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The Southern Maryland Chronicle
When News Matters, It Matters Where You Get Your News.
PRINCE FREDERICK, Md. – On September 16, 2025, AAA released its annual “Your Driving Costs” analysis, revealing that the cost of owning and operating a new vehicle in the United States has decreased to $11,577 per year, or $964.78 monthly, a $719 drop from 2024’s $12,296. The decline, driven by lower depreciation, finance charges, fuel prices, and a shift toward affordable vehicle options, offers relief for Southern Maryland residents navigating car purchases in Calvert, Charles, and St. Mary’s counties.
Depreciation remains the largest expense, averaging $4,334 annually compared to $4,680 in 2024, as vehicles retain value better amid stable markets. Finance charges fell 15 percent to $1,131 from $1,332, reflecting lower interest rates and cheaper models in the study. Fuel costs dropped significantly, with regular gasoline averaging $3.151 per gallon, down from $3.539, reducing per-mile costs to 13 cents, a 12.8 percent decrease. Electric vehicle (EV) electricity costs, however, rose slightly to 16.7 cents per kilowatt-hour from 15.9 cents.
“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. “However, consumers should factor in all the expenses involved before making any commitments.”
For Southern Marylanders, where commutes along Route 4 or Interstate 95 are common, these savings influence decisions on sedans, SUVs, or trucks. AAA’s study evaluated 45 top-selling, mid-priced models across nine categories—small sedans, medium sedans, compact SUVs, medium SUVs, large SUVs, pickup trucks, minivans, hybrids, and EVs—over five years and 75,000 miles. Costs include fuel, maintenance, insurance, registration, taxes, depreciation, and finance charges. A small sedan, for instance, costs 55.87 cents per mile, 43.3 percent less than a pickup truck’s $6,402 higher annual cost, urging buyers to match vehicles to needs.
EVs and hybrids offer savings in fuel and maintenance but face higher ownership costs. EVs’ fuel expenses remain less than half of gas vehicles’, despite rising electricity prices. Hybrids have the lowest maintenance costs, appealing to budget-conscious drivers in areas like Lusby or Leonardtown. AAA’s EV survey highlights growing interest in these vehicles for their efficiency, though higher depreciation and insurance keep total costs above gas-powered models. A separate analysis of 11 EV and hybrid models in four categories—medium sedans, compact and medium SUVs, and pickups—shows gas vehicles remain cheaper overall due to lower purchase prices.
The study’s methodology, using data from Vincentric LLC, ensures consistent comparisons. It assumes 15,000 miles driven annually, aligning with typical Southern Maryland commutes to workplaces in Patuxent River or Washington, D.C. Variations in driving habits or fuel prices—$3.20 per gallon locally in September 2025, per AAA’s fuel gauge—may alter costs. For EV owners, Maryland’s 87 public charging stations,support adoption, though rising electricity rates temper savings.
This cost reduction aligns with regional trends. Maryland’s 2024 vehicle sales data shows a 7 percent uptick in hybrid purchases, reflecting demand for efficiency. Buyers in Southern Maryland, where rural roads and waterman culture favor trucks, are urged to weigh long-term costs. AAA’s findings empower informed decisions, ensuring vehicles fit both lifestyle and budget.
Show your love for Southern Maryland by powering authoritative, in-depth reporting about your community, and keeping access free for neighbors who need it.
Your contribution is appreciated.
David M. Higgins II is an award-winning journalist passionate about uncovering the truth and telling compelling stories. Born in Baltimore and raised in Southern Maryland, he has lived in several East… More by David M. Higgins II, Publisher/Editor
The Southern Maryland Chronicle(SoMDC) is an all-digital news source for SoMD. We cover all of Charles, Calvert, and St. Mary’s Counties; along with the Southern portions of Anne Arundel and Prince George’s County. SoMDC covers every aspect of the SoMD Region and will continue to grow with the community. SoMDC appreciates all feedback from the community, along with tips, pictures, articles contributed, and support.
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