2026 car ownership cost averages $12,863 per year, or $1,071.92 per month, in AAA’s latest Your Driving Costs analysis. The September 15 report estimates five-year, 75,000-mile costs for 34 top-selling models across seven vehicle categories.
That figure is a study average, not a bill every owner will pay. Location, purchase price, financing, annual mileage, insurance, resale value and driving conditions can move a household’s total substantially.
Quick answer: AAA identifies depreciation as the largest average ownership expense at $4,422 per year. Its 2026 methodology includes fuel or charging, maintenance, repairs, tires, finance charges, insurance-related categories, taxes and fees. Buyers should calculate their own costs rather than adding $1,072 blindly to a budget.
2026 Car Ownership Cost: 7 Critical Findings
1. Depreciation remains the largest cost
AAA calculates weighted average depreciation of $4,422 annually. A discount at purchase helps, but future resale value can matter more than a small fuel-economy difference.
2. The average MSRP was $39,376
AAA used a sales-weighted MSRP, while incentives and negotiated prices can alter financing and depreciation. Compare written out-the-door prices, not sticker prices alone.
3. Hybrids performed consistently well
In the categories AAA compared, hybrids cost less annually than gasoline models in medium sedans, compact SUVs, medium SUVs and pickups. Results do not prove every hybrid is cheaper than every gas vehicle.
4. EV fuel savings did not always win
AAA found EV charging costs 66%-70% below gasoline fuel costs in compared categories, but higher depreciation, fees and finance costs could offset savings. Home charging and local rates also matter.
5. Vehicle category changes the result
AAA estimates half-ton pickups at $1.10 per mile, 48 cents above small sedans, a $7,191 annual difference in its model. Buying more vehicle than needed can dominate the budget.
6. Financing must be separated from price
APR, term, amount financed and down payment change total interest. AAA advises keeping purchase price, finance rate and trade-in value as separate negotiations and getting preapproved.
7. The 2025 comparison needs caution
AAA says methodology updates make the 2026 result not directly comparable with its 2025 estimate. Reporting the difference as pure inflation would misrepresent the study.
What the AAA Estimate Includes and Misses
The analysis models personal ownership over five years and 75,000 miles. It evaluates fuel, maintenance, repair and tire costs, license, registration and taxes, depreciation and finance charges. Actual insurance premiums, parking, tolls, crashes and household circumstances can differ.
The EV and hybrid comparison covers a smaller set of categories than the overall analysis, so AAA warns against treating the subsets as directly equivalent. Use the report as a framework, then replace assumptions with local quotes.
Build a Personal Car Ownership Budget
Start with the out-the-door price and likely resale value. Add APR and total interest, insurance quotes, expected annual miles, local fuel or electricity prices, scheduled maintenance, tire replacement, registration, taxes and a repair reserve.
Carvul’s loan preapproval guide can structure financing comparisons. A well-inspected used vehicle may lower depreciation, but condition risk matters; use the used-car inspection checklist before assuming used automatically means cheaper.
How to Compare a New Car With a Used Alternative
A used vehicle can reduce the purchase price and early depreciation, but it may introduce repair risk, shorter warranty coverage and a higher interest rate. Compare both choices over the same ownership period and annual mileage. Add a realistic inspection and repair reserve instead of assuming the used option will remain trouble-free.
For a new vehicle, compare factory warranty, included maintenance and expected resale value. For used, request service records, check recalls and obtain an independent inspection. Compare total expected cost for the transportation you need, not simply new versus used.
Frequently Asked Questions
How much does it cost to own a new car in 2026?
AAA’s study average is $12,863 annually. Your result can differ materially.
What is the largest ownership cost?
AAA identifies depreciation, averaging $4,422 per year in the study.
Are hybrids always cheaper?
No. AAA found favorable results in its selected comparison categories, but price, depreciation, finance and usage determine each vehicle’s outcome.
Bottom Line
The 2026 car ownership cost report reinforces that payment and fuel are only part of the bill. Compare depreciation, financing, insurance and vehicle category before choosing a powertrain or accepting a monthly payment.
Source reviewed September 24, 2026: AAA Your Driving Costs release and methodology summary. Images are Carvul editorial illustrations.