Buying a car is one of the biggest purchase decisions a person will make in their lifetime. While many consumers focus on the sticker price, there are many other costs associated with new car ownership to consider. AAA’s annual Your Driving Costs examines these for a number of vehicle types and provides car buyers with information they can use when shopping for their next new vehicle. 

For 2020, the annual cost to own and operate a new vehicle is $9,561—a slight increase over last year—up by $279. This is a result of an increase in every category except gas prices and finance charges, which both dropped this year likely due to impacts from COVID-19. 

COVID-19 has had several effects on the car-buying market. First, of course, is an overall drop in sales due to a number of economic factors. Then there is the issue of inventory, which is limited due to many car manufacturers halting vehicle production in order to switch to manufacturing ventilators and/or adjusting to consumer demand. As a result, dealerships are not offering as many price incentives as they normally would stimulate sales. In fact, the price of a new car has increased. So, understanding the full cost to own a new car is more important to consumers than ever before. 

There is also an entirely new market of consumers who are buying their very first car and may not realize the cost of ownership beyond the sticker price. Finally, due to the current environment, the traditional car buying process has changed. Buyers are finding that they can do much of the research online and over the phone. In many cases, the entire transaction can be completed virtually without having to visit a dealership.

COVID-19 may also be motivating more people to buy a personal vehicle instead of using public transit, ride-sharing or ride-hailing services. AAA found that one in ten (9%) consumers say they are more likely to consider purchasing a new or used vehicle this year due to COVID-19. For first time buyers, Your Driving Costs coupled with the AAA Car Guide can be a great resource to help determine a budget and the type of car that appeals to a consumer’s individual needs. 

AAA uses five top-selling models in each of nine vehicle size/type categories to calculate ownership costs across a number of areas. These are then combined and averaged to determine the overall cost to own a new car in 2020.

Motorists can use AAA’s Your Driving Costs study and interactive calculator to determine their costs based on their mileage, vehicle type, maintenance needs and more.

AAA data shows that 33% of AAA calls for roadside assistance were for vehicles age nine years or newer. Regular car repair and maintenance are important at any age, but older cars do need a little extra TLC. Car owners who need maintenance can refer to www.AAA.com/AAR to find a list of approved auto repair facilities nearby.