Average Annual Cost of a Car

What is the average annual cost of a car? Does it depend on the type of vehicle you drive? Does it depend on where you live and how you drive? The answer is yes to all of these questions. Research through the motor club Triple A, Edmunds, and the Department of Transportation, was quite an eye-opener.

My Car Costs What?

Annual costs you should include each year are insurance, gasoline, maintenance, and if you use your vehicle to travel to work, parking. According to the Triple A motor club, the cost to own a car is approximately 52.2 cents per gallon; that’s up 1.9 cents since 2008. To put that in perspective, a new car that is driven approximately 15,000 miles per year will cost a whopping $7,823 per year.

The Triple A says yes, the type of car you drive does matter. If you choose a small sedan, like a Chevy Cobalt or Ford Focus, expect your annual costs to be around $6,320. A larger sedan like Chrysler’s 300 or a Ford Taurus, will cost you $9.769 per year. Minivans came in at $8.644 per year and four-wheel drive trucks and SUVs came in at $10,448 per year.

When calculating all of your expenses, don’t forget to include the following:

• Gasoline (miles or km per gallon)
• Insurance
• Registration, taxes, and titling fees
• Maintenance
• Parking

Figure these costs by month and year, and then divide them by the average number of miles you drive each year. Remember, according to Sandy Bosserman, Service Manager of Enchantment Ford in New Mexico, the average maintenance you should expect to spend on a new car during the first year of driving is approximately four-hundred dollars. For every after that first year, expect to add $200 to $400 in maintenance fees to the cost to own that car.

Insurance, registration, and parking fees will vary depending on where you live. Some states charge high amounts to register a vehicle while others charge a straight tax and titling fee based on the weight of the vehicle. If you’re not sure how to figure insurance, registration or parking fees, call around and find out how much these items cost in your area.

Environmentalists and some state governments also include items such as the cost of the war on oil, police and other law enforcement agency monetary support, and ambulance and EMT support. Even sitting in traffic has been analyzed by some eco-friendly environmentalists.

According to Livable Places, you can cut down on your annual car costs by following these tips:

1. Public Transport – If you live in an area that offers effective public transport, utilize it. Save even further by buying monthly passes.
2. Car Pooling – Ask around the office and see who lives near you. Even going two to five miles out of your way will cut down on costs if every car-pooler agrees to chip in weekly or monthly and take turns driving.
3. Trek to Work – How far is it really to the office? Could you walk it? If you can think how you’ll not only save on driving costs, you’ll be getting healthier too!
4. Buy A Bike – If you’re not into walking, why not try a bike? Today’s bikes are safer and are offering more storage space options. Motorized scooters are also becoming popular.
5. Shop To Get Gas Savings – Many grocery stores are offering discounted gas prices at their pumps if you grocery shop at their supermarkets. Even a savings of four-cents off a gallon of gas will cut down on your costs.
6. Buy a Different Vehicle – If your SUV is a gas hog and you drive it everywhere, think about buying a least expensive car for jaunts back and forth to work, especially if you are the only one in the vehicle. Save the SUV or minivan for outings and family adventures.
7. Keep Your Older Car - If your older car is running fine, don't invest in a new one. If you do buy a new car, pay cash if you can. Adding interest and financing to your average annual costs will make your price tag much higher.

The average annual cost of a car will continue to rise each year unless smart consumers pay attention to what they are driving, how they drive, and find ways to save. Do your part by using some of these tips and start saving money now.

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