I own a car · Guide for New Mexico
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 New Mexico
- Insurance. New Mexico's minimum (25/50/10) covers little if you cause a serious crash. Compare prices on the VIN before you buy and consider more coverage, including uninsured motorist coverage.
- Tax at purchase. Instead of sales tax, New Mexico charges the Motor Vehicle Excise Tax (MVET): 4% of the price paid, minus the trade-in value (§ 7-14-4). You pay it when you apply for the title (the dealer collects it or you pay MVD). In a private sale, MVD uses the higher of the stated price or 80% of the NADA average trade-in value. The dealer's paperwork fee is not part of the MVET "price paid" (3.11.4.7D NMAC). If the title carries a salvage brand, MVD accepts the stated price and does not apply the NADA floor. If the NADA value applied to you is higher than the car's real value, you can ask for a refund with MVD-10208 and supporting documents. Sales tax paid to another state on the same car is credited. A true gift pays no tax, with MVD-10018 notarized by both parties. No MVET is due from someone who bought the car out of state for personal use at least 30 days before moving to New Mexico (§ 7-14-6). If you do not apply for title within 90 days, there is a penalty of 50% of the tax (§ 7-14-8), which makes the effective rate 6%.
- Climate. High-desert climate: intense sun, heat in the south, cold nights in the north and a lot of dust. Check the battery, tires, hoses and air filter more often, protect the dashboard from the sun and, if you live in or commute into Bernalillo County, the car must pass an emissions test.
- 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)
- NM Taxation and Revenue Department — Motor Vehicle Excise Tax
- MVD — New Mexico Taxation and Revenue Department, Motor Vehicle Division
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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