BOISE – Before you sign on the dotted line and drive away with your new dream car, AAA reminds you to consider the total costs of owning and operating it.

Each year, AAA publishes the Your Driving Costs (YDC) study to help prospective vehicle owners make informed decisions.  In this year’s analysis, the total cost of ownership rose slightly to just under $12,300 per year, about $115 more than a year ago.

For the study, AAA calculated averages for 45 vehicles across nine categories, ranging from small sedans to ½ ton pickup trucks.  Factors that were considered include vehicle price, depreciation, fuel prices, maintenance and repair costs, insurance rates, license and registration, taxes, and finance charges.

“Whether a person decides to buy new or used, it’s important to get the right vehicle and have a clear understanding of what it will cost,” says AAA Idaho public affairs director Matthew Conde.  “With AAA’s online calculator tool, you can easily find Idaho-specific information to help you make a wise and budget-friendly purchase.”

AAA’s study estimates the ownership and operation of a new car for five years and 75,000 miles.

Your Driving Costs by Vehicle Category

From least expensive to most expensive for the vehicles studied:

  • Small sedan (59.24 cents/mile) – a great option for first-time buyers
  • Hybrid (66.07 cents/mile) – seen as a great balance between fuel economy and lower maintenance costs
  • Subcompact SUV (67.51 cents/mile) – part of the ongoing shift from sedan purchases
  • Medium sedan (70.38 cents/mile) – Middle of the pack for overall costs, but most expensive maintenance costs
  • Compact SUV (71.04 cents/mile) – A popular choice among today’s car buyers
  • Mid-size pickup (82.44 cents/mile) – 4th highest overall driving cost, second lowest to insure
  • Medium SUV (83.84 cents/mile) – Second most expensive overall to own and operate
  • Electric vehicle (84.69 cents/mile) – Least expensive for maintenance and repairs, highest for depreciation
  • Half-ton pickup ($1.10/mile) – Highest overall costs

“If you think of a vehicle as you would a tool, your best bet is to buy the one that will do the job,” Conde said.  “If you have a complete picture of the total costs, you’ll make a better decision.”

2024 Vehicle Ownership Costs – Where Does the Money Go?

The biggest expense associated with owning a new car is depreciation, which takes effect the moment you leave the lot.  A breakdown of this year’s average expenses includes the following:

Finance charges, the cost of obtaining funds from a lending institution, jumped by an average of 6%.

The sales-weighted average MSRP (sticker price) for the vehicles researched is $38,883, just slightly higher than the vehicles studied last year.

AAA selected popular vehicles among the different categories to establish a baseline, but researching a specific vehicle with the YDC calculator tool will be even more precise, Conde said.

AAA Car Buying Tips

  • Set a budget and stick with it.
  • Ask friends and family about their vehicle experiences, and research online.
  • Remember that the vehicle price, financing, and vehicle trade-in are three separate negotiations.  Treat each as a separate component.
  • Check with your lending institution and shop for different interest/borrowing rates.
  • Take a test drive and ask about safety features and advanced driving assistance systems.
  • Explore the option of a used vehicle if you’d like to avoid some effects of depreciation.
  • Consider the total cost of ownership, including car payments, fuel requirements, repairs and re-calibration of advanced technology, and higher insurance premiums, in your budget.  Remember, if you have a car loan, you’ll likely need to pay for comprehensive insurance.

More AAA Resources

In addition to the Your Driving Costs calculator, potential vehicle owners may consult the AAA Car Guide, the EV 101 Buyer’s Guide, and the AAA Repair Cost Calculator.