According to AAA’s recently released 2023 Your Driving Costs (YDC) report, the average cost of owning and operating a new vehicle has increased significantly, with an annual expense of $12,182 or a monthly cost of $1,015. By comparison, the average yearly cost in 2022 was $10,728, and the monthly cost was $894.
One factor behind the increase is that the overall average manufacturer’s suggested retail price (MSRP) of a new vehicle in 2023 YDC study came in at $34,876 — up $1,575, or 4.7%, compared to last year. Additionally, this year’s vehicles carried an average annual finance charge of $1,253 — up 90% from 2022.
According to AAA, the change in the annual cost of owning a new vehicle also was driven by …
• Depreciation, which is the difference between the car’s value upon purchase and the value of the car when sold. According 2023 YDC projections, new vehicles are expected to depreciate by an average of $4,538 per year over five years of ownership — up 24% compared to 2022.
• Automakers producing more oversized, luxurious and expensive vehicles, loaded with extra features that bump up prices even more.
• A jump in new vehicle prices (up almost $1,600) compared to used vehicle values, which declined in the past year.
• A year-over-year increase in the cost of charging electric vehicles.