Ford Authority

New Vehicle Ownership Costs Soar Past $12k Per Year

While most everyone is aware that the cost of used and new vehicles has soared to new record heights over the past few years, that isn’t the only expense related to owning a vehicle that has risen dramatically over that time period. In fact, when we consider the other factors associated with new vehicle ownership costs, people were dishing out $9,666 annually – or $805.50 per month – as recently as August of 2021. However, in its most recent Your Driving Cost (YDC) study, the American Automobile Association (AAA) discovered that these numbers have grown substantially over the past two years.

Based on the latest data, AAA found that average new vehicle costs have soared all the way to $12,182 – or a monthly cost of $1,015 – in 2023. That’s a big jump not only when compared to 2021, but also 2022, when these costs totaled an average of $10,728, or $894 per month. Much of this stems from higher suggested retail pricing – $34,876, or $1,575 (4.7 percent) more than last year – but there are other factors at play here as well. For this particular study, AAA looks at six categories – fuel, maintenance/repair/tire costs, insurance, license/registration/taxes, depreciation, and finance charges.

For starters, the current average annual finance charge of $1,253 is a whopping 90 percent higher than 2022, which is driven by soaring interest rates. New vehicle prices also continue to rise while the used market has declined, and new vehicles are currently expected to depreciate by an average of $4,538 per year over five years of ownership, which is 24 percent higher compared to 2022. Finally, the average cost per mile has decreased by roughly two cents, though other factors more than compensate for the drop.

“It’s important for car buyers to clearly understand the costs associated with owning a new vehicle,” said Greg Brannon, AAA’s director of automotive research. “Due to global supply chain issues and constrained inventory of new vehicles, car prices rose dramatically in 2022. And while the situation continues to improve, the spillover effects are keeping prices high.”

We’ll have more insights like this to share soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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  1. StarLord

    Bidenomics working just fine. Thanks Joe.

  2. EB1959

    We ordered our 2022 in Oct ’21. Took 6 months to get it. We paid cash for our truck, which at the time of ordering, $68,895. When we got it, window sticker was at $72,985. The dealer kept his word when he said we’d pay the same price when ordered regardless of the sticker price. Trucks like ours, a month prior to us getting it, were selling above 80 GRAND! When we came to pick it up, someone shopping for a truck said they’d pay us $75 grand for it. Said NO because it’s gonna pull our 2022 “paid for” 5th wheel camper.

  3. TomD

    Dealers are gouging their customers left and right. The charging more than the book price they parts. They are shaking down the customers for $180 per hour for service.
    They charging as much as $10,000 over sticker price for vehicles.
    The little dealers don’t exist anymore. They have all been bought out by the mega dealers. Their focus is on their stock prices not the customers.

  4. Robert Davis

    Ford and others are following the new world order premise supported by our and other governments. Going directly on the attack of the general population by inflating and gouging the customer base. Enforcing and promoting the gap between the super wealthy ruling class and the general working public.
    That said, companies can set whatever retail price they feel will return their investment costs and make a profit. The dealerships have been and will continue to be weeded out by design. This increases the List Price philosophy of the dealerships to maintain cash flow and profit. Ok, do your thing Ford and your cohorts against your customer base. Sell fewer vehicles and charge ever increasing service fees to the point no return. Begging the question, how many vehicles are you going to sell per year, 10,000, 5,000, 1,000, 500, 100, 10. Go ahead and add exorbitant above sticker pricing and reduce your sales to less than half of the targeted sales numbers.
    Ford will review sales numbers and continue to drop dealerships go non target sales. Maybe the “allocations” will go from dealers, to counties, to states. The end goal then will turn to government regulation and we all know how that will work out for you. Sorry for dumping my bucket for those who don’t care one way or the other. We all realize everything changes thru time. But if you jump off the boat before it docks, you will likely drown.
    Yes, I got started on this dissertation by looking at a new Bronco Raptor at my local dealer. It was loaded out and looked like a great vehicle. Much more than I needed or want for that matter. Asked the sales manager what was the price. He responded in somewhat of a cocky remark, the sticker was $91,000 but they are marking it to $101,00. Likely his “Raptor allocation” You go for it, I thought. Someone will probably give you that for it. ‘Big part of the problem right there. Folks stop paying over sticker.


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