Photo: WBZ NewsRadio
WESTWOOD, Mass. (WBZ NewsRadio) — A new report from AAA revealed that the cost of car ownership is on the rise.
According to an AAA study, the annual cost of owning a car inclusive of operational, maintenance and insurance fees is up to over $12,000 annually and over $1,000 monthly.
AAA also said that the increase in price can be attributed to the popularity of larger, pricier vehicles with more technology, the pace of depreciation, and the difference between a car’s value upon purchase and when sold.
“While many buyers focus on the monthly payment to determine if a new vehicle is affordable, they might not be considering the true total cost of ownership when buying a new vehicle,” AAA Spokesperson Mark Schieldrop said.
Other factors according to the study that have led to high ownership costs include, car prices, finance charges, maintenance, repair and tire costs, license, registration and fees, and insurance costs.
Car insurance costs in 2024 are now at $1,715 per year according to AAA.
AAA also said that electric vehicles (EV’s) have the second-lowest total ownership costs because of excellent fuel economy and low maintenance costs.
Follow WBZ NewsRadio: Facebook | Twitter | Instagram | iHeartmedia App | TikTok