The costs you do not see
Most people think of a car in terms of the monthly payment and fuel, but the biggest cost of a newer car is usually depreciation: the value it loses each year. A $32,000 car worth $14,000 after six years loses $3,000 a year even though no bill ever arrives for it. Insurance, maintenance, financing, registration and parking add the rest.
AAA publishes an annual "Your Driving Costs" study that puts the average cost of owning and running a new car in the US at well over $10,000 a year. The example here comes to about $8,760 a year, or 73 cents a mile.
Ways to lower it
Buying a reliable car that is a few years old lets the first owner absorb the steepest depreciation. Keeping a car longer spreads its cost over more years. Shopping insurance every year or two, raising deductibles if you have an emergency fund, and paying cash or a large down payment to avoid interest all help.
Common questions
How much does it cost to own a car per year?
AAA estimates are above $10,000 a year for an average new car in the US, including depreciation. Older paid-off cars cost far less.
What is the biggest cost of owning a car?
For new cars, usually depreciation, followed by insurance, fuel and financing.
This calculator gives estimates for planning. Real returns, rates and prices change, so treat the result as a guide rather than a promise. Read how we build and check our calculators.