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.

What makes up the average ($11,577 / year)

By vehicle type (cents per mile, AAA 2025)

*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 Kentucky

• Insurance. Kentucky requires PIP (no-fault) on top of liability, and that shows up in the premium. Compare insurance prices on the VIN before you buy. And do not let it lapse: with no insurance your registration is revoked, the fine is $500 to $1,000, there is up to 90 days in jail, and reinstating a revoked registration costs $40 (KRS 186.040(8)). If you are putting the car away, turn the plate in to the County Clerk BEFORE you cancel the policy.
• Tax at purchase. Kentucky charges a 6% Motor Vehicle Usage Tax, paid to the County Clerk when you title; without it you get no plate (KRS 138.460). The trade-in credit applies the same on a new car and on a used car: the tax is figured on what you pay minus the value the seller allows you for the car you hand over (KRS 138.4603 for a new car, KRS 138.450(16)(a) for a used one). On a used car the sworn sale price cannot come in below 50% of the difference between the trade-in value of the car you are registering and that of the car you traded, per the Department of Revenue's reference manual; with no sworn affidavit, the Department of Revenue sets the price from that manual. The tax is never less than $6. Do not sign an affidavit with a false price: that is a Class D felony with a minimum $2,000 fine per offense (KRS 138.990(10)(a)). If you move to Kentucky with a used car, the tax is figured on the manual's trade-in value, not on what you paid (KRS 138.450(14)). A car titled salvage, rebuilt or hail damage is taxed on what you actually paid, sworn to in an affidavit (KRS 138.450(19)). If you overpaid because the car was in worse shape than the manual assumes, you can claim a refund from the Department of Revenue for up to 4 years (KRS 138.460(12)). On top of that, you pay a yearly property (ad valorem) tax on the car when you renew the registration.
• Climate. In winter the roads are treated with salt and brine, which corrode brakes, lines and the underside of the car; wash the underbody often and check the battery, tires and antifreeze before the cold. Summers are hot and humid, so the A/C and the cooling system work hard.
• 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

1. Take the price you can pay and subtract day-one tax and fees.
2. 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).
3. Get an insurance quote on the specific VIN. It is the line that surprises most.
4. 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.