Rochester households spend a median $575 a month on auto loans and insurance, two of the biggest bills that come with owning a vehicle. And those expenses are only part of the cost of having a car.
AAA's latest analysis estimates the average new vehicle costs $1,071.92 a month, or $12,863 annually, to own and operate when expenses including depreciation, financing, fuel and insurance are considered.
AAA estimated the annual cost at $11,577 in 2025, but cautions that changes to its methodology mean the two years aren't directly comparable.
“Looking at the full ownership picture — including depreciation and other expenses — can help consumers better understand the total cost of each option," said Greg Brannon, AAA’s director of automotive engineering.
Since 2025, fuel prices have seen a 31.8% increase, according to the study, while electricity prices have risen only 7.8%.
What costs more? EVs, gas or hybrid vehicles?
To give car buyers more insight to potential costs of owning a vehicle across different powertrains, AAA compared the cost of a gas-powered vehicle to an EV. Some of the key takeaways include:
- Gas models offered savings compared to EVs and hybrids in cost categories affected by purchase price (i.e. finance charges, taxes, fees, and depreciation).
- EVs delivered the lowest fuel costs, with charging costs for EVs being 66-70% lower than fuel costs for traditional gas vehicles.
- Hybrids were the most consistently lower-cost alternative, costing less annually than gas powered models in medium sedans, compact SUVs, medium SUVs and pickup trucks.
AAA's advice for drivers buying a car in 2026
The vehicle category can make the biggest difference in pricing, according to AAA. Half-ton pickups 48 cents more than small sedans, adding an average of $7,191 to annual costs.
AAA's Your Driving Costs calculator is an online tool available to give compare ownership costs by vehicle category, powertrain, location and driving habits. New York drivers with at least a 600 credit score and 50/50 City/Highway driving ratio can expect to pay an average of $8-9,000 annually for a sedan trim. Drivers with an SUV trim can expect to pay and average of $9-10,000 annually.
—Genae Shields is the Business and Development Impact Reporter, working on mobility stories that focus on how people get around Rochester. As a member of the local community, Genae enjoys learning about emerging businesses and changes that impact Rochester's BIPOC and LGBTQ neighborhoods. She also enjoys supporting local artists and nonprofit organizations. Reach out at gshields@usatodayco.com or on Instagram:@genaebriphoto for questions, comments, or concerns. Thank you for your continued support!
This article originally appeared on Rochester Democrat and Chronicle: Rochester households spend $575 a month on car bills
