Buying a new car is expensive enough before you start thinking about everything that comes afterward. Fuel, insurance, maintenance, financing, and depreciation can turn that shiny new purchase into a much larger monthly expense.
AAA has been tracking those costs for more than 75 years through its annual Your Driving Costs analysis. For 2026, the organization examined 34 popular models across seven vehicle categories to calculate what Americans are actually spending.
The resulting figure might make that monthly payment look a little less intimidating on its own. AAA estimates that owning and operating a new vehicle now costs an average of $12,863 annually.
That works out to $1,071.92 every month, based on five years of ownership and 75,000 miles of driving. AAA says fuel prices, depreciation, and financing expenses are among the major contributors.
Depreciation Is The Biggest Expense
The average new vehicle in AAA’s study carries a sales-weighted MSRP of $39,376. Once purchased, however, losing value becomes the single largest ownership expense.
AAA calculated a weighted-average depreciation of $4,422 annually. That means depreciation alone accounts for roughly one-third of the average $12,863 yearly ownership cost.
Fuel has become more expensive as well. AAA based its calculations on regular gasoline averaging $4.152 per gallon, up 31.8% from its 2025 study, while home electricity averaged 18 cents per kWh, an increase of 7.8%.
AAA reported an annual ownership cost of $11,577 last year, although it cautions against directly comparing that figure with 2026 because its methodology has been updated.
EVs Save At The Charger, Lose Elsewhere
For the first time, AAA has integrated selected EVs and hybrids alongside gasoline vehicles within its regular vehicle categories. The results show why simply comparing gasoline and electricity prices doesn’t tell the whole ownership story.
EV charging costs were around 66% to 70% lower than gasoline costs across the categories examined. Higher depreciation, finance charges, taxes, and fees frequently erased those savings.
Medium electric sedans were a particularly striking example. AAA found that they cost 29.1% more annually to own than comparable gasoline sedans, with the latter averaging $10,582 per year — $3,080 less than their electric equivalents.
Hybrids Hit The Sweet Spot
Hybrids emerged as the most consistently affordable alternative to conventional gasoline models in AAA’s comparisons. They combined reduced fuel consumption with smaller penalties elsewhere, costing less annually than gasoline equivalents among medium sedans, compact SUVs, medium SUVs, and pickups.
Vehicle size also makes a substantial difference regardless of what’s under the hood. AAA calculated that half-ton pickups cost $1.10 per mile to operate, 48 cents more than small sedans, adding an average of $7,191 annually.
The takeaway isn’t simply that one powertrain is universally cheaper than another. Purchase price, depreciation, and vehicle category can impact you as much as what you’re paying at the pump or charging station — making the true price of a new car much larger than the number on its window sticker.