True Cost of Vehicle Ownership

AAA’s analysis covers vehicles equipped with standard features and optional equipment including automatic transmission, air conditioning, power steering, antilock brakes and cruise control, to name a few.

Fuel: Fuel costs are based on average prices for the 12 months ending May 31, 2018, as reported by AAA Gas Prices at www.GasPrices.AAA.com. During this period, the regular grade gasoline used by most vehicles in the study averaged $2.523 per gallon. Fuel economy is based on Environmental Protection Agency ratings for 55 percent city and 45 percent highway driving. Electric vehicle charging costs are based on a rate of 12.5 cents per kilowatt hour.

Maintenance, Repair and Tires: These costs include retail parts and labor for routine maintenance specified by the vehicle manufacturer, a comprehensive extended warranty, repairs to wear-and-tear items that require service during five years of operation and one set of replacement tires of the same quality, size and rating as those that came with the car. Sales tax is included on a national average basis.

Insurance: Costs are based on a full-coverage policy for personal use of a vehicle by a driver who is younger than 65 years of age, has more than six years of driving experience, no accidents and lives in a suburban/urban location. The policy includes discounts for passive restraints and an anti-theft system, and provides $100,000/$300,000 personal liability, $25,000 medical, $100,000 property and $25,000/$50,000 uninsured/underinsured motorist coverage. A $500 deductible applies to all collision and comprehensive claims.

License, Registration and Taxes: Costs include all governmental taxes and fees payable at the time of purchase, as well as fees due each year to keep the vehicle licensed and registered. Costs are computed on a national average basis.

Depreciation: Depreciation is based on the difference between the new-vehicle purchase price and the estimated trade-in value at the end of five years and 75,000 miles.

Finance: Costs are based on a five-year loan, with 10 percent down, at the national average interest rate for five credit rating categories weighted by market share. The loan amount includes taxes and the first year’s license fees, both computed on a national average basis.

To figure your fuel cost, begin with a full tank of fuel and write down the odometer reading. Each time you fill up, note the number of gallons, how much you paid and the odometer reading. These figures can then be used to calculate average miles per gallon and cost of fuel per mile.

Vehicle Maintenance

Driving costs are affected by how well your vehicle runs. Performing regular maintenance can ensure more efficient operation and help prevent costly repairs down the road. Below are general checks to keep your vehicle in good operating shape. Read your owner’s manual for more detailed information on your vehicle’s specific requirements. When performing “do-it-yourself” maintenance, always
take appropriate safety precautions.

Fluids:

• Engine oil: Lubricates and cools the engine while cleaning internal parts. Running your car low on oil can cause serious engine damage. Check the level at least once a month.
• Engine coolant: Prevents engine freeze-up in winter and boil-over in summer, and protects the cooling system from rust and corrosion. Check the level at every oil change.
• Brake fluid: Critical to proper brake system performance. Check the level at every oil change.
• Transmission fluid: Helps transfer engine power to the wheels, lubricates internal parts, maintains seals and acts as a coolant. Check the level at every oil change.
• Power steering fluid: Transfers hydraulic pressure to reduce steering effort. Check the level at every oil change.

Gasoline: Use gasoline with the octane rating recommended by the vehicle manufacturer — a higher fuel grade will not provide additional benefits. Gasolines that meet TOP TIER™ standards do a better job of preventing and removing internal engine deposits.

Air Filter: Captures dirt particles and ensures clean airflow to the engine. Inspect at every oil change.

Belts: Most vehicles use a single serpentine belt to operate under-hood accessories such as the alternator, although V-belts still are used in some applications. Inspect at every oil change.

Hoses: Circulate vital liquids such as engine coolant, transmission fluid and power steering fluid. Inspect at every oil change.

Battery: Powers the starter motor, acts as a voltage stabilizer for the electrical system and makes up any shortfall when the alternator cannot meet the vehicle’s electrical demands. Inspect the battery cable connections at every oil change and clean as needed. Always wear eye protection and gloves when servicing a battery.

Tires: As the only part of your vehicle in contact with the road, tires have a major effect on ride, handling, braking and safety. For optimum performance, tires must have adequate tread depth, show no signs of physical damage and be properly inflated. Inspect tires and check inflation pressures at least once a month.