AAA: Yearly Cost for New Vehicles Down $700
The cost of owning a new car dropped last year, according to a study by AAA.
On average, its costing Americans $11,500 a year, or about $974.78 a month.
“It’s been notable the past several years, because we’ve seen these costs go up,” said Skyler McKinley, AAA’s regional director for public affairs. “There’s inflationary pressure on the automobile industry across categories. Certainly when it comes to maintenance, certainly when it comes to financing, certainly when it comes to sticker price. This year’s study is remarkable, in that there’s been a slight decrease.”
Annual costs aren’t just your car payment — they’re impacted by the sticker price, fuel, financing and the type of car you choose to buy.
AAA says those costs are down from last year by about $719. That’s largely due to the dropping cost of fuel, but also lower financing costs. Some people are also opting to buy inexpensive vehicles instead of something more pricey.
Skyler McKinley, AAA’s regional director for public affairs, said the organization conducts studies on car ownership to help consumers know how much they’ll pay overall each year.
McKinley said that while it is cheaper to buy a car now, for many, it’s about the value your car holds over time. The average American, he said, has a 13-year-old car.
“Folks hold on to their cars,” McKinley said. “It’s cheaper to own a new car in America now this year than it was last year, but you’re not actually going to see the benefit of that unless you own that car for some time. That’s why we track this on an annual basis.”
Depreciation plays a role, too. That’s the difference between how much the car costs when you buy it, and how much you sell it for. In this study, vehicles retained more value this year than they did last year.
If you are in the market for a new car, McKinley recommends shopping through the rest of September. That’s because it’s the end of the quarter, and salespeople are working to meet their quotas. If you’re in the market for an electric vehicle, the EV tax credit is also officially ending on September 30.
Cars in the Porsche lot in Golden Valley.
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