AAA: Cost to own a car hits new high

Don't Waste Your Money

If you own a car, you know that fuel and upkeep is expensive.

But a new report from AAA is eye-opening, when it comes to what we really pay every year to own and drive our cars.

Older Cars can be Costly

Sure, a shiny new car is expensive.

But your older car could be even more expensive, thanks to rising repair costs, the cost of new tires, and lower gas mileage compared to newer models.

AAA says the average car now costs $9,000 a year to operate, and that doesn't include your monthly car payment.  It represents a new all-time high for the cost of car ownership.

Cost to Own a Car

        -Small cars are cheapest, averaging $7,000 a year.

        -A large, full-size car is $9,000.

        -A full-size SUV costs $12,000, due to the extra gas they consume, and higher insurance costs.

Doesn't That Stink?

And from the "doesn't that stink" file, the soaring cost of car repairs.

AAA says the biggest increase this year for car owners is not gas but the cost of repairs: up 11% over 2012. Doesn't that stink?

It blames price increases in factory parts, labor rates, and extended warranties, which are getting more expensive due to too many expensive claims.  An extended warranty that used to cost $900 can now cost nearly $2,000.

Gas Price Good News

The good news is that AAA predicts this summer's gas prices should be lower than last year, assuming no major world crisis or gulf hurricane.

Supplies and refineries are in better shape than a year ago, keeping those gasoline costs down, so you don't waste your money.
    
But check those fees so you don't waste your money.
__________________________

Don't Waste Your Money is a registered trademark of the EW Scripps Co.

"Like" John Matarese on Facebook

Follow John on Twitter (@DWYM)

Print this article Back to Top

Comments