I own a car · Guide for Illinois
The real cost of owning a car, by vehicle type
The price is the least of it. What you pay every year in depreciation, insurance, fuel and maintenance decides whether the car suits you.
The average new car in the United States costs $11,577 a year to own and operate: about 77 cents per mile at 15,000 miles (AAA, 2025). And the biggest piece is not gas or the shop: it is depreciation, the money the car loses in value while it sleeps in your driveway. This guide takes that number apart by vehicle type so you can compare it with yours.
A note on wordingThis is not a "total cost of ownership": it leaves out parking, tolls, tickets and the time you lose. These are the six components AAA measures, with their figures and date. What is not here is not measured.
What makes up the average ($11,577 / year)
| Component | 2025 average | What you can control |
|---|---|---|
| Depreciation | $4,334 / yr | Almost all of it: a 3-year-old used car has already taken the biggest drop. It is the strongest financial argument for buying used. |
| Insurance | $1,694 / yr | Little. Compare every year and raise the deductible if you have savings. What changes by state, below. |
| Finance | $1,131 / yr | All of it: short term, big down payment, pre-approved rate. |
| Fuel | 13¢ / mile | Depends on the car and how you drive. A hybrid cuts it nearly in half. |
| Maintenance, repair and tires | 11.04¢ / mile | Depends on the brand and on doing it on time. See the maintenance schedule. |
| License, registration and taxes | $813 / yr | Almost nothing per year. The hit is the tax at purchase; see your state's section below. |
By vehicle type (cents per mile, AAA 2025)
| Type | ¢ / mile | At 15,000 mi / yr* | Quick read |
|---|---|---|---|
| Small sedan | 55.87 | ≈ $8,380 | The cheapest to own. Low depreciation, low fuel. |
| Hybrid | 63.94 | ≈ $9,590 | Pays back its premium through fuel if you drive in the city. |
| Subcompact SUV | 66.11 | ≈ $9,920 | The middle ground most people buy. |
| Medium sedan | 66.37 | ≈ $9,960 | More room than the small one for about the same cost. |
| Compact SUV | 68.53 | ≈ $10,280 | The best-selling segment; its cost reflects pricier insurance and tires. |
| Electric | 71.21 | ≈ $10,680 | Cheap fuel, high depreciation and insurance. Better if you charge at home. |
| Mid-size pickup | 79.11 | ≈ $11,870 | Capability you pay for every mile. |
| Medium SUV | 83.89 | ≈ $12,580 | Three rows, high fuel, high depreciation. |
| Half-ton pickup | 98.54 | ≈ $14,780 | The most expensive to own. If you don't tow, you are paying for capability you don't use. |
*Simple multiplication of AAA's per-mile figure by 15,000 miles, rounded. AAA calculates on a new car, five years and 75,000 miles, national average. A used car has less depreciation and finance cost, but more maintenance.
What changes in Illinois
- Insurance. Illinois usually lands near the national average for insurance cost, but Chicago and Cook County pay considerably more than the rest of the state. Price it by VIN and ZIP code before you buy.
- Tax at purchase. Dealer purchase: 6.25% state tax plus local rates by location; the dealer collects and reports it (ST-556). Private-party purchase: not a percentage but a flat table (RUT-50). If the price is under $15,000 you pay by vehicle age: $465 (1 year or less) down to $100 (11 years or more). If the price is $15,000 or more you pay by price: $850 (up to $19,999.99), $1,100, $1,350, $1,600 ($30,000–$49,999.99), $2,600, $5,100 or $10,100. Chicago and Cook County add a local tax (RUT-6). Paid when titling, within 30 days. No trade-in credit on RUT-50. On a dealer purchase there is one: the trade-in value comes off the taxable price, and for sales made on or after January 1, 2022 the $10,000 trade-in credit limit that applied in 2020 and 2021 no longer applies (ST-556 instructions). The dealer files Form ST-556 no later than 20 calendar days after delivery. Between close relatives (spouse, parents, siblings, children) the fee is $15.
- Climate. Extreme cold, salt and brine on the roads from November through March, and hot, humid summers. Salt corrodes brakes, lines, frame and exhaust: wash the underbody in winter, test the battery before the first freeze (cold kills it), use winter-rated washer fluid and watch tire pressure, which drops with every temperature fall.
- Comprehensive coverage. It is what pays for hail, flood, fire and theft. If the car is worth anything, it is not optional.
How to use this before you buy
- Take the price you can pay and subtract day-one tax and fees.
- Find the vehicle type in the table and multiply the cents by your real yearly miles (look at your current car: the odometer doesn't lie).
- Get an insurance quote on the specific VIN. It is the line that surprises most.
- If the yearly total is more than you can sustain, step down a segment. A small sedan costs half what a half-ton pickup costs every year, not just on purchase day.
Keep your vehicle information together
Sources
- AAA — Your Driving Costs 2025 (fact sheet, September 2025)
- AAA — New vehicle costs drop to $11,577 (press release)
- Illinois Department of Revenue — Form RUT-50 instructions
- ILSOS — Illinois Secretary of State — Vehicle Services Department
This guide informs; it is not legal or financial advice, nor an offer, quote or appraisal. Every figure carries its source and date; check it is still current before you decide.
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