AAA’s 2025 analysis shows the total cost of owning and operating a new vehicle has decreased to $11,577, or $964.78 per month.
The total cost is down $719 compared to 2024. Factors contributing to the decline include depreciation, lower finance charges, reduced fuel prices, and a shift towards more affordable vehicle options, a AAA press release says.
“It might be tempting to rush to the dealer for a new car when you notice a drop in ownership costs this year,” said Greg Brannon, AAA’s director of automotive research, in the release. “However, consumers should factor in all the expenses involved before making any commitments.”
This year, depreciation has decreased, with vehicles in the YDC study losing an average of $4,334 in value per year compared to $4,680 annually in 2024.
The total cost to own and operate a new vehicle in 2024 was $12,297, or $1,024.71 monthly — an increase of $115 from 2023. The leading costs at that time were depreciation and finance charges.
Categories driving lower costs this year include:
AAA notes that while a pickup truck is ideal for heavy-duty hauling and towing, it comes at a steep cost, averaging an additional $6,402 per year compared to a small sedan, which operates at just 55.87 cents per mile, or 43.3% less than a pickup.
“Similarly, according to this year’s AAA EV survey, consumers are increasingly drawn to electric vehicles for their gas savings and lower maintenance costs, with EVs having the second-lowest maintenance expenses among all vehicle categories,” the release says. “Hybrid options are also appealing, offering the lowest maintenance fees while sharing similar lower fuel cost benefits, even considering the national average electricity price of 16.7 cents per kilowatt-hour (kWh).
“Ultimately, whether opting for a pickup, a small sedan, or an EV, weighing these factors carefully to make a well-budgeted decision can lead to ownership savings.”
The primary factor affecting the cost differences between EVs and gas vehicles this year is fuel prices, AAA concluded.

While EVs are more expensive in terms of ownership costs (including depreciation, insurance, fees, and financing), they have lower operating costs, particularly in fuel and maintenance. Last year, EV fuel costs were about one-third of gas vehicle costs, according to AAA.
“This year, however, gasoline prices have significantly decreased, while electricity prices have slightly increased,” the release says. “Although EVs still offer fuel savings — less than half of gas vehicle costs — this does not sufficiently offset their higher ownership costs. Consequently, EVs are now more expensive overall across all vehicle categories in this study.”
In California, a bill backed by the National Consumer Law Center (NCLC) promises to make buying a new or used vehicle from dealerships in the state more affordable and less risky, according to a press release.
SB 766, the California Combating Auto Retail Scams (CARS) Act, was passed by the legislature last week.
“For years, car shoppers have often complained about deceptive practices that lead to higher prices or unfair deals,” said bill sponsor Sen. Ben Allen (D-District 24), in the release. “The California CARS Act will make cars more affordable, and will benefit both car buyers and honest car dealers by making the car market in California fairer and more competitive.”
The first part of the bill is modeled after the Federal Trade Commission’s Combating Auto Retail Scams (CARS) Rule, which was overturned by the federal Fifth District court solely on procedural grounds in a split 2-1 decision before the rule could take effect, and it hasn’t been reissued, the release says.
NCLC says economists from Stanford, MIT, Clemson, the University of Arizona, and the University of Michigan project the CARS Rule provisions in SB 766 will save California car buyers $234 million in reduced search costs and another 8.5 million hours in time savings each year the law is in effect. However, NCLC notes the economists didn’t evaluate part of the bill, which creates a three-day cooling-off period for used car buyers.
Featured image credit: ZeynepKaya/iStock
YDC chart provided by AAA
© 2025 DRIVEN COMMUNICATIONS Inc. All Rights Reserved.

source