Page 14 - AAA Now! – AAA Shelby County – November/December 2021

AUTOMOTIVE SERVICES
Sticker Shock:
Owning a New Vehicle Costs Nearly $10,000 Annually
AAA advises car buyers to budget for more than the monthly payment as car prices increase
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% 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.
“Consumers have to remember the expense of owning a car goes far beyond the monthly payment,” said Greg Brannon, AAA’s director of automotive engineering and industry relations. “Plus, we are seeing costs increase for a number of products recently, and cars are no exception. This trend will likely continue as new vehicles come equipped with the latest technology, which naturally drives up the sticker price.”
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 (40%) of new vehicle ownership. Other key findings of this year’s Your Driving Costs include:
FUEL COSTS:
On average, fuel costs 10.72 cents per mile. This is based on data from May 2020 – May 2021, which 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.
Save 30¢/gal*
on your first fill-up at Shell
when you join the Fuel Rewards® program from 11/1/21 to 12/31/21 and complete your first transaction within 30 days of joining. After that receive Automatic Gold Status** and save 5¢/gal on all your fill-ups with no fill-up requirements. Combine your Gold Status with Fuel Rewards® savings earned from qualifying purchases to save even more on your fill-ups.
*Sign-up Bonus: To qualify for this offer, you must: be a AAA member and join the Fuel Rewards® program for the first time between 11/1/2021 at 12:00 AM EST and 12/31/2021 at 11:59 PM EST via www.AAA.com/Shell. Limit 20 gal. See www.AAA.com/Shell for full terms and conditions. **Automatic Gold Status: Restrictions apply. To qualify for this Gold Status offer, you must: be a AAA member with a linked Fuel Rewards® account (via www.AAA.com/Shell). Limit 20 gal. See www.AAA.com/Shell for full terms and conditions.
Join now at AAA.com/shell
Going home for the
Holidays?
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NOVEMBER/DECEMBER 2021