Here’s What AAA Says Is Driving Car Ownership Costs Higher in 2026

Ownership costs keep rising

The AAA study estimates that owning and running a new car costs $12,863 a year in 2026, or $1,071.92 a month. In 2025, the average was $11,577 a year, equivalent to $964.78 monthly.

The current annual cost is 32.67% of the $39,376 sales-weighted average MSRP for new vehicles. AAA linked higher costs to rising fuel prices, faster depreciation and increased finance interest rates. Individual expenses vary with the vehicle’s fuel type.

Electricity savings have limits

Electric vehicles typically cost 66% to 70% less to fuel than gasoline cars, according to the report. AAA’s averages put regular gasoline at $4.152 per gallon and home-charged electricity as low as 18 cents per kilowatt hour.

Electricity prices rose 7.8% from 2025, compared with a 31.8% increase in gasoline costs. But EVs can still cost more overall because of depreciation, fees and financing; some are reported to lose value about twice as quickly as comparable gas-powered vehicles.

Costs differ by vehicle type

AAA found EV ownership costs higher than gas-powered models in the medium sedan, compact SUV and pickup truck categories. The largest gap was among medium sedans: gas models averaged $10,582 a year, while EVs averaged $13,662.

Hybrids had the lowest costs in every category covered. They averaged $10,204 annually for medium sedans. In the medium SUV category, EVs slightly undercut gasoline models, at $14,332 compared with $14,431.

Ways to manage expenses

Drivers can compare insurance quotes and consider vehicles from brands that are cheaper to insure. For gasoline cars, fuel efficiency can also help limit running costs; some highly efficient models have been rated at up to 58 mpg.

Depreciation can add a weighted average of $4,422 a year for some popular models, AAA said. Toyota, Subaru and Honda are identified as brands that retain value well, while CarEdge names Lexus as the luxury brand with the strongest resale value.

Luxury vehicles generally have higher maintenance and parts costs than mainstream brands such as Toyota and Honda. Keeping up with maintenance can help prevent larger bills and build a service history that supports resale value.