ATLANTA – Driving costs have declined $719 in annual vehicle ownership compared to a year ago, according to a new AAA analysis.
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For over 70 years, AAA’s Your Driving Costs analysis has offered valuable insights into vehicle ownership expenses. This year’s analysis shows that the total cost of owning and operating a new vehicle is $11,577, or $964.78 per month, a $719 decline from 2024.
Factors contributing to this decline include depreciation, lower finance charges, reduced fuel prices, and a shift towards more affordable vehicle options. AAA advises potential buyers to consider these costs to choose the best vehicle type and model for their budget.
“It might be tempting to rush to the dealer for a new car when you notice a drop in ownership costs this year,” said Greg Brannon, AAA’s director of automotive research. “However, consumers should factor in all the expenses involved before making any commitments.”
Depreciation, which is the difference between a car’s purchase price and its resale value, is the most significant cost of vehicle ownership. This year, depreciation has decreased, with vehicles in the YDC study losing an average of $4,334 in value per year compared to $4,680 annually in 2024.
Categories driving lower costs this year include:
Finance Charges – Estimated finance costs have decreased to $1,131 in 2025, down 15 percent compared to $1,332 in 2024. *Please note: Sticker price decrease is partially due to new vehicles in YDC.
Fuel Prices – The average fuel cost dropped to 13.00 cents per mile, a 12.8% decrease from last year, while regular grade gasoline for YDC vehicles averaged $3.151 per gallon, down from $3.539. Meanwhile, electricity prices for charging electric vehicles rose slightly to 16.7 cents per kilowatt hour, up from 15.9 cents in 2024.
The Right Vehicle – Your Budget
Choosing the vehicle that suits your needs is important, as it can lead to significant savings over time. For example, while a pickup truck is ideal for heavy-duty hauling and towing, it comes at a steep cost, averaging an additional $6,402 per year compared to a small sedan, which operates at just 55.87 cents per mile—43.3 percent less than a pickup. This comparison highlights the importance of selecting a vehicle based on actual transportation needs.
Similarly, according to this year’s AAA EV survey, consumers are increasingly drawn to electric vehicles (EVs) for their gas savings and lower maintenance costs, with EVs having the second-lowest maintenance expenses among all vehicle categories. Hybrid options are also appealing, offering the lowest maintenance fees while sharing similar lower fuel cost benefits, even considering the national average electricity price of 16.7 cents per kilowatt-hour (kWh). Ultimately, whether opting for a pickup, a small sedan, or an EV, weighing these factors carefully to make a well-budgeted decision can lead to ownership savings.
Comparison of EV and Hybrid Ownership Costs to Gas-Powered
The primary factor affecting the cost differences between electric vehicles (EVs) and gas vehicles this year is fuel prices. While EVs remain more expensive in “ownership costs” (depreciation, insurance, fees, and financing), they have lower “operating costs,” particularly in fuel and maintenance. Last year, EV fuel costs were about one-third of gas vehicle costs.
This year, however, gasoline prices have significantly decreased, while electricity prices have slightly increased. Although EVs still offer fuel savings—less than half of gas vehicle costs—this does not sufficiently offset their higher ownership costs. Consequently, EVs are now more expensive overall across all vehicle categories in this study.
AAA continues to expand YDC by comparing top-selling EV and Hybrid models in four popular vehicle categories – medium sedan, compact SUV, medium SUV, and pickup truck. Over the years, automakers have expanded their lineups to include more appealing categories and popular models. Now, with this bonus analysis, consumers have a snapshot of ownership costs for select EV and Hybrid models compared to their gas-powered counterparts.
*Please note: Not all categories and models are available for analysis and cannot be directly compared to the average ownership total. Refer to the methodology for additional background.
Car Buying Advice
Create a monthly or annual budget and factor in ownership and operating costs before purchase.
Keep each transaction and negotiation separate from the other – the cost of the car, the finance rate, and the trade-in value.
Obtain pre-approval from a financial institution (e.g., Bank, Credit Union, AAA, etc.) before discussing finance rates with the car dealer to ensure you get the best lending rate available to you.
There are quite a few options (online and in-store) available to consumers when considering where to buy a used vehicle besides a dealership. Visit your local AAA, which may offer discounts for members.
Additional AAA Support:
Your Driving Costs calculator: Customizable digital tool that offers cost analyses for specific vehicles by category, new and used cars (up to five model years back).
AAA Car Guide: Annual guide that ranks and rates vehicles with the latest automotive technology.
AAA’s Car Buying Program: Comparisons for consumers to use while car shopping and buying.
EV 101 (Digital Buyer’s Guide): Resource and educational guide for consumers to use while electric vehicle shopping and buying.
Repair Cost Calculator: Repair costs breakdown for parts and labor, including AAA member discounts available when visiting AAA Approved Auto Repair facilities.
Methodology and Overall YDC Analysis
AAA uses a proprietary methodology to calculate the costs of owning and operating a new car in the United States. Data is gathered from various sources, including Vincentric LLC, and incorporates standardized criteria to estimate the costs of using a new vehicle for personal transportation over five years and 75,000 miles of ownership. The use of standardized criteria ensures that AAA estimates are consistent when comparing the driving costs of different vehicle types. Actual driving costs will vary based on driving habits, location, operating conditions and other factors.
AAA evaluated nine categories of vehicles – consisting of 45 models – to determine a new vehicle’s average annual operating and ownership costs. AAA selects top-selling, mid-priced models and compares them across six categories: fuel, maintenance/repair/tire costs, insurance, license/registration/taxes, depreciation, and finance charges. The study assumes a five-year ownership period, with the vehicle being driven 15,000 miles/annually (or a total of 75,000 miles).
EV & Hybrid Cost Comparisons
AAA evaluated four categories of EVs and Hybrids – consisting of 11 total models – compared them across six cost categories: fuel, maintenance/repair/tire costs, insurance, license/registration/taxes, depreciation, and finance charges. The study assumes a five-year ownership period, with the vehicle being driven 15,000 miles/annually (or a total of 75,000 miles).
Due to a limited number of models with significant sales available in many vehicle categories, only four vehicle categories were selected (medium sedans, compact and medium SUVs, and pickup trucks) for analysis and comparison to those corresponding ICE categories. Therefore, overall results from the EV/Hybrid analysis cannot be directly compared to the overall results from the regular YDC study.
