April 7, 2014
Depreciation, not fuel, is largest cost in owning a vehicle
According to a study conducted by the American Automobile Association (AAA), the cost to run a newer car in the US is not a cheap proposition. The study, which assumed a yearly mileage amount of 15,000 miles (24,140 km), pegs the total cost of running a car at an average of $9,151 USD ($10,050 CAD).
Based on fuel costs from 2013 (remember, Americans pay between 2/3 to 3/4 of what we pay for fuel), a typical driver will spend roughly $3,200 a year for fuel. Another big ticket item, insurance, comes in at around $1,000 per year (and Americans typically pay less for this than us, too).
Licensing, registration, and taxes make up another $600 while interest costs on financing a vehicle hover around $830 per year.
But, the biggest item of them all is something not many buyers take into account: depreciation. On average, cars in the lower 48 lose $3,500 per year in value.
Those who drive SUVs are obviously spending more, with the study finding a total amount of $11,600 to be the average running cost for the year.
[Source: AAA via AutoGo]