SOUTHFIELD, Mich. (WXYZ) — If you are shopping for a new vehicle, AAA says the sticker price is only part of the cost drivers need to consider.
AAA’s 2026 Your Driving Costs study finds the average annual cost to own and operate a new vehicle is $12,863, or $1,071.92 per month.
Watch Alicia Smith's video report below:
The study looks beyond the monthly payment and includes:
- Depreciation
- Finance charges
- Fuel
- Insurance
- License, registration and taxes
- Maintenance, repair and tires
AAA says the costs for each of those categories are an average calculated over five years and 75,000 miles.
The average weighted manufacturer’s suggested retail price of a new car in the study is $39,376.
Metro Detroit drivers told 7 News Detroit they are feeling the pressure at the pump and in their overall budgets.
“Painful,” said Floyd Harris of West Bloomfield while filling up his tank. “I’m retired right now. So, I’m on a fixed income. So, every penny counts with me.”
Joshua Landmesser of Northville is in the market for a new vehicle and told me he's considering a small car or EV. "Because (of) the gas prices with my long travel commute," he explained.
Veronica Smith of Brighton said car buyers should look closely at the full cost before committing.
“Gas, insurance — it all adds up,” Smith said. “Some people don’t really think about it. They just see a car and are like oh yeah, I can afford that payment. But there’s other costs associated with it.”
Hybrids, EVs and the real-cost comparison
The study also compares gas, hybrid and electric vehicles in several popular categories.
Adrienne Woodland, a spokesperson for AAA The Auto Club Group, said one of the most surprising findings is that electric vehicles are not always far cheaper overall once the full ownership picture is considered.
“EVs offer about 66% to 70% lower fuel costs compared to traditional gas vehicles. However, those savings are often outweighed by higher depreciation, higher fees and higher costs,” Woodland said.
Among the highlights in the AAA study, medium sedan hybrids had the lowest annual cost at $10,204 per year while electric pickup trucks had the highest annual cost at $17,414 per year.
What drivers should do before buying
AAA recommends shoppers look beyond the monthly payment and compare long-term ownership expenses before buying a vehicle. That means budgeting for fuel or charging, insurance premiums, maintenance and repair costs, registration fees, finance charges and depreciation.
Drivers can estimate ownership costs for a specific vehicle using AAA’s Your Driving Costs calculator.
