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Cost To Own And Drive A Vehicle Drops To 6 Year Low

By Network Indiana

Posted April 8, 2016

The annual cost to own and drive a vehicle in the United States has fallen to a six-year low of $8,558.

Greg Seider, public affairs manager for AAA Hoosier Motor Club credits low gas prices.

"One year ago today we were paying $2.25 a gallon for self serve regular. Today the current statewide average is $1.93," says Seider.

"We've seen a dramatic drop off in the overall price of crude oil. The demand for gas was down of course during the winter months. Did not have any major hurricane problems this fall and over production of stagnant oil that is right now not being used. There really haven't been any unusual occurrence in the Middle East so there are a lot of positive variables that are really helping gas prices right now."

According to the AAA's 2016 Your Driving Costs study, this year a driver can expect to spend around $0.57  for each mile driven or approximately $713 per month, to cover the fixed and variable costs associated with owning and operating a car.

"Thanks to lower gas prices, American drivers can expect to save hundreds of dollars in fuel costs in 2016," said John Nielsen, AAA's managing director of Automotive Engineering and Repair. "Fortunately, this annual savings more than offsets the moderate increases in maintenance, insurance, finance charges and other costs associated with owning and operating a vehicle."

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