Disclosure: ShopBuyZones is reader-supported. This guide links to other guides on our site, and some of those guides include affiliate links that may earn us a commission at no extra cost to you.
Most people know what their car payment is. Far fewer know what the car actually costs them once insurance, gas, repairs, tires, and the slow loss of value are added in. The real number is bigger than most drivers expect, but the good news is that a lot of it is within your control. Here is what owning a car costs in 2026, and 12 practical ways to bring the number down.
What Does It Cost to Own a Car in 2026?
AAA publishes an annual study called Your Driving Costs, and the 2026 edition puts the average cost of owning and operating a new vehicle at $12,863 per year, or about $1,072 per month. That figure assumes 15,000 miles of driving per year over five years, and an average new-vehicle sticker price of $39,376.
Here is where some of that money goes, according to the AAA figures:
- Depreciation: about $4,422 per year. This is the biggest single cost, and it is invisible because you never write a check for it. It is simply the value your car loses as it ages.
- Insurance: about $2,098 per year.
- Finance charges: about $1,184 per year for people who borrow to buy the car.
- Fuel: AAA priced regular gasoline at about $4.15 per gallon in this study.
- The rest is maintenance, repairs, tires, registration, and fees.
What you drive matters a lot. AAA found a gas-powered medium sedan costs about $10,582 per year, while a half-ton pickup truck runs about $18,254 per year. A small sedan comes in around 62 cents per mile, and a pickup costs about $1.10 per mile.
One important note: these are figures for new vehicles. If you drive an older car, your depreciation will be much lower, but you may spend more on repairs. Your own total will differ, and that is exactly why it helps to know where the money goes.
12 Ways to Cut Your Car Costs
1. Buy the car for the total cost, not the payment
A lower monthly payment can hide a higher total cost. Compare cars on insurance, fuel, and typical repair costs, not just price. A common rule of thumb is to keep all car costs combined (payment, insurance, gas, and maintenance) below 15 to 20 percent of your take-home pay. Our no-nonsense guide to buying a car goes deeper on this.
2. Let someone else take the biggest depreciation hit
Since depreciation is the largest cost, a car that is a few years old has already lost much of that value. A well-maintained used car can cost far less to own per year than a new one, provided you check its history and have it inspected before you buy.
3. Keep your loan short and your rate low
Finance charges average about $1,184 per year in the AAA study. Shop for a loan from a bank or credit union before you visit the dealer, and avoid stretching the loan longer than you need to just to get a smaller payment.
4. Shop your car insurance every year
Insurance averages about $2,098 per year, and prices for the same coverage can vary widely between companies. Get a few quotes at renewal time and ask about discounts for bundling, a clean record, or low mileage. Never drop coverage you legally need, though. Compare like for like.
5. Keep your tires properly inflated
The U.S. Department of Energy says that keeping your tires properly inflated can improve gas mileage by about 0.6 percent on average, and up to 3 percent in some cases. It also says mileage drops about 0.2 percent for every 1 PSI that your tires are under-inflated. Properly inflated tires also last longer. A tire inflator is one of the cheapest ways to save money on a car. Check the pressure once a month.
6. Do not pay for an air filter to save gas
The Department of Energy says that in modern fuel-injected cars, replacing a clogged air filter does not improve fuel economy, though it can improve acceleration. Replace it when your owner’s manual says to, not because a shop told you it will boost your mileage.
7. Follow the owner’s manual, not the upsell
Your car’s manufacturer publishes the maintenance schedule that keeps the car healthy. Follow it. Be skeptical of extra services that are not listed there, and ask why each one is needed.
8. Fix small problems before they grow
A worn belt, a slow leak, or a squeaky brake is cheap to fix today and expensive to fix after it fails. Regular maintenance almost always costs less than the breakdown it prevents.
9. Read the code before you pay for a check engine repair
A check engine light does not always mean a big bill. Many causes are cheap, and the trouble code tells you where to look. Our guides on what your check engine light actually means and the best OBD2 scanners can help you walk into a shop informed.
10. Get more than one repair quote
For any repair that costs several hundred dollars or more, get at least two quotes and ask for an itemized estimate that separates parts from labor. Prices for the same job can differ significantly from one shop to the next.
11. Do the easy jobs yourself
Wiper blades, a cabin air filter, and many light bulbs are usually quick to replace with basic tools and a short video tutorial. A shop can charge you for labor on jobs that take a few minutes at home. Leave brakes, steering, and anything involving safety to a professional if you are not experienced.
12. Drive smoothly and lighten the load
Hard acceleration and braking waste fuel and wear out parts faster. Remove roof racks and heavy items you do not need, since extra weight and wind drag both lower your mileage. Combine short errands into one trip so the engine stays warm.
Frequently Asked Questions
Is it cheaper to keep an old car or buy a new one?
Often it is cheaper to keep a reliable car you already own, because you avoid new-car depreciation and a new loan. It stops making sense when repairs regularly cost more than the car is worth or when the car is no longer safe or dependable. Compare a year of repair costs against a year of payments.
What is the biggest hidden cost of owning a car?
Depreciation. According to AAA it is the largest single cost of owning a new vehicle, and it never shows up on a bill.
Are electric cars cheaper to own?
Charging at home costs much less than gasoline per mile, AAA found. But in its 2026 study, the fuel savings did not make up for a medium electric sedan’s higher overall costs, which came out about 29 percent higher per year than a comparable gas sedan. Your own results depend on your electricity rates, how much you drive, and available incentives.
The Bottom Line
Owning a car costs more than the monthly payment suggests, with AAA putting the average new-vehicle cost at $12,863 per year. You cannot control depreciation once you have bought the car, but you can control the loan, the insurance, the tires, the maintenance, and how well you shop for repairs. Even three or four of the habits above can add up to hundreds of dollars a year.
Sources
- AAA Newsroom: New Vehicle Ownership Costs Hit $12,863 Annually
- Repairer Driven News: AAA: It costs $12,863 annually to own a new vehicle
- U.S. Department of Energy: Gas Mileage Tips: Keeping Your Vehicle in Shape