NORFOLK, Va. — While we continue to face rising prices on everything from groceries to housing, a new study revealed that there’s one area where consumers are finally seeing some relief: Car ownership.
AAA's study found that the cost of owning and operating a new vehicle has actually decreased in 2025.
To understand what's "driving" this trend, I spoke with Holly Dalby from AAA Tidewater, who explained how the organization calculates the annual cost of car ownership.
“We look at fuel, maintenance and repair, tires, insurance, license registration, and taxes,” said Dalby.
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AAA bases its analysis on five years of vehicle ownership, assuming that around 50,000 miles are driven each year. This comprehensive look considers not only day-to-day expenses but also long-term depreciation.
Dalby pointed to two primary factors behind the recent dip in ownership costs: Lower gas prices and reduced vehicle depreciation.
“Looking at the average vehicle, it's now losing about $4,300 in value per year, compared to a $4,700 loss in value last year,” she said, adding that this indicates vehicles are holding their value slightly longer than before.
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The numbers reflect that trend. Between 2022 and 2024, the monthly cost of owning a new vehicle climbed from $894 to $1,024 — however, that cost dropped to $964 per month in 2025.
Interestingly, the report also reveals a reversal in cost dynamics between electric and gas-powered vehicles.
“Financing, insurance fees, and depreciation tend to be higher for electric vehicles than for gas-powered ones,” Dalby explained.
As a result, EV ownership is currently more expensive than owning a traditional fuel-powered vehicle.
So what does this mean for prospective car buyers? There’s a choice to be made: Wait and see if prices drop further in 2026, or take advantage of the current decline in costs. Either way, it’s a rare piece of financial good news — especially in a year where rising costs continue to dominate headlines.
