Average cost of car ownership rises to $8,946 per year

From AB



ORLANDO, Fla., April 27, 2012 /PRNewswire-USNewswire/ -- AAA released
the results of its annual 'Your Driving Costs' study today revealing a
1.9 percent rise in the yearly costs to own and operate a sedan in the
U.S. The average costs rose 1.1 cents per mile to 59.6 cents per mile,
or $8,946 per year, based upon 15,000 miles of annual driving.

"The average driving cost for 2012 is up due to relatively large
increases in fuel and tire costs, and more moderate increases in other
areas," said John Nielsen, AAA director of Automotive Engineering
and Repair. "Those increases were offset by a decrease in
depreciation resulting in an overall increase of 1.9 percent."

In-depth findings of this year's study, including a breakdown of
specific costs by category of vehicle and various annual mileages, are
contained in the 'Your Driving Costs' brochure which is available at
select local AAA branch offices or may be downloaded at the AAA
Newsroom.

"Some driving costs fluctuate at different times during the year,
such as what we have experienced with fuel prices since the middle of
February," explained Nielsen. "However, AAA's use of a
consistent methodology for its study allows an accurate comparison of
driving costs from year to year, and the figures can reliably be used
to compare different categories of vehicles."

Nielsen continued, "AAA understands that high fuel prices are a
real concern for consumers, and those in the market for a new vehicle
may want to be cautious and determine projected operational costs
based on varying levels of fuels costs. To assist consumers in
determining their individual driving costs, the AAA 'Your Driving
Costs' brochure contains a worksheet that can be filled out and
personalized for a specific area, driver and vehicle.

Fuel Costs Up 14.8 Percent
The cost of fuel had the largest percentage increase from 2011 to
2012, rising 14.8 percent to 14.2 cents per mile on average for sedan
owners. The average cost of regular grade fuel (used by most of the
study vehicles) rose 16.6 percent, from $2.880 to $3.357 per gallon.
Several vehicles included in the 'Your Driving Costs' study had
increases in fuel economy, resulting in the overall average fuel cost
increase being slightly less. The fuel costs in the 2012 study were
calculated using the national average price for regular, unleaded
gasoline during the fourth quarter of 2011.

Tire Costs Up 4.2 Percent
The cost of tires ranks second highest among the factors that rose
from 2011 to 2012, increasing by 4.2 percent to one cent per mile on
average for sedan owners. The rise in cost can be attributed to higher
costs for natural rubber, and the increased cost of oil used in tire
production and transportation from factory to distributors across the
country. A collateral factor is a trend for manufactures to equip new
cars with premium-grade tires rather than mid-grade tires.

Depreciation Drops 4.9 Percent
Depreciation costs were up slightly in 2011, but for 2012 the trend
has reversed with depreciation falling across the board by nearly five
percent. This change may be a consequence of reduced new car sales
over the past few years, which has resulted in a relative shortage of
good used cars on the market, driving up their value. This is good
news for those in the resale market as their vehicles will retain a
greater portion of their purchase cost.

Maintenance Costs Up 0.7 Percent
Maintenance costs are slightly higher in the 2012 'Your Driving Costs'
study with an increase of 0.7 percent to 4.47 cents per mile on
average for sedans. Factors contributing to the increase include
higher prices for oil and more manufacturers now requiring synthetic
or synthetic-blend motor oils. Although the use of these oils often
comes with extended service intervals, the higher cost of the oil
combined with increased maintenance operations at each service (which
adds to the time required) can combine to increase overall vehicle
maintenance costs.

Insurance Costs Up 3.4 Percent
Average insurance costs for sedans rose 3.4 percent (or $33) to $1001
yearly. Insurance rates vary widely by driver and driving record,
issuing company and geographical region. AAA insurance cost estimates
are based on a low-risk driver with a clean driving record. For 2012,
this group saw a small increase that offset a decrease experienced in
2011. Quotes from five AAA clubs and insurance companies representing
seven states showed across the board increases for all sedan sizes,
with large cars having the biggest increase.

62nd Year of 'Your Driving Costs' Study
AAA has published 'Your Driving Costs' since 1950. That year, driving
a car 10,000 miles per year cost 9 cents per mile, and gasoline sold
for 27 cents per gallon.

Driving Costs are also affected by how well your vehicle runs.
Performing regular maintenance not only ensures fuel-efficient
operation but can help prevent costly vehicle repairs that can add to
your total ownership cost. For more information on ways to keep your
vehicle in top condition read the owner's manual and visit AAA.com for
vehicle care information, automated maintenance reminders and repair
facility locator tools.

The 'Your Driving Costs' study analyzes the cost to own and operate a
vehicle in the U.S. Variable operating costs considered in the study
include fuel, maintenance and tires. Fuel costs are based on $3.357
per gallon (average price of gas for October 2011-December 2011/AAA
Fuel Gauge Report) and Environmental Protection Agency fuel-economy
ratings weighted 60 percent city, 40 percent highway driving. Fixed
ownership costs factored into the results include insurance, license
and registration fees, taxes, depreciation and finance charges. These
ownership costs are assumed to be on a purchase of a new vehicle,
depreciated over five years. Finance charges are based on five year
loan at six percent interest with a 10 percent down payment. Your
actual operating costs may vary. Refer to page three of AAA's 2012
'Your Driving Costs' brochure for a list of vehicles and assumptions
used in the study.

To conduct its study, AAA's auto buying and repair experts compiled
detailed driving costs for small, medium, and large sedans. Driving
costs in each category are based on the average costs for five
top-selling models selected by AAA. By size category, they a

Small Sedan – Chevrolet Cruze, Ford Focus, Honda Civic, Nissan Sentra
and Toyota Corolla.

