 and sell it five years later for $17,000, you’ve lost $22,000 in value. That’s $4,400 a year, whether you paid cash or took out a loan.
New cars lose value fastest in their first few years. That’s the main reason a well-chosen used car is often cheaper to own: the first owner has already absorbed the steepest drop. The trade-off is that older cars usually need more repairs, so the savings aren’t automatic.
How Much Each Type of Vehicle Costs to Own
Vehicle size makes a large difference. AAA’s 2026 figures show cost per mile rising steadily with size:
| Vehicle type | Cost per mile | Approximate yearly cost at 15,000 miles |
|---|---|---|
| Small sedan | 61.73 cents | $9,260 |
| Medium sedan | 70.37 cents | $10,556 |
| Subcompact SUV | 71.68 cents | $10,752 |
| Compact SUV | 77.80 cents | $11,670 |
| Midsize pickup | 87.26 cents | $13,089 |
| Medium SUV | 96.32 cents | $14,448 |
| Half-ton pickup | $1.10 | $16,500 |
Source: AAA Your Driving Costs 2026 (cost per mile). Yearly totals are PeakGuard Auto’s calculation at 15,000 miles and are approximate.
In AAA’s comparison, a half-ton pickup costs about $7,191 more per year than a small sedan. Bigger vehicles cost more to buy, burn more fuel, wear through larger and pricier tires, and often cost more to insure.
Electric vs. gas vs. hybrid
AAA also compared powertrains within the medium sedan category. A gas-powered medium sedan averaged $10,582 a year, while an electric medium sedan averaged $13,662, about 29% more. That surprises many people, because charging is much cheaper than gas: AAA found EV charging costs were 66% to 70% lower than fuel costs, using a home electricity rate of 18 cents per kWh.
The lesson is that fuel is only one line of the budget. Other costs, such as purchase price, financing and depreciation, can outweigh fuel savings. AAA also found hybrids came in lower than gas models in several cost categories. If you drive a lot and can charge at home, the math shifts toward EVs; if you drive little, the fuel savings matter less. Our hybrid vs. electric car comparison runs the numbers.
How Your Mileage Changes the Math
AAA’s headline number assumes 15,000 miles a year. If you drive more or less, your cost per mile changes significantly:
| Miles driven per year | Average cost per mile | Approximate yearly cost |
|---|---|---|
| 10,000 | $1.10 | $11,000 |
| 15,000 | 86 cents | $12,900 |
| 20,000 | 74 cents | $14,800 |
Source: AAA Your Driving Costs 2026 (cost per mile). Yearly totals are approximate calculations.
Driving less lowers your total bill, but each mile costs more, because fixed costs like insurance, registration and much of depreciation don’t shrink when the car sits in the driveway. That’s worth knowing if you’re deciding whether a household really needs a second car: a lightly used vehicle is still expensive to keep.
Why Your Real Cost Is Probably Different
AAA’s figures are a useful benchmark, but they describe a specific situation: a brand-new car, bought with a five-year loan and 15% down, insured with full coverage, and driven 15,000 miles a year. Your costs can look very different:
- You bought used. You’ll likely lose less to depreciation but may spend more on repairs. According to Kelley Blue Book, the average used car was listed at $27,027 in June 2026, compared with an average new-car transaction price of $50,089 in August 2026, per Cox Automotive.
- You paid cash. Your finance cost is zero, although that money could have earned interest elsewhere.
- You drive a paid-off older car. Depreciation slows to a trickle, but maintenance and repairs rise.
- You live in an expensive insurance state or a high-tax area. Insurance and registration can be far above the averages.
- Your gas prices differ. AAA assumed $4.152 per gallon for regular gas. Your local price changes the fuel line directly.
Costs the averages leave out
AAA’s study focuses on the core costs of owning and running a vehicle. Several everyday expenses sit outside it, and for some drivers they add up quickly:
- Parking, especially monthly garage fees in cities, which can rival an insurance bill
- Tolls on daily commutes
- Car washes, detailing and accessories such as floor mats, phone mounts and roof racks
- Unexpected costs like a cracked windshield, a towing bill or an insurance deductible after a minor accident
- Home charging equipment for EV owners, which is a one-time cost on top of electricity
None of these are huge on their own, but a city driver paying for parking and tolls can easily add a few thousand dollars a year on top of the averages. Include them when you estimate your own number.
