Owning A New Car Now Costs $12,863 A Year Or $1,071.92 A Month, According To AAA, And Depreciation At $4,422 Is The Single Biggest Cost

Quick, how much do you think it costs to own a brand new car for one year? Not just the payment. Everything: the value your car loses, the gas, the insurance, the upkeep. If you guessed a number and it felt high, brace yourself, because the real one is probably higher.

A black vehicle key fob on a light surface.

According to AAA’s 2026 Your Driving Costs study, as reported by Autobody News in a story by Lisa McArdle, owning a new vehicle now averages $12,863 per year. That works out to $1,071.92 per month. And the single biggest piece of that bill is one most drivers never write a check for.

The Cost You Cannot See on a Statement

The biggest line item is depreciation, which AAA puts at $4,422 per year. Depreciation is simply the value your car loses as it ages and racks up miles. You never get a bill for it, which is exactly why it sneaks up on people. You only feel it when you go to trade the car in or sell it and discover it is worth far less than you paid.

That $4,422 is the largest cost in the study, bigger than any other single expense of owning a new vehicle. For many families, it means the most expensive part of a new car is the part that quietly drains away while it sits in the driveway.

The Other Numbers in the Study

The report offers several other figures that help explain why the total is so high.

The average sticker price in the study is $39,376.
Gasoline averages $4.152 per gallon, which AAA says is up 31.8 percent from 2025.
Half-ton pickups cost $1.10 per mile to own and operate.

The study looks at 34 models over five years and 75,000 miles. That is a useful detail, because it means the yearly figure is an average across a long stretch of ownership, not a snapshot of the first year only.

Put another way, the $12,863 annual average comes to about $35.24 for every day of the year. Depreciation of $4,422 accounts for roughly 34 percent of that total. Stretched across the five years the study covers, the yearly average adds up to about $64,315 for 75,000 miles of driving, well above the $39,376 average sticker price. Because the study covers 34 models, the figure reflects a broad mix of vehicles rather than a single make or model.

Fuel is part of the story too. At $4.152 per gallon, up 31.8 percent from 2025 according to AAA, every fill-up costs noticeably more than it did a year ago. And half-ton pickups, at $1.10 per mile to own and operate, show how much the type of vehicle you choose shapes the bill.

A Note About Last Year’s Number

AAA’s 2025 number was $11,577. AAA says the 2025 figure is not directly comparable to the 2026 figure because of a methodology change in how the study is calculated. The 2026 number stands on its own: new vehicle ownership averages $12,863 per year.

What This Means for Your Budget

Seeing the true cost of ownership can change how you shop. Here are some ways to use these numbers.

Budget for the whole car, not just the payment. A monthly payment is only one slice. Fuel, insurance, maintenance, registration and depreciation all count.
Remember the sticker price drives depreciation. A higher price tag generally means more value to lose over the years. Choosing a less expensive vehicle can trim that biggest cost.
Think about how long you will keep it. The study looks at five years. Keeping a car longer than you originally planned gives you more time to spread the cost out.
Take fuel seriously. With gasoline averaging $4.152 per gallon in the study, a vehicle that sips fuel instead of gulping it can make a real difference over a year of driving.
Be honest about trucks. If you do not need a half-ton pickup for work or towing, the $1.10 per mile figure is worth a second look.
Price out insurance before you buy. Call your agent and ask what a specific model will cost to insure. It can vary from one vehicle to the next.

Is a Used Car the Answer?

This study covers new vehicles. Because depreciation is the largest expense here, it is fair to wonder how a different purchase might change the math. A car that has already taken its first big drop in value may lose less in the years you own it. Used cars come with their own tradeoffs, such as a history you must verify and the possibility of repairs, so a good inspection and a vehicle history report matter.

The better question may be: what do you actually need? A reliable vehicle that fits your life, your budget and your driving habits will almost always beat the shiny one that stretches your finances thin.

The Bottom Line

AAA’s 2026 study says owning a new vehicle averages $12,863 per year, or $1,071.92 per month, with depreciation at $4,422 per year as the single biggest cost. Add a $39,376 average sticker price and gas at $4.152 per gallon, and it is easy to see why a new car can feel like a second mortgage. Before you sign anything, add up everything it will really cost you, and then decide if the new car smell is worth it.

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