Medium Sedan – Chevrolet Impala, Ford Fusion, Honda Accord, Nissan
Altima and Toyota Camry.

Large Sedan – Buick Lucerne, Chrysler 300, Ford Taurus, Nissan Maxima
and Toyota Avalon.

Though not part of the AAA composite average, SUV and minivan
information is also included in 'Your Driving Costs' to help buyers
estimate operating costs for these types of vehicles. Selected models
include:

SUVs – Chevrolet Traverse, Ford Explorer, Jeep Grand Cherokee, Nissan
Pathfinder and Toyota 4Runner.

Minivans – Dodge Grand Caravan, Kia Sedona, Honda Odyssey, Nissan
Quest and Toyota Sienna.

As North America's largest motoring and leisure travel organization,
AAA provides more than 53 million members with travel, insurance,
financial and automotive-related services. Since its founding in 1902,
the not-for-profit, fully tax-paying AAA has been a leader and
advocate for the safety and security of all travelers. AAA clubs can
be visited on the Internet at AAA.com.

Seems awful high! Say fifty bucks a week in gas, $2,600 a year. Over
$6K for oil changes and maintenance! Damn if I spend that, and I drive
around 15K miles a year.

On 05/07/2012 05:49 PM, no way wrote:
> Seems awful high! Say fifty bucks a week in gas, $2,600 a year. Over
> $6K for oil changes and maintenance! Damn if I spend that, and I drive
> around 15K miles a year.

a lot of that may be depreciation... most people (maybe you're not one
of them? I know I'm not) drive vehicles that still are not fully
depreciated so that factors into CoO...

nate

--
replace "roosters" with "cox" to reply.
http://members.cox.net/njnagel

On 05/07/2012 02:49 PM, no way wrote:
> Seems awful high! Say fifty bucks a week in gas, $2,600 a year. Over
> $6K for oil changes and maintenance

[including parts], and insurance, and depreciation...


>! Damn if I spend that, and I drive
> around 15K miles a year.


--
nomina rutrum rutrum

On May 7, 5:49*pm, no way > wrote:
> Seems awful high! Say fifty bucks a week in gas, $2,600 a year. Over
> $6K for oil changes and maintenance! Damn if I spend that, and I drive
> around 15K miles a year.

"<> ownership costs are assumed to be on a purchase of a new vehicle,
depreciated over five years. Finance charges are based on five year
loan at six percent interest with a 10 percent down payment."

"According to the National Automobile Dealers Association, the average
price of a new car sold in the United States is $28,400."
http://www.ftc.gov/bcp/edu/pubs/cons...tos/aut11.shtm
-----

- gpsman

On 05/08/2012 05:22 AM, gpsman wrote:
> On May 7, 5:49�pm, no > wrote:
>> Seems awful high! Say fifty bucks a week in gas, $2,600 a year. Over
>> $6K for oil changes and maintenance! Damn if I spend that, and I drive
>> around 15K miles a year.
>
> "<> ownership costs are assumed to be on a purchase of a new vehicle,
> depreciated over five years. Finance charges are based on five year
> loan at six percent interest with a 10 percent down payment."
>
> "According to the National Automobile Dealers Association, the average
> price of a new car sold in the United States is $28,400."
> http://www.ftc.gov/bcp/edu/pubs/cons...tos/aut11.shtm
> -----
>
> - gpsman

how to say "rtfa" without actually saying it!


--
nomina rutrum rutrum

On May 8, 8:22*am, gpsman > wrote:

> "<> ownership costs are assumed to be on a purchase of a new vehicle,
> depreciated over five years. Finance charges are based on five year
> loan at six percent interest with a 10 percent down payment."

> - gpsman

...."costs to own and operate a sedan in the U.S."

Well maybe I missed it. Where, in the original post, does it say "to
own and operate a "new" vehicle only?!?!

On May 8, 9:32*am, jim beam > wrote:

> > "<> *ownership costs are assumed to be on a purchase of a new vehicle,
> > depreciated over five years. Finance charges are based on five year
> > loan at six percent interest with a 10 percent down payment."
>
> how to say "rtfa" without actually saying it!
>
> --
> nomina rutrum rutrum

...."costs to own and operate a sedan in the U.S."

Wel maybe I missed it. Where, in the original post, does it say "to
own and operate a "new" vehicle only?!?!

On 05/08/2012 06:49 AM, no way wrote:
> On May 8, 9:32�am, jim > wrote:
>
>>> "<> �ownership costs are assumed to be on a purchase of a new vehicle,
>>> depreciated over five years. Finance charges are based on five year
>>> loan at six percent interest with a 10 percent down payment."
>>
>> how to say "rtfa" without actually saying it!
>>
>> --
>> nomina rutrum rutrum
>
> ..."costs to own and operate a sedan in the U.S."
>
> Wel maybe I missed it. Where, in the original post, does it say "to
> own and operate a "new" vehicle only?!?!
>

the clue should have been the "cost" being higher than the whole value
of the vehicle you're driving now...


--
nomina rutrum rutrum

On May 8, 9:48*am, no way > wrote:
> On May 8, 8:22*am, gpsman > wrote:
>
> > "<> ownership costs are assumed to be on a purchase of a new vehicle,
> > depreciated over five years. Finance charges are based on five year
> > loan at six percent interest with a 10 percent down payment."
> > - gpsman
>
> ..."costs to own and operate a sedan in the U.S."
>
> Well maybe I missed it. Where, in the original post, does it say "to
> own and operate a "new" vehicle only?!?!

"<> ownership costs are assumed to be on a purchase of a new vehicle
<>"

If we have to explain why that sentence does not contain the word
"only", you wouldn't understand.

If I wrote "it's raining" would I need to specify "outside"...?
-----

- gpsman