The average cost to own and operate a new vehicle has climbed to $12,863 a year — or $1,071.92 a month — according to AAA’s newly released Your Driving Costs (YDC) analysis, a report the organization has produced for more than 75 years to help drivers understand the true cost of car ownership beyond the sticker price.
That figure reflects continued increases driven by fuel prices, depreciation and finance charges. AAA estimated last year’s total annual cost at $11,577, or $964.78 a month, though the organization notes methodology updates make this year’s results not directly comparable to 2025’s.
This year’s report marks a shift in how AAA presents the data: for the first time, select electric vehicles (EVs) and hybrids are integrated directly into the same vehicle categories as traditional gas-powered models, rather than being analyzed separately.
“By looking at EVs, hybrids and traditional gas-powered vehicles within the same categories, consumers can better understand how total ownership costs vary by powertrain,” said Greg Brannon, AAA’s director of automotive engineering. “Looking at the full ownership picture — including depreciation and other expenses — can help consumers better understand the total cost of each option.”
What’s driving the cost
Regular-grade gasoline used in nearly all vehicles in the study averaged $4.152 per gallon at the time of the analysis, up 31.8% compared to 2025. Home EV charging, by contrast, averaged 18.0 cents per kilowatt hour, up just 7.8% — a gap that improved the relative fuel-cost advantage of EVs and hybrids, though AAA cautions that fuel economy alone doesn’t determine which vehicle is cheapest to own overall.
Depreciation remains the single largest ownership expense, with vehicles losing a weighted average of $4,422 a year in value. That cost hits EV buyers particularly hard in some categories: EV medium sedans depreciated at roughly twice the rate of comparable gas-powered models, pushing their total ownership costs 29.1% higher.
The sales-weighted average MSRP of a new vehicle this year is $39,376, though AAA notes that incentives, rebates and market demand can significantly affect what buyers actually pay — and it’s the actual purchase price, not the sticker price, that determines financing costs and depreciation.
How gas, electric and hybrid vehicles compare
Comparing vehicles within the same categories rather than as separate classes, AAA found real trade-offs across all three powertrains:
- Gas-powered vehicles held an edge in purchase-price-driven costs like financing, taxes and depreciation. A gas-powered medium sedan cost $10,582 a year to own — $3,080 less than a comparable EV medium sedan.
- Electric vehicles delivered the lowest fuel costs by far, with charging costing 66% to 70% less than gasoline across the categories studied. But those savings were frequently outweighed by higher depreciation, fees and finance costs — EV medium sedans cost 29.1% more annually to own than their gas-powered counterparts.
- Hybrids came out as the most consistent value, combining meaningful fuel savings with smaller ownership-cost tradeoffs. They cost less annually than gas-powered models in medium sedans, compact SUVs, medium SUVs and pickup trucks alike.
What it means for buyers
Vehicle category made a bigger difference than powertrain alone in some cases: half-ton pickup trucks cost $1.10 per mile to operate — 48 cents more than small sedans — adding an average of $7,191 to the annual cost of ownership.
AAA’s advice for buyers: build a full monthly and annual budget that includes both ownership and operating costs before purchasing; negotiate the vehicle price, finance rate and trade-in value as three separate conversations rather than one bundled deal; and get pre-approved for financing through a bank, credit union or AAA before discussing loan terms with a dealer.
AAA’s full Your Driving Costs calculator lets shoppers compare ownership costs by vehicle category, powertrain, location and driving habits, alongside other tools including the AAA Car Guide, AAA’s Car Buying Program, an EV 101 Digital Buyer’s Guide, and a Repair Cost Calculator for AAA Approved Auto Repair facilities.
The analysis estimates ownership costs over five years and 75,000 miles of driving across seven vehicle categories and 34 top-selling models, evaluating fuel, maintenance, repair and tire costs, licensing and taxes, depreciation and finance charges. The EV and hybrid comparison specifically covers four categories — medium sedans, compact SUVs, medium SUVs and pickup trucks — and AAA notes its results shouldn’t be directly compared to the broader study’s category averages.
