Average Cost To Own A Car In CT Tops $11k Per Year: AAA Study

CONNECTICUT — The average cost to own and operate a car in Connecticut is about $11,000 per year, which exceeds the national average, according to a new AAA study. The national average cost was about $10,700.

AAA evaluated costs for mid-priced vehicles, including: fuel, maintenance, insurance, depreciation and finance charges. The study assumes five years of ownership,15,000 annual travel miles and a fuel price of $4 per gallon.

Small sedans have the lowest annual ownership costs at about 55 cents per mile. Electric vehicles —which have lower maintenance and fuel costs than internal combustion cars — came in second at about 60 cents per mile. An EV owner spends about 4 cents per mile to charge at home, while a similar gas-powered car costs 18.4 cents per mile to fuel.

Compact SUVs benefited from lower insurance charges and cost about 62 cents per mile to own.

New and used vehicle costs have skyrocketed the past couple of years due to supply chain issues. New vehicle prices increased 10.4 percent from July 2021 to 2022, and used vehicles were up 6.6 percent, according to the U.S. Bureau of Labor Statistics.

The average transaction price for a new car eclipsed $47,000 in December, according to Kelley Blue Book.

Luxury vehicle sales took up a bigger market share, which also helped drive up the average transaction price, according to KBB. The average luxury buyer in December paid more than $64,800 for a new vehicle, which was $1,300 more than sticker price. Luxury vehicles on average sold for $3,000 below MSRP a year prior.

“Consumers are paying more attention when purchasing a vehicle since so many products are more expensive right now,” said Alec Slatky, Director of Public & Government Affairs for AAA Northeast in a statement. “Especially as fuel prices remain elevated over last year, drivers want to know the true costs of owning a car beyond their monthly payment.”

Cost of ownership can vary widely and depend on many factors. AAA has a free calculator that lets consumers compare the estimated cost of ownership based on the vehicle and annual number of miles driven. The U.S. Department of Energy also has its own calculator that takes even more factors into consideration.