(Photo credit: Rev. Xanatos Satanicos Bombasticos (ClintJCL))
By Tara Baukus Mello
If you own your car outright, you might not think it costs you that much to own it, but AAA’s 2013 Your Driving Costs study shows that costs range from nearly $7,000 to more than $11,000 for the average American, depending on the kind of car driven.
What’s more, the cost of owning a car is rising, which means it’s costing you more money to drive your car year after year even though it’s worth less and less.
Taking a look at the 2013 study provides some eye-opening data that may make you think twice about the kind of car you own, your driving habits, and whether you should shop around for auto insurance or the lowest gas prices.
Different car types equal different costs
AAA calculated the average costs for six different car types based on the ownership costs in the study. It found that the average cost of all sedans — the majority of cars on the road — is 60.8 cents per mile or $9,122 annually, based on 15,000 miles of driving. Small sedans cost the least — $6,967 annually. Four-wheel-drive sport utility vehicles cost the most — $11,599 annually — largely due to the fuel costs of those cars. Perhaps surprisingly, large sedans cost almost as much — $11,248 — as four-wheel-drive SUVs, while minivans, which often have about the same amount of passenger and cargo-carrying capability as many SUVs, averaged just $9,795.
Depreciation doesn’t compensate
In last year’s study, depreciation rates had slowed significantly, making cars worth more and partially offsetting the increases in ownership costs. According to the 2013 study, depreciation rose 0.78% to $3,571 annually on average. AAA attributed this to an increase in used cars available, which has softened resale values.
Next, for other ownership costs, we’ll focus on the sedan as our example.
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