How much will a new car cost in 2021: insurance, loans, gas

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The price you pay for a new car is only a fraction of the total cost of car ownership. And these total costs are rising – on average, they are about $ 10,000 per year.

Once you add up costs like car insurance, gasoline, maintenance, registration and financing costs associated with loans, and then considering depreciation (yes, that’s a very real cost), the average cost of owning a new car is $ 9,666 per year, according to the new AAA report

That figure is an all-time high – not surprising given that car prices in general are on the upward trend – and $ 105 more than last year’s average cost of car ownership ($ 9,561) per person. AAA

What can be particularly troubling for family budgets is the fact that the cost of car ownership is rising, even if auto insurance rates stayed flat or even fell due to reduced driving during a pandemic. Car loan financing fees have also decreased due to a decrease in the main lending rate.

Moreover, the estimated cost of ownership is based on a 12 month period ending May 2021, whichever is earlier. gas prices jumped at the national level.

In other words, the new AAA study is likely to significantly underestimate how much it costs to own a new car right now.

Obviously, the costs associated with owning a car can vary greatly, starting with the prepayment you pay for the car. Over the year covered by the latest AAA survey, the average new car price was $ 32,903, up $ 1,500 from a year ago ($ 31,401).

Average prices have risen sharply recently due to the summer car buying season. The average price paid for a new car in July 2021 hit an all-time high of $ 42,736, according to the data. Kelly Blue Book… That’s $ 3,223 more than the bleak sales days at the auto show in July 2020.

Meanwhile, the middle is new electric car now costs over $ 51,000 and the average luxury car buyer pays just under $ 58,000.

The AAA study creates its estimates based on the assumption that the owners are renting a car or get a car loan Rather than paying in cash, financing costs are taken into account. The terms of your loan and how much you drive will have a big impact on your total cost of owning a car. Like the price you pay for auto insurance, which can skyrocket if you reckless driver or even if you just have bad credit

One of the classic ways to lower the cost of car ownership is to use an old used car. This strategy will still save you money, but unfortunately it is not as simple and straightforward as it used to be. It’s because demand for used cars rose sharply during the pandemic, and on average used car prices also reached a record level.