Apr 14, 2008

Driving Gets More Expensive

This just in: Driving is more expensive than ever. We know it’s intuitive with gasoline prices like they are, but now there is empirical proof. The Automobile Club of Southern California’s 2008 edition of "Your Driving Costs" shows that the cost of driving a passenger vehicle in the United States has increased 1.9 cents per mile in the last year and now averages 54.1 cents per mile.

“While the cost of some driving expenses declined since the start of 2007, higher gasoline prices have more than offset these savings and pushed the overall cost of vehicle ownership and operation higher this year,” said the Auto Club's Automotive Research Center Manager Steve Mazor.

In 2008, AAA estimates it will cost $8,121 to own and operate a new passenger car driven 15,000 miles per year. This compares to $7,823 per year in 2007 or 52.2 cents per mile. Costs for maintenance, full-coverage insurance and depreciation are all slightly lower this year, while costs for fuel, tires, financing, license, registration and taxes showed increases.

AAA's study calculates the average costs of owning and operating five top-selling models in three popular size classes: small, medium and large sedans. The results clearly show that consumers have an opportunity to save substantial sums of money by switching from larger models to smaller vehicles. For example, AAA's research shows the annual average cost of driving a small sedan is $6,320 per year, while a large sedan costs $9,769 per year. Similar savings can be realized by driving a minivan instead of a larger and less fuel-efficient sport utility vehicle. AAA estimates the annual expense of owning and operating a typical minivan at $8,644 per year, versus $10,448 for a four-wheel-drive mid-size SUV.