The cost of owning a car increased to $12,297 per year, or $1,024.71 monthly, according to the annual Your Driving Cost study from the American Automobile Association. That’s $115 more than in 2023. Financing costs and depreciation drove the increase. 

“Buying a new car can be exciting, but consumers should fully understand all the costs of owning and operating a new vehicle from purchase to resale,” AAA Director of Automotive Research Doug Brannon said in a statement. 

For its study, AAA looked at the bestselling five models in nine vehicle categories. Small sedans were the least expensive to own overall, at 59.24 cents per mile, followed by hybrids at 66.07 cents per mile and subcompact SUVs at 67.51 cents per mile. 

The most expensive vehicles to own were half-ton pickup trucks ($1.10 per mile), electric vehicles (84.69 cents per mile) and medium-size SUVs (83.84 cents per mile).

Medium-size sedans were the most expensive to maintain. While EVs had the lowest fuel and maintenance costs of any vehicle type, they were the second most costly to maintain because of high levels of depreciation.

In 2024, the average vehicle lost $4,680 in value from depreciation and cost $1,332 per year to finance and $1,715 annually for insurance.

AAA noted that larger cars loaded with new technology have increased new vehicle prices, leading to greater amounts of depreciation. The average transaction price of a new car sold in July was $48,401, according to Cox Automotive. 

Higher sticker prices have a direct impact on finance costs, which were 6% higher in 2024 compared with last year, the study said. The average auto loan rate for a new car is currently 9.58%.