Cost of Vehicle Ownership Falls to 6 Year Low

Accident on a roadThe annual cost to own and operate a vehicle is now the lowest it has been in six years, big part in thanks to the low fuel prices. According to AAA, the average cost of ownership in 2016 is $8,558. This breaks down to roughly 57 cents per mile driven.

The items that factor into the cost of ownership include fuel, insurance, maintenance, depreciation, license, registration, taxes, finance charges, and tires. You can find more specific information for each type of vehicle in the table below.

Based on 15,000 miles Small Sedan Medium Sedan Large Sedan Sedan Average SUV (4WD) Mini-van
Annual Total Cost $6,579 $8,604 $10,492 $8,558 $10,255 $9,262
Annual Cost Per Mile $0.439 $0.574 $0.699 $0.571 $0.684 $0.618

It’s interesting to note that it actually costs less to own minivan than a large sedan or SUV. This is something to consider, especially if you’re considering purchasing a new car. Minivans offer roughly the same cargo space and can carry more passengers.

To get an even clearer idea of what your car is costing you, check out these average annual prices for varying factors:

  • Fuel – 8.45 cents per mile/$1,267.50 per year
  • Insurance – $1,222 per year
  • Depreciation –  $3,759 per year
  • Maintenance – 5.28 cents per mile/$792 per year
  • License/Registration/Taxes – $687 per year
  • Finance Charges – $683 per year
  • Tires – 1 cent per mile/$150 per year

This information comes from AAA’s annual Your Driving Costs study, which AAA has been publishing since 1950. That year, driving a car 10,000 miles per year cost 9 cents per mile, and gasoline sold for 27 cents per gallon.