AAA Report Says Vehicle Operating Costs Holding Steady

Despite considerably lower fuel prices over the last several months, the American Automobile Association's (AAA) recently-released edition of "Your Driving Costs" suggests little has changed this past year when it comes to overall motoring costs for new vehicles. Not surprisingly, SUVs pull the most pocket change per-mile, while small sedans prove to be the easiest on the wallet.

According to AAA, the average cost of operating an SUV breaks down to 68.4 cents per mile, with an annual operating cost of $10,259. This is down a mere 1.3 cents from last year, reflecting lower fuel prices which greatly benefit this thirsty segment. Gains from cheaper fuel however were offset by greater vehicle depreciation and rising insurance premiums, both of which factor into AAA's overall operating cost estimate. Cars are broken down into small, medium and large categories, and return a combined average of 54 cents per mile, representing a difference -- if one can call it that -- of 0.1 cents. A closer examination of the segment reveals that small sedans offer the best overall cost-per-mileage ratio at 42.1 cents, with a yearly total of $6312. Mid-sized sedans mirror the overall average of 54 cents-per-mile, while large sedans take a significant step towards SUVs with a per-mile cost of 65.8 cents. Minivans showed a 1.2 cent-per-mile increase from last year, draining the bank at 58.8 cents with a yearly cost of $8815. Pickup trucks, sports cars and full-size vans were not included in AAA's report.

"While motorists are experiencing relief at the pump, those savings have been countered by revised Environmental Protection Agency fuel economy estimates and increases in vehicle ownership costs such as insurance premiums, depreciation, finance charges and other fees and taxes," said AAA Automotive Vice President Marshall L. Doney.

In determining the total operating cost for a vehicle, AAA considers numerous factors including vehicle maintenance, tire wear, fuel consumption, vehicle registration, insurance, taxes, vehicle depreciation and vehicle financing. If that sounds like a recipe with significant room for interpretation, you're right. For 2009, AAA based its insurance figures on a picture-perfect, married 47-year old male living in a "small city" and driving less than 10 miles to work. Maintenance costs include a set of tires, and also accounts for an extended vehicle warranty, including one claim with a $100 out-of-pocket deductible. Fuel costs are based on an average of $2.30 per gallon, with mileage consisting of 60 percent city driving and 40 percent on the highway. AAA is also quick to point out that they are using the EPA's revised mileage listings which represent more of a "real world" mileage figure.

"AAA was a strong advocate for updating the EPA's guidelines for calculating fuel economy so new car buyers could have a realistic estimate of a vehicle's miles per gallon before their purchase," said Doney.

These figures are based on a yearly average of 15,000 miles. The report also takes into account vehicles driven 10,000 miles as well as 20,000 miles. The averages for each segment are drawn from five vehicles belonging to that class, and include such vehicles as the Ford Explorer, Toyota Corolla, Honda Accord, and the Kia Sedona.

AAA's first edition of "Your Driving Costs" appeared in 1950. In that first report, per-mile vehicle costs were only 9 cents, based on an average of 10,000 miles per year.