AAA Says This New-Car Ownership Cost Averages $4,422 A Year - And It's Not Gas

It's no surprise that buying a new car is expensive, but you might not realize the factors that can impact your wallet the most. Every year, AAA releases its Your Driving Costs (YDC) survey, and in 2026 the company found that drivers that spend 15,00 miles on the road annually will spend an average of $12,863 per year, or $1,072.91 per month, on a 2026 vehicle. This figure includes both annual expenditures — such as fuel and maintenance — as well as less upfront costs like registration fees and financing costs. That said, the largest cost category was actually depreciation.

In 2026, AAA found that the average vehicle depreciates $4,422 per year. That's nearly double each of the seven other expense categories that AAA factored in. The only expense to exceed even half of depreciation's value loss was fuel, with the average driver reportedly spending around $2,595 per year, assuming they drive 15,000 miles in that time.

Of the seven vehicle types analyzed in 2026, AAA found that small sedans depreciate the least — at $2,745 per year. However, medium sedans actually outpaced subcompact SUVs at $3,664 and $3,075, respectively — though since there are several SUVs that retain half their value after 5 years, that's not particularly surprising. Meanwhile, half-ton pickup trucks skew the industry-wide average, losing $6,248 of value in a single year — over $1,300 more than any other segment. However, it's not just size that can impact a car's value retention.

There were some best-selling electric vehicles (EV) and hybrid models included in AAA's calculations, and the analysis of these model types can provides valuable insight into whether EVs actually save drivers money. When looking at the costs associated with owning EVs and hybrids across four vehicle segments, AAA reports EVs depreciate faster than the average car across the board. Electric medium sedans lose $6,786 in value in a year, while electric compact SUVs lose $5,298, electric medium SUVs lose $7,077, and electric pickup trucks lose $8,624. However, hybrids are less predictable: While both medium sedans and compact SUVs with hybrid engines depreciated faster than cars with combustion engines in their sectors, both hybrid medium SUVs and pickup trucks actually depreciated more slowly than their gas-powered alternatives.

AAA's study also suggests that how much you drive can influence how much value your vehicle retains: On average, the study finds vehicles driven 10,000 miles per year depreciate at a rate of $419 less per year. Meanwhile, cars driven 20,000 miles in the same time span depreciate $484 more than average. With that said, exactly how much you drive your car could make a significant difference to your eventual bottom line on the resale market.