The AAA on May 12 released the results of its annual “Your Driving Costs” study, revealing a 2.7 percent decrease in the cost to own and operate a sedan in the U.S. The average cost for sedan owners fell 1.64 cents to 59.2 cents per mile, or $8,876 per year, based upon 15,000 miles of […]
The AAA on May 12 released the results of its annual “Your Driving Costs” study, revealing a 2.7 percent decrease in the cost to own and operate a sedan in the U.S.
The average cost for sedan owners fell 1.64 cents to 59.2 cents per mile, or $8,876 per year, based upon 15,000 miles of annual driving.
Despite increases in maintenance and registration fees, American motorists are “experiencing an overall decrease” in the cost to own and operate a vehicle, Tony
Spada, president and CEO of AAA Western and Central New York, said in a news release.
“A large decrease in fuel costs, and lower tire, insurance and depreciation expenses are saving owners more than one and a half cents on every mile they drive,” Spada said.
Besides the average costs for a sedan, the AAA study also includes figures on costs per mile and year for small, medium, and large sedans, a four-wheel drive sport-utility vehicle, and a minivan.
Fuel costs had the single largest percentage decrease from 2013 to 2014, declining 10.04 percent to 13 cents per mile.
The average cost of regular-grade fuel fell nearly 6 percent, from $3.486 to $3.278 per gallon.
At the same time, vehicle redesigns and improved power-train technologies that take into account higher federal Corporate Average Fuel Economy (or CAFE) standards “has the effect of improving the average fuel economy of sedans used in the study,” according to the AAA.
The AAA calculated fuel costs in the 2014 study using the national average price for regular-unleaded gasoline during the fourth quarter of 2013.
Maintenance costs this year increased nearly 2 percent to 5.06 per mile, on average, for sedan owners, the AAA study found.
The association based its estimates on the cost to maintain a vehicle and perform needed repairs for five years and 75,000 miles, including labor expenses, replacement-part prices, and the purchase of an extended-warranty policy.
Some vehicles had lower costs due to longer service intervals or reduced labor times, but longer labor times and/or an increase in part prices led to higher maintenance costs for other vehicles
AAA experts also identified an “increasing number” of vehicles requiring low-viscosity semi- or full-synthetic motor oils, which cost more than conventional oils but provide better fuel economy, added engine protection, and allow for longer oil-change intervals, according to the news release.
Insurance costs
Average insurance costs in 2014 remain essentially unchanged at an average annual cost of $1,023, compared to $1,029 last year, the study found.
Factors such as the driver and the individual’s driving record, the company issuing the policy, and the geographic region affect variations in insurance rates.
The association based its insurance-cost estimates on a low-risk driver with a clean driving record, a group that saw a “negligible” premium decrease for 2014.
Premium quotes, covering seven states across the country and insurance companies from five AAA clubs, indicated “minor” declines for most small and medium sedans. At the same time, large cars had “small” increases.
The AAA has published “Your Driving Costs” since 1950 when driving a car 10,000 miles per year cost 9 cents per mile, and gasoline sold for 27 cents per gallon.
The study considered variable operating costs, including fuel, maintenance and repair, and tires.
It also factored fixed-ownership costs into the results, including insurance, license and registration fees, taxes, depreciation, and finance charges.
The AAA calculated ownership costs based on the purchase of a new vehicle that a driver operates for more than five years and 75,000 miles. A given driver’s actual operating costs may vary.
Describing itself as “upstate New York’s largest member-services organization,” the AAA Western & Central New York provides nearly 860,000 members with travel, insurance, financial and automotive related service, the organization said.
The AAA Western & Central New York is headquartered in the Buffalo suburb of Williamsville, with Central New York branch locations in Camillus, Cicero, DeWitt, Ithaca, and Watertown.