True cost
How Much Does Owning a Car Cost Per Month?
The price right now
$964.78 — per month, average new vehicle driven 15,000 miles a year (AAA Your Driving Costs 2025)
Prices as of July 2026. AAA's figure is the all-in average across new-vehicle categories — small sedans cost less, pickups substantially more. Used cars skip most of the depreciation curve.
Sources: AAA — Your Driving Costs 2025 (new-vehicle average, 15k mi/yr)
What it really costs per year
| Cost item | Per year | Notes |
|---|---|---|
| Depreciation | $4,334 | The biggest cost — invisible until you sell. More than insurance and fuel combined. AAA — Your Driving Costs 2025 (new-vehicle average, 15k mi/yr) |
| Fuel | $1,950 | 13.0¢ per mile × 15,000 miles. AAA — Your Driving Costs 2025 (new-vehicle average, 15k mi/yr) |
| Insurance | $1,694 | Full-coverage average for a low-risk driver. AAA — Your Driving Costs 2025 (new-vehicle average, 15k mi/yr) |
| Maintenance, repair & tires | $1,656 | 11.04¢ per mile × 15,000 miles. AAA — Your Driving Costs 2025 (new-vehicle average, 15k mi/yr) |
| Finance charges | $1,131 | Average loan interest on a new-vehicle purchase. AAA — Your Driving Costs 2025 (new-vehicle average, 15k mi/yr) |
| License, registration & taxes | $813 | Recurring ownership fees. AAA — Your Driving Costs 2025 (new-vehicle average, 15k mi/yr) |
| Total per year | $11,577 | AAA Your Driving Costs 2025 total for the average new vehicle at 15,000 miles/year — $964.78 per month. |
The price in hours of your life
The same yearly figure, converted into working time — one year of owning this costs you:
| Income level | Hourly | Hours of work / year | Work weeks / year |
|---|---|---|---|
| Federal minimum wage | $7.25 | 1,597 | ≈ 39.9 |
| Median US full-time income | $30.83 | 376 | ≈ 9.4 |
| Higher incomeexample | $50.00 | 232 | ≈ 5.8 |
Sources: US DOL — federal minimum, unchanged since 2009 · BLS Usual Weekly Earnings, Q1 2026 — median weekly earnings $1,233 ÷ 40h
Prefer to start from your side of the math? Calculate your exact hourly rate first — it's remembered for the session.
Is owning a car worth it?
For most Americans a car is not optional, which is exactly why the number matters: at $11,577 a year, the average new car quietly consumes more than two months of median-income work — and its single biggest cost, depreciation, never shows up on a bill. The honest move isn't to skip the car; it's to know that a cheaper car, a used car, or one less car in the household buys back real weeks of your life every year.
For
- In most of the US there is no practical alternative — the car buys mobility, jobs and time
- The AAA breakdown makes every component predictable and budgetable
Against
- $11,577/year on average ≈ 376 hours (9+ work weeks) at the median US income
- Depreciation ($4,334/yr) is the largest cost and is completely invisible day to day
- Finance charges add $1,131/yr on the average new-vehicle loan
Frequently asked questions
How much does owning a car cost per month?
About $964.78 per month for the average new vehicle driven 15,000 miles a year, per AAA's Your Driving Costs 2025 study — $11,577 per year all-in, including depreciation, insurance, fuel, maintenance, finance charges and fees.
What is the biggest cost of owning a car?
Depreciation: $4,334 per year on the average new vehicle — more than insurance ($1,694) and fuel (≈ $1,950) combined. It's invisible until you sell or trade in, which is why most people underestimate what their car costs.
How many hours of work does a car cost per year?
At $11,577 per year, the average new car costs about 376 hours of work at the median US full-time income of $30.83/hour — more than nine 40-hour weeks — and about 1,597 hours per year at the federal minimum wage.
Is owning a car worth it?
Where driving is the only practical option, yes — but the average new car still costs over two months of median-income work per year. The lever is the car you choose: a used or cheaper vehicle skips most of the $4,334 yearly depreciation, the single biggest line.