Study on driving costs shows promise of electric vehicles

Owning and operating a new vehicle in 2017 will cost a driver an average of $8,469 annually, or $706 each month, according to a new study from AAA. The annual evaluation of driving costs reveals that small sedans are the least expensive vehicles to drive at $6,354 annually; however, small SUVs ($7,606), hybrids ($7,687) and electric vehicles ($8,439) all offer lower-than-average costs.

“Determining the cost of a new vehicle is more than calculating a monthly payment,” cautioned Daniel Armbruster, spokesman for AAA New Mexico. “While sales price is certainly a factor, depreciation, maintenance, repair and fuel costs should be equally important considerations for anyone in the market for a new vehicle.”

To estimate the overall cost to own and operate a new vehicle, AAA evaluated 45 vehicles across nine categories and focused on midrange, top-selling vehicles. AAA’s annual driving cost is based on a sales-weighted average of the individual costs for all of the vehicle types.

AAA found that electric vehicles have lower-than-average driving costs at $8,439 per year. Without a gasoline engine to maintain, electric vehicles have the lowest annual maintenance and repair costs, at $982 per year. By relying on electricity instead of gasoline, fuel costs are also significantly lower than average, at under 4 cents per mile. Depreciation, however, is extremely high for these vehicles, losing an average of nearly $6,000 in value every year.

A recent AAA survey revealed that 1 in 6 Americans are likely to choose an electric vehicle, the majority motivated by their lower long-term ownership costs.

“Although electric vehicles can have higher up-front costs, lower fuel and maintenance costs make them a surprisingly affordable choice in the long run,” Armbruster said. “For even lower costs, car shoppers can avoid high depreciation costs by selecting a used electric vehicle.”