The average cost to own and operate a new vehicle has reached $12,863 annually, or about $1,071.92 per month, according to AAA’s 2026 Your Driving Costs analysis.
The annual study examines the full costs associated with vehicle ownership, including fuel, depreciation, financing, taxes and fees. This year, AAA also incorporated select electric vehicles and hybrids into vehicle categories that previously consisted of traditional gasoline-powered models.
“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.”
AAA estimated the annual cost of new vehicle ownership at $11,577, or $964.78 per month, in 2025. However, the organization cautioned that methodology changes mean the 2026 results are not directly comparable with last year’s estimate.
Depreciation remains the largest individual cost of vehicle ownership, according to the analysis. New vehicles lose a weighted average of $4,422 in value annually.
AAA found that the sales-weighted average manufacturer’s suggested retail price of new vehicles included in the analysis was $39,376.
Fuel and energy costs varied significantly by vehicle type. Gasoline used by nearly all vehicles in the study averaged $4.152 per gallon at the time of the analysis, while electricity for home EV charging averaged 18 cents per kilowatt-hour.
EV charging costs were about 66% to 70% lower than fuel costs for comparable gasoline-powered vehicles across the categories studied. AAA found, however, that higher depreciation, fees and financing costs often outweighed those savings.
For example, gasoline-powered midsize sedans cost an average of $10,582 annually to own, $3,080 less than comparable electric midsize sedans. AAA said electric midsize sedans had about twice the depreciation of gasoline models, contributing to annual ownership costs that were 29.1% higher.
Hybrids were the most consistently lower-cost alternative to gasoline-powered vehicles in the categories AAA compared. Hybrids had lower annual ownership costs than gasoline models among midsize sedans, compact SUVs, midsize SUVs and pickup trucks.
Vehicle size also had a significant effect on overall costs. AAA found that half-ton pickup trucks cost $1.10 per mile to operate, 48 cents more per mile than small sedans, amounting to an average difference of $7,191 annually.
AAA recommends that consumers consider both monthly and annual ownership and operating expenses before purchasing a vehicle and evaluate factors beyond fuel economy, including depreciation, financing and fees.
AAA’s Your Driving Costs calculator allows consumers to compare estimated costs based on vehicle category, powertrain, location and driving habits.
