New analysis highlights that the total cost of owning and operating a new vehicle dropped this year to $11,577, a $719 decline from 2024, according to the American Automobile Association’s annual “Your Driving Costs” report.
Changes in depreciation, lower finance charges, reduced fuel prices, and a shift towards more affordable vehicles likely contributed to the decline.
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.”
This year, depreciation decreased, with vehicles in the study losing an average of $4,334 in value per year compared to $4,680 annually in 2024.
Estimated finance costs decreased to $1,131 in 2025, down 15 percent compared to $1,332 in 2024, while the average fuel cost dropped to 13.00 cents per mile, a 12.8 percent decrease from last year.
Regular grade gasoline for study vehicles averaged $3.151 per gallon, down from $3.539.
Electricity prices for charging electric vehicles (EVs) rose slightly to 16.7 cents per kilowatt hour, up from 15.9 cents in 2024.
According to this year’s AAA EV survey, consumers are drawn to EVs for their gas savings and lower maintenance costs; EVs have the second-lowest maintenance expenses among all vehicle categories.
Fuel prices are the primary factor affecting the cost difference between EVs and gas vehicles, AAA analysis found. While EVs remain more expensive in “ownership costs” (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.
Gasoline prices have significantly declined this year, while electricity prices have increased. Despite EVs’ fuel savings—less than half of gas vehicles—it does not sufficiently offset their higher ownership costs, the analysis showed. Consequently, EVs are now more expensive overall across all vehicle categories in this study.