The average American spends $12,182 every year on their vehicle.
See where your money actually goes.
Select a vehicle type or enter your own numbers to see the true cost of ownership over 5 years.
Compare the 5-year costs of two vehicles directly.
How common vehicle types stack up over 5 years (12,000 miles/yr, $3.50 gas, 6.5% APR).
| Rank | Vehicle Type | Purchase Price | 5-Year Depr. | Fuel/Energy | Total 5-Yr Cost |
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Most buyers focus on the monthly payment and ignore depreciation. A new car typically loses 15% of its value each year for the first few years. On a $40,000 truck, that's $6,000 gone in the first 12 months alone—more than gas and insurance combined.
If you invest the difference between an expensive luxury car and a reliable used car into an index fund returning 8%, over a decade that difference can compound into tens of thousands of dollars. The true cost of an expensive car includes the wealth you didn't build.
This calculator estimates 5-year ownership costs based on standard industry formulas. Depreciation assumes 15% for years 1-2 and 10% for years 3-5 for new cars, and a flat 7% for 5-year-old used cars. Fuel is calculated based on MPG, miles driven, and gas/electricity price. EV efficiency assumes 1 MPGe = 33.7 kWh. Loan payments assume a 60-month term with 0 down (to simplify total cost comparison) at the selected APR. Registration is estimated at a flat $200/year. Taxes and fees vary widely by location and are excluded.
Depreciation is usually the largest hidden cost, often accounting for 40% or more of the total 5-year ownership cost. A new car loses roughly 15% of its value each year for the first few years.
According to AAA, the average American spends over $12,182 per year to own and operate a new vehicle, which includes depreciation, insurance, fuel, maintenance, and taxes.
Yes. A 5-year-old used car has already experienced its steepest depreciation. While maintenance costs might be slightly higher, the savings on depreciation and insurance typically make used cars significantly cheaper to own overall.
EVs generally have much lower fuel and maintenance costs. However, they may have a higher initial purchase price and sometimes higher insurance rates. Over a 5-year period, EVs often cost less to own than comparable gas vehicles.
Buying is generally cheaper in the long run, especially if you keep the car for more than 5 years. Leasing typically results in higher lifetime costs but offers lower monthly payments and a new car every few years.