AAA's 2026 Your Driving Costs report pegs the average annual cost of vehicle ownership at $12,182 for a new car — $1,015/month. Most people think of the monthly payment and gas. The true cost includes 8 categories most drivers never calculate.
The full cost breakdown (average new car, 2026)
| Cost category | Annual | Monthly |
|---|---|---|
| Loan payment (avg $700/mo) | $8,400 | $700 |
| Fuel (15,000 miles/yr, 28mpg) | $2,143 | $179 |
| Insurance | $2,100 | $175 |
| Maintenance & tires | $1,200 | $100 |
| Registration & fees | $480 | $40 |
| Depreciation (hidden cost) | $3,700 | $308 |
| TOTAL | $18,023 | $1,502 |
🚗 Your real monthly car cost
How to cut transportation costs by 40-60%
- Buy used, 2–3 years old: A 3-year-old certified pre-owned car has absorbed 30–40% depreciation. You pay for 2019 depreciation, not 2026.
- Pay cash or put 20% down: Eliminates the financing cost entirely (or reduces loan significantly).
- Shop insurance annually: Average savings from switching: $800–$1,200/year.
- Drive less: Every mile is ~$0.30–$0.70 in real cost. Remote work saving 10,000 miles/year saves $3,000–$7,000 annually.
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About the author
Enrique 'Kike' Faúndez is an Information Systems and Management Control Engineer from Universidad de Chile, with master’s degrees in Finance from Universidad de Chile and Industrial Engineering from Pontificia Universidad Católica de Chile. He has 15+ years of experience in regulated financial services across finance, operations, and digital product development. He founded CashControlly in Santiago, Chile, with the conviction that personal financial control should not be a privilege, but an accessible and well-designed tool.
- Master's in Finance, Universidad de Chile
- Master's in Industrial Engineering, Pontificia Universidad Católica de Chile
- Information Systems and Management Control Engineer, Universidad de Chile
- AI and ITIL certifications
- 15+ years in regulated financial services
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