NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — When making the decision between buying a new and used vehicle, the cost of operation is one of the major considerations. AAA says that cost, when it comes to new cars, is increasing.
"Based on the latest figures, the average costs of owning and operating a new vehicle this year has increased significantly, with an annual expense of $12,182, or a monthly cost of $1,015," said Shawn Steward with AAA Kansas. "This is a pretty big increase from 2022, when the average yearly cost was only $10,728 or $894 monthly."
The overall average manufacturer’s suggested retail price (MSRP) of the new vehicles in the 2023 study is $34,876.
"The supply of vehicles has certainly been an issue," Steward said. "If you are looking for a vehicle, it's best to start early. We've seen this over the past couple of years, as we've come out of the COVID pandemic, limited inventory, consumers have fewer choices in a specific vehicle model and they may have to wait for a vehicle to be delivered."
AAA selects top-selling, mid-priced models and compares them across six categories: fuel, maintenance/repair/tire costs, insurance, license/registration/taxes, depreciation, and finance charges. The study assumes a five-year ownership period, with the vehicle being driven 15,000 miles/annually (or a total of 75,000 miles).
"Before discussing finance rates with a car dealer, make sure that you obtain pre-approval from your financial institution," Steward said. "Getting pre-approved, you'll have a threshold of the best lending rate and you can have more negotiating power with the dealer. Create a budget and factor in the different elements of ownership before you purchase, not just your monthly payment. Also consider insurance, the cost of gas and routine maintenance. All those elements are going to be coming out of your pocket, so it's important to understand that, so you don't get upside down in your vehicle costs."
This year's vehicles have an average annual finance charge of $1,253, a 90% increase from the previous year.
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