THE SHOP

October '17

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80 THE SHOP OCTOBER 2017 \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ wning and operating a new vehicle in 2017 costs drivers an average of $8,469 annually, or $706 each month, according to a new study from AAA. The annual evaluation of driving costs reveals that small sedans are the least expen- sive vehicles to drive, at $6,354 annually. Also, small SUVs ($7,606), hybrids ($7,687) and electric vehicles ($8,439) all offer lower- than-average driving costs to U.S. drivers, according to the study. Conversely, of the nine categories included in the evaluation, pickups are the most expen- sive vehicles to drive, at $10,054 annually. "Determining the cost of a new vehicle is more than calculating a monthly pay- ment," says John Nielsen, AAA's managing director of automotive engineering and repair. "While sales price is certainly a factor, depreciation, maintenance, repair and fuel costs should be equally important considerations for anyone in the market for a new vehicle." In addition to analyzing the ownership costs for sedans, SUVs and minivans, AAA's Your Driving Costs study added four new vehicle segments in 2017: small SUVs, pickups, hybrids and electric vehicles. The numbers are based on 15,000 miles driven annually. To estimate the overall cost to own and operate a new vehicle, AAA evaluated 45 2017 model-year vehicles across nine categories and focused on mid- range, top-selling models. Annual driving cost is based on a sales- weighted average of the individual costs for all of the vehicle types. Key findings include: Depreciation Depreciation is the biggest, and most often overlooked, expense associated with pur- chasing a new car, the study found. New vehicles lose an average of $15,000 in value during the first five years of ownership. Maintenance and repair To calculate annual maintenance and repair costs, AAA examined factory-recommended maintenance, replacement tires, extended warranty costs and services associated with typical wear and tear. New vehicles, on average, will cost a driver $1,186 per year to maintain and repair. Fuel Fuel costs vary significantly by vehicle type, ranging from 3.68 cents per mile (electric vehicles) to 13.88 cents per mile (pickups). New vehicle owners, on average, will spend just over 10 cents per mile, or about $1,500 annually. Electric Vehicles New to the Your Driving Costs study in 2017, AAA found that electric vehicles have lower-than-average driving costs at $8,439 per year. Without a gasoline engine to maintain, electric vehicles have the lowest annual maintenance and repair costs, at $982 per year. Depreciation, however, is currently extremely high for these vehicles, losing an average of nearly $6,000 in value every year. The Cost of New Vehicle Ownership O \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ ONE MORE THING... Owning and operating a medium SUV like the 2018 Jeep Grand Cherokee Trackhawk costs approximately $9,400 annually, according to a study by AAA. (Photo courtesy FCA USA) VEHICLE TYPE ANNUAL COST* VEHICLE TYPE ANNUAL COST* Small Sedan $6,354 Minivan $9,146 Small SUV $7,606 Large Sedan $9,399 Hybrid $7,687 Medium SUV $9,451 Medium Sedan $8,171 Pickup Truck $10,054 Electric Vehicle $8,439 Average $8,469

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