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Average Cost of Driving a New Car

03/28/96

The American Automobile Association has published their annual report on driving costs, and this year the average American will spend $6,398 for the privilege--that's about 42.6 cents per mile.

This year's average driving cost is up $204 over last year's. $97 worth of that increase is attributed to costs incurred through depreciation of your vehicle's value. This year's insurance costs are up $63, vehicle financing costs rose $32, and licensing, registration, and tax costs rose $12. By and large total operating costs (i.e., gas, oil, tires, and maintenance) have not changed since last year.

Average driving costs differ significantly from typical reimbursement payments for business-related use of a personal vehicle. The latter usually take into account only operating costs (e.g., gas, oil, wear) and leave out fixed ownership costs (e.g., insurance, registration, licensing, taxes, etc).

Paul Dever -- The Auto Channel