AAA study shows vehicle maintenance costs have risen by an estimated $115 per month
(Ty Wright/Bloomberg via Getty Images)
PHOENIX - Purchasing a car can be a thrilling experience, but in many cases it can become an added stressor among a list of bills to pay.
According to a report by AAA, the average monthly cost to take care of a new vehicle is $1,024.71.
The report also states that cars lose $4,680 worth of value on an annual basis.
Factors driving the rising new ownership costs include depreciation, finance charges and car prices.
Finance charges have increased by 6% year-over-year, according to the study.
AAA found that annual finance charges accounted for $1,332 of the $12,297 average annual payment needed to maintain car ownership.
Overall, car prices increased by 0.7%, according to the study.
"When considering purchasing a new or used vehicle, it's important to understand all costs associated with owning and operating a car monthly and annually," wrote Todd Burger, Chief Automotive Officer for AAA Mountain West Group in an email.
The auto industry is one that's been hit by crippling inflation, similar to grocery stores, that affects personal weekly budgeting.
AAA suggested making sure that budgeting for operating costs and ownership should be calculated before purchasing a new car.
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"A vehicle purchase is a big financial commitment and should be treated as a business decision," Burger noted.
Discounts on used and new vehicles can be found online and at local AAA locations in the Valley.
Other helpful tools provided by AAA include their driving cost calculator, car guide and repair cost calculator.
Hybrid vehicles provide a reasonable option
Hybrid vehicles were found to have the second-lowest total ownership costs behind small sedans, benefiting from efficient price-per-gallon metrics and low maintenance costs.
"Hybrid vehicles are a reasonable, affordable option for those who want to try the benefits of electrification," said Greg Brannon, AAA’s director of automotive research.