Is driving becoming cheaper?
The annual cost of car ownership has fallen to a four-year low.
Lower gas prices and cheap financing have caused the cost of driving to hit its lowest point in four years, according to a recent AAA study.
According to AAA’s 2015 “Your Driving Costs’’ study, the annual cost of owning and operating a vehicle has fallen to $8,698 – a 2 percent drop from last year.
2015 will be a cheap year for car owners, AAA finds.
The study factors in cost of fuel, insurance, taxes, tires, maintenance, and title and registration fees for driving a typical sedan 15,000 miles per year. The 2015 findings mean a U.S. driver can expect to spend roughly $725 per month on their car. This is means a total saving of $178 over the year, AAA’s Managing Director of Automotive Engineering and Repair John Nielsen said in a press release.
Those who drive minivans and sport utility vehicles see even bigger savings this year, with annual driving costs dropping nearly 4 percent from 2014. Like sedans, these vehicles are benefitting from lower gas and finance rates. Minivan owners can expect to spend $9,372 in 2015, while sports utility vehicle owners should budget for $10,624.
Other costs associated with driving rose this year. Insurance rates, tires, depreciation, and maintenance all saw upticks in expenses, but were offset by cheaper gas and finance charges.
If you’ve been considering buying a car, now might be the time to do it. Gas prices are expected to stay low throughout the summer.
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