On a monthly basis, costs have slid from $1,024.74 to $964.78. This includes monthly finance payments, insurance, fuel, and maintenance.
The report points to depreciation, lower finance charges, reduced gas prices, and a shift toward more affordable vehicles as the main reasons for the savings this year.
“It might be tempting to rush to the dealer for a new car when you notice a drop in ownership costs this year,” Greg Brannon, AAA’s director of automotive research, noted in the report. “However, consumers should factor in all the expenses involved before making any commitments.”
AAA indicates that depreciation is the most significant cost of vehicle ownership. Defined as the difference between a car’s purchase price and its resale value, depreciation this year has decreased. AAA’s Your Driving Cost (YDC) study shows vehicles losing an average of $4,344 in value annually this year, compared with $4,680 in 2024.
Finance charges are also down 15 percent in 2025, from an average $1,332 monthly payment in 2024 to $1,131 per month this year.
The decline in fuel prices has also helped consumers. The report shows the average cost of gas decreased $0.13 per mile—a 12.8 percent drop from 2024. Regular grade gas averaged $3.151 per gallon in 2025, down from $3.539 per gallon last year.
For electric vehicles, however, utility prices rose to $0.167 per kilowatt hour, up slightly from $0.159 in 2024.
The YDC report indicated that vehicle type may be the most important factor in keeping ownership costs low.
“For example, while a pickup truck is ideal for heavy-duty hauling and towing, it comes at a steep cost, averaging an additional $6,402 per year compared to a small sedan, which operates at just $0.5587 per mile—43.3 percent less than a pickup,” the report stated.
Many consumers are also beginning to choose electric vehicles and hybrid options for gas savings and lower maintenance costs. AAA indicates that hybrids offer the lowest maintenance fees as well as lower gas costs.
According to the report, electric vehicles can incur more ownership costs when it comes to depreciation, insurance fees, and financing, but generally have lower operating costs. Last year, fuel costs for electric vehicles (EVs) were about a third of the cost for vehicles using gas only.
“This year, however, gasoline prices have significantly decreased, while electricity prices have slightly increased. Consequently, EVs are now more expensive overall across all vehicle categories in this study,” the report said.
For consumers in the market for a new vehicle, AAA recommends creating a monthly budget and factoring in ownership and operating costs, including monthly car payments, insurance, gas expenses, and any required maintenance costs.
It also suggests getting a pre-approval for a loan from a bank or finance firm before discussing finance rates with the car dealership in order to ensure the best rates available.