Estimate your own cost in five minutes
Fill in these six lines for your car:
- Insurance: your annual premium
- Fuel: (miles per year ÷ your mpg) × local price per gallon
- Maintenance and repairs: last year’s receipts, or about $1,000 to $2,000 as a rough placeholder for a newer car
- Registration, taxes and fees: check your state’s DMV
- Finance: the interest portion of your loan payments this year (on a new, U.S.-assembled car, some of it may be tax-deductible)
- Depreciation: today’s value minus its value a year ago, using a pricing guide such as Kelley Blue Book
Add them up and divide by 12. That’s what your car really costs you each month.
How to Lower Your Car Ownership Costs
- Buy a model with a strong reliability record, and consider one that’s a few years old to avoid the steepest depreciation.
- Get pre-approved for a loan from a bank or credit union before visiting a dealer. AAA also recommends negotiating the price, interest rate and trade-in separately.
- Shop your insurance every year or two, and ask about higher deductibles or bundling discounts.
- Follow the maintenance schedule in your owner’s manual. Small jobs like oil changes and brake pad replacement are far cheaper than the repairs they prevent.
- Keep tires properly inflated and drive smoothly. Both improve fuel economy and reduce wear.
- Keep a car longer. Once the loan is paid off and depreciation slows, your yearly cost usually drops, as long as major repairs stay manageable. If you’re weighing protection against big repair bills, our guide on whether an extended car warranty is worth it explains the math.
Frequently Asked Questions
How much does it cost to own a car per month?
AAA’s 2026 study puts the average at about $1,072 per month for a new car driven 15,000 miles a year. That includes depreciation, fuel, insurance, maintenance, financing and registration. A small sedan costs noticeably less, while a large pickup or SUV costs more.
What is the biggest cost of owning a car?
Depreciation. In AAA’s 2026 study, new cars lost an average of $4,422 in value per year, more than fuel ($2,595) or insurance ($2,098). You don’t pay it monthly, but you feel it when you sell or trade in.
Is it cheaper to own a used car?
Often, yes, because a used car has already taken its steepest drop in value and usually costs less to insure. However, older cars tend to need more repairs, so choosing a reliable model and getting a pre-purchase inspection matters.
Do electric cars cost less to own?
Not always. EVs cost much less to fuel, but in AAA’s 2026 comparison, an electric medium sedan still cost about $13,662 a year versus $10,582 for a gas model. The result depends on purchase price, incentives, how much you drive and whether you can charge at home.
How much does it cost per mile to drive a car?
AAA’s 2026 average is 86 cents per mile at 15,000 miles a year. It ranges from about 62 cents for a small sedan to $1.10 for a half-ton pickup, and the per-mile cost rises if you drive fewer miles.
Why did car ownership costs go up in 2026?
AAA says the average rose $1,286 from 2025, driven mainly by fuel prices that were up 31.8%, along with higher depreciation and higher finance charges.
Conclusion
The average cost to own a new car in 2026 is about $12,863 a year, and depreciation, not gas, is the biggest piece. Your own number depends on the vehicle you choose, how much you drive, and whether you bought new, used or with a loan. Take five minutes with the worksheet above to find your real monthly cost. It’s the most useful number to know before you buy your next car.
PeakGuard Auto provides general informational guidance only. Vehicle costs vary by make, model, location and driving habits. Figures are national averages from the sources below and may not reflect your situation. This is not financial advice.
Sources
- AAA, Your Driving Costs 2026 (fact sheet): annual costs, category breakdown, cost per mile by vehicle type and mileage, assumptions. https://newsroom.aaa.com/wp-content/uploads/2026/09/AAA_YDC-Fact-Sheet_2026.pdf
- AAA announcement (September 2026), as reported by Mainstreet Daily News: year-over-year change, reasons, EV vs. gas comparison and buyer tips. https://www.mainstreetdailynews.com/business/aaa-new-vehicle-ownership-costs-hit-12863-annually
- Cox Automotive / Kelley Blue Book: average new-vehicle transaction price, August 2026. https://www.coxautoinc.com/insights/august-2026-atp-report/
- Kelley Blue Book: average used-car listing price, June 2026. https://www.kbb.com/car-news/average-used-car-price-tops-27000/
