- AAA’s annual Your Driving Costs survey finds that the total cost of owning a car averages $11,577
- The total has declined $719 in the past year
The average American spends $11,577 a year on car ownership, according to AAA. The organization’s annual Your Driving Costs survey showed a rare drop in 2025, with owners spending $719 less than in 2024.
Depreciation makes up the most significant portion of ownership costs, the organization says. Depreciation figures improved in 2025, AAA says, with vehicles in the study “losing an average of $4,334 in value per year compared to $4,680 annually in 2024.”
Related: Calculate Your Car’s Depreciation
Finance costs also dropped, as the Federal Reserve cut interest rates late in 2024. Auto credit grew slightly more restrictive last month, but analysts widely expect another Fed rate cut this week.
Meanwhile, AAA notes, the price of gasoline “dropped to 13.00 cents per mile, a 12.8% decrease from last year.” The cost of refilling an electric vehicle (EV) rose slightly as electricity demand spiked nationwide, powered partly by the rise of artificial intelligence products. But, AAA notes, “Although EVs still offer fuel savings — less than half of gas vehicle costs — this does not sufficiently offset their higher ownership costs.”
