Depreciation is the biggest bill.
Where the average $12,863 a year goes
AAA averages 34 top-selling 2026 models across seven vehicle types, owned for five years and 75,000 miles.1 Here is its weighted average, split into its six cost categories.3
The single largest cost: what the car loses between purchase and its estimated trade-in value after five years.
17.32¢ a mile. AAA priced regular gas at $4.152 a gallon (12 months ending May 2026) and home charging at 18¢ per kWh.
Full coverage for a driver under 65 with 6+ years of experience and no accidents, living in a city or suburb. Get your own quote.
11.73¢ a mile, including scheduled service, wear items, one set of tires and a comprehensive extended warranty.
Interest on a 5-year loan with 15% down at the national average rate, with taxes and first-year registration financed.
Taxes and fees paid at purchase plus yearly registration, averaged nationally. Your state’s taxes and fees may differ.
Fuel and maintenance are AAA’s per-mile figures × 15,000 miles, so the parts add up to within a dollar of AAA’s $12,863 total. Sources: AAA Your Driving Costs 2026 news release, fact sheet and brochure.123
Per mile, the type of car and the price matter most
Most ownership costs are fixed, so the fewer miles you drive, the more each mile costs. AAA’s 2026 average for a new vehicle:2
- Vehicle type is a big lever. AAA found half-ton pickups cost $1.10 a mile, 48 cents more than small sedans, which adds an average of $7,191 a year.1
- Real prices run higher than AAA’s sample. The average MSRP of the cars in AAA’s study is $39,376,2 but the average new vehicle actually sold for $50,562 in September 2026, before taxes and fees, according to Kelley Blue Book.4 A pricier car means more depreciation, interest and tax.
- Used is cheaper up front. The average used-vehicle listing price was $27,235 in September 2026 (Cox Automotive/vAuto).5 Used loans usually carry higher rates, so compare the whole cost (step 3).
- EV, hybrid or gas? AAA found EV charging cost about 66%–70% less than gas, but higher depreciation, fees and finance costs often outweighed the savings. Hybrids were the most consistently lower-cost alternative to gas in its comparison.1
What the averages leave out
National averages can’t see your street, your state or the dealer’s finance office. Budget separately for:
- Parking and tolls. Not in AAA’s six categories. Add yours in the calculator under “More inputs.”
- Sales tax at purchase. AAA spreads purchase taxes and fees across five years, but you pay them up front or finance them, and they depend on where you register the car.2
- Dealer add-ons. GAP insurance, window etching, and extended warranties or service contracts are extras you buy and finance with the car. The FTC says it’s OK to say no, and it’s never OK for a dealer to charge you for add-ons without your consent.16
- GAP insurance. It covers the difference between what you owe and what your insurer pays if the car is totaled or stolen. The CFPB says prices vary widely, your own insurer may sell it, and financing it adds interest.13
- Rolled-in old debt. If you owe more on your trade-in than it’s worth, rolling that balance into the new loan makes the new loan more expensive.12
- Repairs after the warranty. AAA’s maintenance figure is for a new car and includes a comprehensive extended warranty.2 Experian notes that long-term ownership can lead to higher repair costs.6
Run your own 5-year cost.
The 5-year cost calculator
The starting numbers are editable examples based on recent national averages (listed under the calculator). Swap in your own quote, rate and insurance price. It uses the same approach as AAA: depreciation, finance charges, fuel, insurance, maintenance, and taxes and fees over five years.
What you don’t know you don’t know.
Your credit score can double your rate
Lenders use risk-based pricing: different borrowers get different rates based on how likely the lender thinks they are to repay.15 Experian’s data for the second quarter of 2026 shows how wide the gap is:6
| Credit score (VantageScore 4.0) | New car APR | Used car APR |
|---|---|---|
| Super prime (781–850) | 4.41% | 6.29% |
| Prime (661–780) | 6.15% | 8.81% |
| Near prime (601–660) | 9.71% | 13.93% |
| Subprime (501–600) | 13.52% | 19.10% |
| Deep subprime (300–500) | 16.11% | 21.62% |
- Type your tier’s rate into the calculator above. It also shows what one extra percentage point would cost on your loan.
