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Total cost of car ownership to exceed $10,000 in 2022

According to a study by the American Automobile Association (AAA), the annual cost of owning a new car has exceeded $10,000. Owning and operating a brand new car in 2022 will cost you $10,728 per year or $894 per month.

The annual driving cost study shows that the average annual cost in 2022 will be $10,728 or $894 per month. This is compared to the average annual cost of $9,666 or $805.50 per month in 2021 A considerable cost increase. The most important factor driving the price tag this year is fuel.

Costs in 2022 Average annual costs in 2021 of $9,666 or per At $805.50 a month, the number of people owning and operating a new car has grown by 11% in just one year. Fuel prices have been the main factor behind the increase in the average annual price tag this year.

The study evaluated 9 vehicle classes, including 45 models, to help determine the average annual operating and owning costs for new vehicles. Factors weighed in the study included fuel, maintenance/repair/tire costs, insurance, license/registration/taxes, depreciation and finance charges.

In 2022, fuel prices will average 17.99 cents per mile or $3.999 per gallon. Since the beginning of March, gasoline prices have climbed sharply and, as a result, the cost of vehicle ownership has increased accordingly. Due to the high volatility of fuel costs, car buyers are weighing other ways to budget for the cost of vehicle ownership. One way they do this is by exploring electric vehicles as an option for their next car purchase to save on fuel costs.

Cost of car ownership

The price of $10,728 per year is from a five-year ownership period, the vehicle is driven 15,000 miles per year, and the owner will pay some fees. These include annual average depreciation costs ($3,656); loan financing ($658); fuel (17.99 cents per mile); insurance ($1,588); licenses, registrations, and taxes ($675); 9.68 cents per mile).

“High gas prices have not only changed Americans’ driving habits, they have also changed Americans’ perceptions of future car purchases. While sticker price remains a focus for new car buyers, consumers are also paying more attention to fuel , maintenance and insurance,” said Gene LaDoucer, AAA Regional Director of Public Affairs.

Which car has the lowest total cost of ownership?

In terms of lower cost, EVs seem to be easier to cut costs and therefore more attractive to potential car buyers. For example, an EV owner will spend about $4.00 per mile Divided into charging the car at home, while the owner of a gasoline-powered car will spend an average of 18.4 cents per mile to refuel. Assuming two people drive 15,000 miles a year, it would cost about $2,700 a year to fuel a gasoline-powered car and $600 a year to charge an electric car. Electric vehicles can save owners about $2,100 per year compared to small sedans.

In addition to saving fuel costs, electric vehicles have the lowest maintenance, repair and tire costs. This is because gas-powered vehicles require additional maintenance, such as changing the oil, changing the air filter, and checking mechanical parts that are not present in electric vehicles. In addition, electric vehicles are the least expensive because the federal and state offer subsidies to buyers of new electric vehicles as purchase incentives.

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