Driving Costs Hit Six-Year Low, Finds AAA

[Ultralight]

So this is interesting... the cost is down but it is still a lot of cash!

Annual cost to own and operate a vehicle falls to $8,558 in 2016


ORLANDO, Fla. (April 7, 2016) – Due to falling gas prices, the annual cost to own and operate a vehicle in the United States has fallen to a six-year low of $8,558 according to AAA’s 2016 Your Driving Costsstudy. This year, a driver can expect to spend 57 cents for each mile driven, approximately $713 per month, to cover the fixed and variable costs associated with owning and operating a car.
“Thanks to lower gas prices, American drivers can expect to save hundreds of dollars in fuel costs in 2016,” said John Nielsen, AAA’s managing director of Automotive Engineering and Repair. “Fortunately, this annual savings more than offsets the moderate increases in maintenance, insurance, finance charges and other costs associated with owning and operating a vehicle.”

Other facts and figs in the link.

http://newsroom.aaa.com/auto/your-driving-costs/

[jp1]

That sounds about right. I don't spend nearly that much but then I only drive about 3,000 miles per year, don't have a payment since I inherited a low mileage car, and am old enough to be able to get insurance for $700 annually despite living in a higher risk urban area. My 2015 car expenses were just under $1500.

[ToomuchStuff]

Sounds high to me. They show finance charges in the figures, which lead me to believe this involves having a vehicle that isn't paid for.

[Ultralight]

Most people see that figure and say it is high. But what I think is: "Okay, so it is high. Knock off $1000. So then you are down to $7558!"

That is still mucho diniero!

[Williamsmith]

AAA is just trying to make people feel better about car ownership and travel. After all, they are the American Automobile Association.

So the real story beneath the story for me is, why is it so high? And the truth is because the automobile industry, the insurance industry, the banks and the related garage repair businesses make it so.

The automobile industry advertises the heck out of new cars, the low to no interest rate carrot is dangled to get people in looking, most of whom can't qualify for no interest but who will definitely qualify at outrageous interest rates. The banks split the profit on the higher interest rate loans with the dealership. The insurance industry jacks up its prices when the cost of gasoline goes down claiming greater costs because of more miles driven. Yet they never cut their rates due to safety improvements or on an individual case basis.

So the related industries herd the masses into the most costly scenario for owning a vehicle and then turn around and publish bullcrap like how cheap it is to own and operate one even though the numbers they quote are outrageous.

I own a Toyota Tacoma (SteveinMN ....I wouldn't read any further) ....calculating my 5000 miles per year average, the cost of gas at a nation highest average because of a huge state surtax, insurance at $500 per year, free oil changes, tire rotations and state inspections because I own a Toyotacare product, and no other overhead......even after adding in cost of a new set of tires with 40,000 miles........puts me at a frugal $100 per month or $1,200 per year.

And that is just how cheap it could be.......if we got high usury and greed out of the equation.

[Ultralight]

AAA is just trying to make people feel better about car ownership and travel. After all, they are the American Automobile Association.

So the real story beneath the story for me is, why is it so high? And the truth is because the automobile industry, the insurance industry, the banks and the related garage repair businesses make it so.

The automobile industry advertises the heck out of new cars, the low to no interest rate carrot is dangled to get people in looking, most of whom can't qualify for no interest but who will definitely qualify at outrageous interest rates. The banks split the profit on the higher interest rate loans with the dealership. The insurance industry jacks up its prices when the cost of gasoline goes down claiming greater costs because of more miles driven. Yet they never cut their rates due to safety improvements or on an individual case basis.

So the related industries herd the masses into the most costly scenario for owning a vehicle and then turn around and publish bullcrap like how cheap it is to own and operate one even though the numbers they quote are outrageous.

I own a Toyota Tacoma (SteveinMN ....I wouldn't read any further) ....calculating my 5000 miles per year average, the cost of gas at a nation highest average because of a huge state surtax, insurance at $500 per year, free oil changes, tire rotations and state inspections because I own a Toyotacare product, and no other overhead......even after adding in cost of a new set of tires with 40,000 miles........puts me at a frugal $100 per month or $1,200 per year.

And that is just how cheap it could be.......if we got high usury and greed out of the equation.

You have a good system. I have owned my car since May 2013. I bought it new and put about 46K miles on it so far.

I know that driving (the car, the insurance, the fuel, etc.) has been an expensive endeavor for me. If I could do it all over again, I am not sure I would do it at all.

[ToomuchStuff]

Most people see that figure and say it is high. But what I think is: "Okay, so it is high. Knock off $1000. So then you are down to $7558!"

That is still mucho diniero!

I am closer to Williamsmith.
Last year was a bad year (head gasket repair). Also bought tires last year, and that would put me at $4k last year (fuel, taxes, insurance, repairs). Year before was closer to $2k, at the average 12-15K miles that is normal.

[jp1]

Sounds high to me. They show finance charges in the figures, which lead me to believe this involves having a vehicle that isn't paid for.

Although financing a vehicle isn't mandatory, buying one is (unless one receives one as a gift I suppose). Even going bargain basement a new Toyota Corolla starts at $17,300. Figure 150,000 mile lifespan of the car and you're still looking at $0.115 per mile to purchase it, assuming no financing costs. Individual circumstances vary, to be sure, but most people spend more than $17k on a new car, so their per mile cost of buying will be higher. According to Kelley blue book it's more like $32k. Assuming still a 150,000 mile lifespan that comes to $0.213 per mile to purchase the car.

[Williamsmith]

Hyundai Accent will knock a few thousand off that price. 10 year/100,000 mile warranty.

[Ultralight]

My Nissan Versa hatchback was $15,999 (less actually). This was in May 2013. 45k mile warranty though.