Costs Drop for Owning, Operating a Vehicle, AAA Finds
ORLANDO, Fla. -- Owning and operating your vehicle just got a little less expensive, a new AAA study finds. The average cost to own and operate a sedan in the United States dropped 2.7% to 59.2 cents per mile, or $8,876 per year, based on 15,000 miles of driving annually.
"Despite increases in maintenance and registration fees, American motorists are experiencing an overall decrease in the cost to own and operate a vehicle," said John Nielsen, AAA managing director of automotive engineering and repair. "A large decrease in fuel costs, and lower tire, insurance and depreciation expenses are saving owners more than 1.5 cents on every mile they drive."
Cost per mile for a medium sedan is 58.9 cents and a large sedan is 72.2 cents that translate into $8,839 and $11,039 per year, respectively.
Fuel costs had the largest percentage decrease from 2013 to 2014, falling 10.04% to 13 cents per mile. The average cost of regular-grade fuel fell 5.96%, from $3.486 to $3.278 per gallon. At the same time, vehicle redesigns and improved power train technologies that take into account higher federal corporate average fuel economy (CAFE) standards has the effect of improving the average fuel economy of the sedans in the study. Fuel costs in the 2014 study were calculated by using the national average price for regular unleaded gasoline during the fourth quarter of 2013.
This year, maintenance costs rose nearly 2% per mile on average for sedan owners. AAA's estimates are based upon the cost to maintain a vehicle and perform needed repairs for five years and 75,000 miles, including labor expenses, replacement part prices and the purchase of an extended warranty policy. For 2014, some vehicles had lower costs based on longer service intervals or reduced labor times, while others experienced an increase in labor times and/or part prices that led to a rise in maintenance costs. AAA staff also identified an increasing number of vehicles requiring low-viscosity semi- or full-synthetic motor oils that cost more than conventional oils but provide better fuel economy, added engine protection and allow for longer oil change intervals.
After several years of increases because of rising costs for raw materials, energy and transportation, tire prices this year have have fallen 3% to 97 cents per mile. The decrease can be credited to two factors: some redesigned sedans now come equipped with less expensive tires and some tire prices have fallen.
This year, average insurance costs remain essentially unchanged at an annual cost of $1,023 compared to $1,029 last year.
After a small rise in depreciation last year, the tide has turned and depreciation decreased for 2014 to $3,510 per year from $3,571. The numbers are particularly strong among the medium-size sedans where several redesigned models have been introduced.
Published by The Business Journal, Youngstown, Ohio.
CLICK HERE to subscribe to our twice-monthly print edition and to our free daily email headlines.