Page 6 - Explore Your AAA – AAA Southern Pennsylvania – Holiday 2021

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EXPLORE | MEMBER NEWS HOLIDAY EDITION 2021
Sticker Shock:
Owning a New Vehicle Costs Nearly $10,000 Annually
Shop Online with Confidence This Holiday Season
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According to the latest research from AAA, the average annual cost of new vehicle ownership is $9,666, or $805.50 per month. The biggest factor pushing the nearly $10,000 annual price tag is depreciation. It accounts for 40 percent of all ownership expenses outpacing additional costs like fuel and maintenance. With low inventory at dealerships due to the semi-conductor chip shortage, AAA urges new car buyers to be aware of all the expenses associated with ownership so that they can negotiate the best deal for their budget.
The 2021 AAA Your Driving Cost study reviewed nine categories of vehicles – consisting of 45 models – to determine the average annual operating and ownership costs of each. AAA selects top-selling, mid-priced models and compares them across six expense categories: fuel, maintenance/repair/tire costs, insurance, license/registration/ taxes, depreciation and finance charges. Depreciation – a measure of how quickly a car loses value – remains the single biggest cost of new vehicle ownership. Other key findings of this year’s Your Driving Costs include:
• Fuel costs:
Based on data from May 2020 - May 2021, on average, fuel costs 10.72 cents per mile. This does not include recent spikes in gas prices. Fuel costs vary widely by vehicle type, ranging from a low of 3.66 cents per mile for electric vehicles, to 15.81 cents per mile for pickup trucks.
• Maintenance, repair and tire costs:
On average, maintenance and repair costs 9.55 cents per mile. Just like fuel, electric vehicles are on the lower end of the spectrum, costing 7.70 cents per mile, while medium sedans are the most expensive at 10.43 cents per mile.
• Finance charges:
The cost of vehicle loans decreased due to a drop in the prime lending rate. The average interest rate in 2021 is 4.12 percent, which is 1.056 percentage points lower than last year.
For more information on the AAA Your Driving Costs study, go to AAA.com/your-driving-costs-2021.
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The freedom to do your holiday shopping online shouldn’t mean compromising your personal or financial information. In a time when data breaches are making headlines, and cyber theft is a major threat, it’s important to keep your primary accounts and personal information out of harm’s way.
While it’s easy to pay with plastic, choosing a secure card – like a reloadable prepaid card – will eliminate worry and limit exposure to potential fraud. Benefits of shopping online this holiday season with a reloadable prepaid card:
• Reloadable prepaid cards are not linked to a bank or credit account, so finances and personal information are protected against virtual spending risks.
• Using prepaid can help with holiday budgeting and prevent overspending since there is no borrowing money or running up debt. Cardholders set the amount available to spend and reload funds when necessary.
• Those who want ultimate peace of mind choose prepaid cards with chip-and-PIN technology and the backing of major payment networks, such as Visa®. Prepaid can be used anywhere the major network is accepted. If a card is lost or stolen, some cards even offer emergency services, like cash and card replacement.
• Many prepaid cards offer free and simple ways to access and manage account information. Popular card management tools include online account access and smartphone apps to monitor card balance and transaction activity – anytime, anywhere.
Enjoy all of these benefits and more with a AAA MemberPay Visa Prepaid Card. Purchase one at your local AAA office or online at AAA.com/MemberPay.
Card is issued by MetaBank®, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. and can be used everywhere Visa debit cards are accepted.