
It’s going to cost more for those looking to buy a new car this year. Finance costs on new car purchases have jumped 24% in 2019, according to new AAA research, pushing the average annual cost of vehicle ownership to $9,282, or $773.50 a month. That’s the highest cost associated with new vehicle ownership since AAA began tracking expenses in 1950 and a reminder that the true costs of owning a vehicle extend far beyond maintenance and fuel.

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Average fuel cost rose to 11.6 cents per mile, 5% higher than last year. The per-mile increase was driven by gasoline prices, which are up 15.6 cents per gallon over the timeframe covered by the study. Electricity prices for EV charging also rose 0.1 cent per kilowatt-hour (0.08%), but the market share of the electric vehicles in the study (0.48%) makes the effect of this increase on the overall average fuel cost negligible. Fuel costs vary widely by vehicle type, ranging from a low of 3.65 cents per mile for electric vehicles, to 15.67 cents per mile for pickup trucks.
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Average maintenance and repair costs climbed marginally to 8.94 cents per mile, up 8.9% over last year. The increase was fueled by the growing complexity of vehicle systems and an updated methodology for calculating repair costs.
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Electric vehicles had the lowest maintenance and repair costs – 6.6 cents per mile – while medium-sized SUVs had the highest at 9.6 cents per mile.
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The cost of licenses, registration fees and taxes rose $14 to $753 per year, an increase of 1.9%
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Average annual costs by new vehicle category (based on 15,000 miles driven annually):
New Vehicle Category
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Annual Cost
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Small Sedan
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$7,114
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Hybrid
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$7,736
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Electric
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$8,320
|
Small SUV
|
$8,394
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Medium Sedan
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$8,643
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Medium SUV
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$10,265
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Large Sedan
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$10,403
|
Pickup
|
$10,839
|
The AAA study gives the public a window into the true costs of owning and operating a vehicle by quantifying expenses that owners may overlook. Additional information and details can be found at AAA.com/YourDrivingCosts.
After purchasing a home, buying a vehicle is probably a consumer’s second biggest expense. Research is key, as is acting carefully and methodically. AAA.com/autobuying is a comprehensive resource that can help make the process more manageable. Here are some tips to keep in mind:
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Know what you can afford to spend before going to the dealership. Determine your budget and stick to it.
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Minimize total finance costs by getting the shortest loan term you can afford.
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Seasonally, the best times to buy tend to be the last two weeks of December – when dealers are trying to hit year-end goals – and, to a lesser extent, between July and October. That’s when dealers are trying to clear lots to make way for the next year’s models.
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The best time to buy is the end of the month because sales managers like to build campaigns around monthly quotas. Shop toward the end of the month and you’ll find a dealer may offer additional price concessions.
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Consider a late-model, gently used vehicle. New cars lose around 20% of their value the moment they leave the lot, so you can save big if you look for a car that’s a year or two old. Your insurance costs could be less, too.
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If you belong to AAA or a similar organization, you may qualify for dealer discounts. Dealer networks sometimes agree to limit profits when selling to club members, though the deals will be limited to certain makes and models.