Cost of Owning and Operating Vehicle in U.S. Increased 1.9 Percent

The following is a press release from AAA.

AAA released the results of its annual ‘Your Driving Costs’ study today revealing a 1.9 percent rise in the yearly costs to own and operate a sedan in the U.S. The average costs rose 1.1 cents per mile to 59.6 cents per mile, or $8,946 per year, based upon 15,000 miles of annual driving.

“The average driving cost for 2012 is up due to relatively large increases in fuel and tire costs, and more moderate increases in other areas,” said Jenny M. Robinson, Manager of Public and Government Affairs for AAA Mid-Atlantic.  “Those increases were offset by a decrease in depreciation resulting in an overall increase of 1.9 percent.”

The findings of the 2012 ‘Your Driving Costs’ study include:

Based on Driving 15,000 miles annually

Small

Sedan 

Medium Sedan

Large Sedan

Sedan Average

SUV 4WD

Minivan

Cost Per Mile

44.9 cents

58.5 cents

75.5 cents

59.6 cents

75.7 cents

63.4 cents

Cost Per Year

$6,735

$8,780

$11,324

$8,946

$11,360

$9,504

In-depth findings of this year’s study, including a breakdown of specific costs by category of vehicle and various annual mileages, are contained in the ‘Your Driving Costs’ brochure which is available at select local AAA branch offices or may be downloaded at the AAA Newsroom. 

“Some driving costs fluctuate at different times during the year, such as what we have experienced with fuel prices since the middle of February,” explained Robinson. “However, AAA’s use of a consistent methodology for its study allows an accurate comparison of driving costs from year to year, and the figures can reliably be used to compare different categories of vehicles.”

Robinson continued, “AAA understands that high fuel prices are a real concern for consumers, and those in the market for a new vehicle may want to be cautious and determine projected operational costs based on varying levels of fuels costs. To assist consumers in determining their individual driving costs, the AAA ‘Your Driving Costs’ brochure contains a worksheet that can be filled out and personalized for a specific area, driver and vehicle.

Fuel Costs Up 14.8 Percent

The cost of fuel had the largest percentage increase from 2011 to 2012, rising 14.8 percent to 14.2 cents per mile on average for sedan owners. The average cost of regular grade fuel (used by most of the study vehicles) rose 16.6 percent, from $2.880 to $3.357 per gallon. Several vehicles included in the ‘Your Driving Costs’ study had increases in fuel economy, resulting in the overall average fuel cost increase being slightly less. The fuel costs in the 2012 study were calculated using the national average price for regular, unleaded gasoline during the fourth quarter of 2011.

Tire Costs Up 4.2 Percent

The cost of tires ranks second highest among the factors that rose from 2011 to 2012, increasing by 4.2 percent to one cent per mile on average for sedan owners. The rise in cost can be attributed to higher costs for natural rubber, and the increased cost of oil used in tire production and transportation from factory to distributors across the country. A collateral factor is a trend for manufactures to equip new cars with premium-grade tires rather than mid-grade tires.

Depreciation Drops 4.9 Percent

Depreciation costs were up slightly in 2011, but for 2012 the trend has reversed with depreciation falling across the board by nearly five percent. This change may be a consequence of reduced new car sales over the past few years, which has resulted in a relative shortage of good used cars on the market, driving up their value. This is good news for those in the resale market as their vehicles will retain a greater portion of their purchase cost.

Maintenance Costs Up 0.7 Percent

Maintenance costs are slightly higher in the 2012 ‘Your Driving Costs’ study with an increase of 0.7 percent to 4.47 cents per mile on average for sedans. Factors contributing to the increase include higher prices for oil and more manufacturers now requiring synthetic or synthetic-blend motor oils. Although the use of these oils often comes with extended service intervals, the higher cost of the oil combined with increased maintenance operations at each service (which adds to the time required) can combine to increase overall vehicle maintenance costs.

Insurance Costs Up 3.4 Percent

Average insurance costs for sedans rose 3.4 percent (or $33) to $1001 yearly. Insurance rates vary widely by driver and driving record, issuing company and geographical region. AAA insurance cost estimates are based on a low-risk driver with a clean driving record. For 2012, this group saw a small increase that offset a decrease experienced in 2011. Quotes from five AAA clubs and insurance companies representing seven states showed across the board increases for all sedan sizes, with large cars having the biggest increase.