- Get preapproved by a bank or credit union before the dealership. The CFPB says showing those offers can get you competitive quotes, and the first quote may not be the lowest rate you qualify for.11
Long loans: a lower payment, more interest, and a car worth less than you owe
The CFPB says a longer loan can reduce your monthly payment, but you’ll pay more interest and risk negative equity (owing more than the car is worth) for longer.11 Long loans are now common:
- A record 25.5% of financed new-vehicle purchases in Q3 2026 had terms of 84 months or longer. The average new-car buyer financed $44,664 at 7.0% APR and is on track to pay $9,938 in interest (Edmunds).7
- In Q2 2026, 29.6% of trade-ins toward new vehicles had negative equity, averaging $6,884. Buyers who rolled it in averaged $944 a month and a projected $16,270 in interest (Edmunds).8
- Before trading in, get your loan’s payoff amount (it can differ from the balance on your statement) and compare it with the car’s trade-in value.12 The calculator above compares what you’d still owe at year five with the car’s estimated value.
The 20/4/10 rule: a common rule of thumb, not a law
You will often see this guideline for keeping a car affordable. No regulator or lender requires it, and most buyers today fall outside it: the average new-car loan runs about 70 months.7 Treat it as a gut check, not a requirement.
Buying vs. leasing: lower payment, different trade-offs
With a lease you pay for the car’s depreciation over the lease term instead of its full value, which is why payments are usually lower. In Q2 2026, 23.75% of new vehicles were leased, and the average lease payment was $617 versus $765 for a new-car loan (Experian).6
Buying
- You own the car and build equity once it’s worth more than you owe.
- No mileage limits. After payoff, no payment at all.
- Older cars can need more repairs.
Leasing
- Lower monthly payment and a newer car every few years.
- No equity, mileage limits and restrictions on modifications.
- Read the fine print for end-of-lease charges.
Source: Experian, Auto loan rates and financing (pros and cons of financing vs. leasing).6
Questions to ask at the dealer
Your bargaining power is greatest before you’re on the lot.16 Bring these:
- “What’s the out-the-door price, in writing?” That is the total before financing, including taxes and fees, so you can compare dealers apples to apples.16
- “Can we settle price, trade-in and financing separately?” AAA advises keeping the vehicle price, finance rate and trade-in value as separate negotiations.1
- “Can you beat my preapproval?” Show the rate your bank or credit union offered.11
- “What’s the APR, the term and the total of all payments?” The CFPB defines total cost as principal, interest and any down payment or trade-in over the life of the loan. Compare that, not just the monthly payment.15
- “Which add-ons are in this contract, and are any required?” Extended warranties, GAP and credit insurance are generally optional. If you’re told one is required, ask where the contract says so. You can also cancel an optional add-on during the loan.14
- “Is there a prepayment penalty?” If there is, you can negotiate to have it removed.11
- “What incentives apply to this car?” Kelley Blue Book estimated the average incentive at $3,359 (6.6% of the average transaction price) in September 2026.4
Sources
- AAA: New Vehicle Ownership Costs Hit $12,863 Annually (Your Driving Costs 2026 news release, Sept. 15, 2026)
- AAA: Your Driving Costs 2026 fact sheet (PDF)
- AAA: Your Driving Costs 2026 brochure, 2026 weighted average table (PDF)
- Kelley Blue Book / Cox Automotive: September 2026 average transaction price report (Oct. 13, 2026)
- Cox Automotive: Auto Market Snapshot, average used listing price, September 2026 (vAuto)
- Experian: Auto loan rates and financing for 2026 (State of the Automotive Finance Market, Q2 2026 data)
- Edmunds: New-car financing records pile up in Q3 (Oct. 1, 2026)
- Edmunds: Q2 new-vehicle purchases with negative equity trade-ins (July 16, 2026)
- U.S. EIA: Gasoline and Diesel Fuel Update (U.S. regular, week of Oct. 12, 2026; released Oct. 14, 2026)
- U.S. EPA: Highlights of the Automotive Trends Report (2025 report, model year 2024 data)
- CFPB: What things can I negotiate when shopping for a car or auto loan?
- CFPB: Should I trade in my car if it’s not paid off?
- CFPB: What is Guaranteed Asset Protection (GAP) insurance?
- CFPB: Am I required to buy an extended warranty, GAP or credit insurance to get an auto loan?
- CFPB: Auto loan key terms
- FTC: Buying a car or truck? (consumer alert, July 18, 2022)
- IRS: Standard mileage rates (2026)
Sources checked October 16, 2026. Prices, rates and costs change, and many vary by state, lender, vehicle and driver.
Educational only, not financial, tax, or legal advice. This guide summarizes national averages and general U.S. consumer guidance. Your loan contract, insurance quote and state taxes control your real costs. Resale values are estimates and can change with the used-car market. The calculator runs in your browser, and the numbers you type never leave your device.