That midsize sedan will cost you nearly $9,000 a year to keep fueled, licensed, insured and maintained.
Sure, if money is the object you’ll likely find a dealer offering a $149 lease special on some slow-selling model. But just because you get off cheap up front doesn’t mean you’re in for a bargain the rest of the way. The fact is, buying, owning and operating a car is expensive – and getting more so every year.
And that’s not just because of the cost of fuel, which have risen an average 14.8% over the last year. The cost of replacement tires have jumped 4.2%, according to the 62nd annual “Your Driving Costs” survey from AAA. And insurance has gone up an average 3.4%.
Overall, there’s been a less extreme 1.9% increase in the cost of auto ownership since last year, reports the AAA, which works out to $8,946 per annum when you work in that monthly payment, fuel, maintenance and insurance fees.
“The average driving cost for 2012 is up due to relatively large increases in fuel and tire costs, and more moderate increases in other areas,” said John Nielsen, AAA director of Automotive Engineering and Repair. “Those increases were offset by a decrease in depreciation.”
The cost of gasoline – or diesel – has become a steadily larger factor in the cost of automotive ownership over the years, and it’s anyone’s guess how much more it will rise – though the pump price has leveled off in recent weeks. But it’s still up about 16.6% since a year ago – working out to an average 14.2 cents per mile. Offsetting that rise is the steady increase in the fuel economy of the typical car on U.S. roads.
(Average fuel economy for new cars sold in April drops slightly. Click Here for that story.)
Raw material costs have been rising only slightly less aggressively than the price of petroleum lately. That’s driven up new vehicle prices and also impacted replacement parts and components. Tires, in particular now cost 4.2% more than a year ago. Expect wear-and-tire to translate into a penny a mile when it’s time to replace that rubber.
The average motorist, according to the AAA study, is now spending about $1001 a year on insurance – though that will vary widely depending on driving record, location, vehicle and other factors. Nonetheless, the typical motorist is paying 3.4%, or $33, more than a year ago.
Other maintenance costs, meanwhile, have risen by an average 0.7% to 4.47 cents per mile for the typical sedan. Blame higher oil prices, for one thing, both natural and synthetic. And today’s more complicated cars are requiring more time in the service bay, which is another factor in rising prices.
On the positive side, AAA’s Nielsen notes that motorists are actually being cut a break on depreciation costs.
“Depreciation costs were up slightly in 2011, but for 2012 the trend has reversed with depreciation falling across the board by nearly 5%,” the AAA reports. “This change may be a consequence of reduced new car sales over the past few years, which has resulted in a relative shortage of good used cars on the market, driving up their value. This is good news for those in the resale market as their vehicles will retain a greater portion of their purchase cost.”
The organization began its annual survey in 1950, just as auto industry production got seriously underway again after the war years. Back then, a motorist was expected to clock about 10,000 miles annually – at a cost of 9 cents a mile, with gasoline flowing into your tank at just 27 cents a gallon.
According to the latest “Your Driving Costs” study, Americans are expected to log an annual 15,000 miles, with the average car costing $8,946, all told, or 59.6 cents a mile. Of course, prices will vary depending upon what you’re driving. The AAA says a compact model will cut your yearly bill to an average $6,735. But large four-wheel-drive SUVs will require an annual budget of $11,360.