AAA Says New Car Ownership Got A Bit Cheaper In 2025

Over the past few years, the prices of both used and new vehicles have soared to new record heights, largely fueled by scarcity, demand, and soaring inflation, and there aren’t many affordable options out there anymore. Coupled with other vehicle ownership expenses like insurance and taxes, that means new car ownership costs have increased by a large margin as of late, too. This is obviously not ideal for a big portion of the population that may not have a ton of excess money laying around to pay for such things, but the good news is, new car ownership has gotten a bit cheaper this year thus far.

According to the latest Your Driving Costs analysis from AAA, the total cost of new car ownership declined by $719 this year compared to 2024, coming in at $11,577 annually, or $964.78 per month. AAA notes that this drop can be attributed to lower fuel prices, more affordable vehicle options, depreciation, and lower finance charges, specifically. Finance charges decreased by 15 percent, from $1,332 in 2024 to $1,131 in 2025, for starters.

Meanwhile, fuel prices have declined by 12.8 percent to 13 cents per mile, as the average cost of regular grade gas averaged $3.151 per gallon – down from $3.539 last year. However, electricity prices have risen slightly, from 15.9 cents per kilowatt hour in 2024 to 16.7 cents in 2025, making the act of charging an electric vehicle a bit pricier. As for depreciation – the difference between a vehicle’s purchase price and its resale value – it also decreased from $4,680 annually in 2024 to $4,334 in 2025, notable because it’s oftentimes the greatest new vehicle ownership cost of all.

“It might be tempting to rush to the dealer for a new car when you notice a drop in ownership costs this year,” said Greg Brannon, AAA’s director of automotive research. “However, consumers should factor in all the expenses involved before making any commitments.”