# Study shows vehicles with most expensive maintenance

The costs of owning a car continue far past the date of purchase. Based on the latest study on driving costs by the American Automobile Association (AAA), owning a car costs an average of \$9,666 per year. The actual expenses can vary based on several factors, such as the type of car, insurance, and maintenance. They all play a role in the cost of owning a car. By knowing and understanding these factors prior to purchasing a vehicle, you can better determine if owning a car fits your budget.

Owning a car can get expensive, and the numbers don’t lie.

• Owning a car costs an average of \$9,282 per year or \$773.50 per month.
• It costs an average of \$205 to repair a 5-year-old car and \$430 to repair a 10-year-old car.
• The price of a new car is \$30,000 on average.
• The average total cost per mile rose from 0.59 cents in 2018 to 0.62 cents in 2019.

## Average Annual Cost Per Vehicle Type

The average cost of car ownership per year starts with the type of vehicle you drive. The bigger the vehicle, the more expensive it will be to maintain and fill the gas tank.

Note: Costs are calculated based on 15,000 miles driven annually

*Source: American Automobile Association. Prices as of July 2022.

## Breakdown of Costs

The cost of owning a car doesn’t end at auto loan payments and gas. There are a myriad of other expenses involved, such as insurance, license and registration fees, maintenance and more. Accounting for expected and unexpected expenses is vital to determining your car budget.

### How to Calculate Annual Cost of Car Ownership

While it can be tedious work to determine your overall ownership costs, calculating the cost of owning a car can help you manage your finances and keep personal debt to a minimum.

Take a look at how to calculate the different costs of car ownership.

The cost of gas per mile can give you insight into how much you’re paying for gas. You can generate two outcomes: miles per gallon and cents per mile. This information can tell you how much to budget for gas when evaluating the cost of owning a car. To calculate how many miles possible per gallon, take the total number of miles you’ve driven and divide that by the total number of gallons for a full tank. To calculate the dollar amount, or cents per mile, simply divide the total cost of a full tank by the total number of miles driven.

Using the table above as an example, assume you drove 867 miles and it takes 21 gallons to fill your tank. Following the miles per gallon formula, you can drive about 41.3 miles per gallon.

However, if you want to calculate the dollar amount per mile or the cents per mile, take the cost of a full tank and divide that by the total miles driven. In this example, assume that it costs \$100.38 to fill your tank. If you drive 867 miles, the cost per mile is 11.58 cents.

### Operating Costs

Your operating costs, otherwise known as variable costs, are only incurred if you drive the vehicle. Typically, this includes your gas, maintenance and costs of repair (if applicable). To determine your fuel costs, calculate your vehicle’s cents per mile.

Operating costs are just one aspect of owning and driving a vehicle. There are additional costs associated with the responsibility of owning a car.

### Ownership Costs

The cost of car ownership involves other fees and requirements to own and operate a car. This includes auto insurance, registration and license fees, taxes and any charges associated with your auto loan. Depreciation, which is the loss of your vehicle’s value every year, is another consideration. It can impact the resale value of your car if and when you decide to sell it.

## Car Ownership Cost FAQs

The costs of car ownership can be confusing for first-time car buyers. Read the frequently asked questions below to get a better understanding.

What is the average cost of owning a car per month?

It costs an average of \$9,282 per year or \$773.5 per month to own a car. However, note that actual costs can vary based on the vehicle type, the number of miles driven, and more.

What are the recurring costs of car ownership?

The recurring costs of car ownership include repair and maintenance costs, title and registration fees, taxes, auto insurance, and gas.

How do you calculate the total cost of ownership for a car?

To get the total cost of owning a car, calculate the cost of gas per mile, operating costs, and ownership costs. Operating costs typically include the cost of gas per mile and maintenance fees. Ownership costs include taxes, fees, insurance, financing, and depreciation.

How do you calculate the cost of gas per mile?

To calculate the cost of gas per mile or cents per mile, simply divide the total cost of a full tank by the total miles driven. For instance, if it costs \$150 to fill your tank and you’ve driven 1,000 miles, then your cents per mile is \$0.15.

This story originally appeared on Moneygeek.com and was syndicated by MediaFeed.org

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