U.S. Annual Car Ownership Costs Reach $12,863

The average annual cost to own and operate a new vehicle in the United States has reached $12,863, according to a 2026 analysis by AAA. This figure includes rising fuel prices, depreciation, and financing costs. National diesel prices have hit an all-time high of $6.26 per gallon, while regular gasoline averages between $4.15 and $4.33 per gallon.

Separate research from Insurify indicates that drivers spend an average of $5,851 annually on ownership costs excluding loan payments. This breakdown includes $2,237 for full-coverage insurance, $2,126 for gasoline, and $1,488 for maintenance and repairs. Monthly loan payments further increase these burdens, averaging $765 for new cars and $542 for used cars in the second quarter.

Ownership costs have risen approximately 50% since 2020. Repair costs specifically have surged 70% due to a shortage of mechanics and the increased complexity of electronic vehicle components. Fuel spikes are attributed to global conflicts, including the war between Russia and Ukraine and tensions involving Iran in the Strait of Hormuz.

While electric vehicles offer lower energy costs, they often incur higher total annual expenses than gasoline models due to steeper depreciation and financing fees. Hybrids are currently identified as the most consistently lower-cost alternative for consumers.