According to a recent study conducted by the American Automobile Association (AAA), the cost of owning and maintaining a new sedan in the U.S. is set to increase by 2 percent in 2013, amounting to an additional 1.17 cents per mile. Among the various factors contributing to this rise, maintenance costs have seen the most significant jump.
A new AAA study reveals that the total cost of car ownership will increase by 2 percent in 2013.
Each year, AAA gathers real-world data to calculate the five-year (75,000-mile) cost of driving a new vehicle. The study considers a range of factors, including fuel costs, vehicle repairs, insurance premiums, taxes, licensing fees, depreciation rates, and financing charges. As noted in a report by Kickingtires.com, many variables contribute to the overall cost of car ownership.
John Nielsen, AAA's director of automotive engineering and repair, stated in a press release, "Multiple factors influence the cost of owning and operating a vehicle. This year, changes in maintenance, fuel, and insurance costs have led to an increase in the per-mile cost to just over 60 cents."
Breaking down the cost increases, AAA highlights the following:
- Maintenance costs have surged by 11.26 percent. This encompasses the agency's estimated labor, parts, and extended warranty expenses.
- Insurance costs have risen by 2.76 percent. The study examined rates for a low-risk driver with a clean driving record. However, it's important to note that insurance rates can vary significantly depending on the driver and their location. For this study, AAA utilized data from five insurance providers across seven states.
- Fuel costs have increased by 1.93 percent. Despite advancements in fuel efficiency, the escalating price per gallon has contributed to higher fuel expenses.
In practical terms, it now costs 60.8 cents per mile to operate a vehicle, totaling approximately $9,122 annually. This represents a stark contrast to the initial study conducted in 1950, which reported an average cost of only 9 cents per mile.
While the increase in car ownership costs may seem modest, it underscores the ongoing challenges faced by consumers in managing their transportation expenses. As technology continues to evolve and environmental concerns grow, the automotive industry must adapt to meet these demands while keeping costs manageable for drivers.
In conclusion, the AAA study serves as a reminder of the importance of staying informed about the financial aspects of car ownership. Whether you're purchasing a new vehicle or considering maintenance options, understanding these trends can help you make more informed decisions and potentially save money in the long run.
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