MINNEAPOLIS, March 21 /PRNewswire/ -- According to an annual AAA study,
the average cost of driving a passenger vehicle in the United States is nearly
unchanged from one year ago, despite higher costs for gasoline. This year,
AAA estimates it will cost an average of 56.1 cents per mile, or $8,410 per
year, to own and operate a new passenger car, compared to $56.2 cents per
mile, or $8,431 annually, in 2004.
Offsetting higher gasoline costs are reductions in the annual average cost
of insurance, licensing, registration and taxes, as well as tires and
maintenance. The cost of gasoline in 2005 is estimated to average 8.5 cents
per mile, or $1,285 per year, compared to 6.5 cents per mile, or $975, last
year.
AAA's study calculates the average costs of all expenses associated with
owning and operating a vehicle over five years and 75,000 miles of driving
using a compact, mid-size and large vehicle. Covered expenses include vehicle
depreciation, insurance, fuel, tires, license, registration and taxes, vehicle
financing, routine maintenance and repair.
Vehicle depreciation, insurance and routine maintenance top the list as
the three most expensive costs attributed to driving an automobile. AAA
estimates the average new car will depreciate $3,879 per year of ownership,
compared to $3,782 in 2004. The second largest expense is full insurance
coverage estimated to average $1,288 per year compared to $1,603 in 2004.
Routine maintenance, including the manufacturer's recommended maintenance
operations and tire expense, is estimated to cost 5.9 cents per mile, or $885
for the year, compared to 6.1 cents per mile, or $915, last year.
AAA calculates typical finance charges for 2005 are $739 per year, based
on a 5 year loan at 6 percent interest with a 10 percent down payment. In
2004, AAA estimated finance changes at $741 per year.
It should be noted that AAA's estimated average driving costs are higher
than the Internal Revenue Service's allowance for business mileage of 40.5
cents per mile. The IRS never has allowed full reimbursement of all expenses
associated with automobile ownership and use.
To conduct this study, AAA uses three domestically built 2005 cars - a
subcompact Chevrolet Cavalier LS, a mid-size Ford Taurus SEL and a full-size
Mercury Grand Marquis LS. These similarly equipped vehicles include air
conditioning, automatic transmission, power steering, AM/FM stereo, dual air
bags, antilock brakes, cruise control, tilt steering wheel, tinted glass and a
rear-window defogger.
AAA offers automotive, travel, insurance and financial services to more
than 45 million members in the United States and Canada. AAA Minnesota/Iowa
is part of The Auto Club Group, with 4.1 million members in eight Midwest
states. AAA Minneapolis serves nearly 176,000 members in Hennepin County.
AAA's ANNUAL DRIVING COST ESTIMATES
Year Cost per Year Cost per Mile
2005 $8,410 56.1 cents
2004* $8,431 56.2 cents
2003 $7,754 51.7 cents
2002 $7,533 50.2 cents
2001 $7,654 51.0 cents
2000 $7,363 49.1 cents
1999 $7,050 47.0 cents
1998 $6,908 46.1 cents
1997 $6,723 44.8 cents
1996 $6,389 42.6 cents
1995 $6,185 41.2 cents
1994 $5,916 39.4 cents
*AAA adopted a revised methodology for calculating driving costs to more
fully capture costs incurred by average drivers.
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