New Car Driving Costs Increase Slightly for Southern Californians
30 July 1999
New Car Driving Costs Increase Slightly for Southern Californians
LOS ANGELES--July 29, 1999--Despite significant increases in gasoline prices during 1999, the cost to own and operate a car in Southern California increased by less than 1% compared to 1998, according to statistics from the Automobile Club of Southern California.Southern Californians driving 15,000 miles per year can expect to pay $7,319 or 48.8 cents per mile to own and operate a new car this year in Southern California. This compares to 48.5 cents per mile in 1998. The Auto Club analysis shows that ownership costs (insurance, license, registration, taxes, depreciation and finance charges) are $5,519 per year. Operating costs for gasoline, oil, tires and maintenance totaled $1,800.
The costs for driving a five-year-old used car 15,000 miles annually remained the same at $4,697 or 31.3 cents per mile. New car and used car driving costs have been compiled in "Your Driving Costs in Southern California," an Auto Club brochure. The brochure is available free of charge through Auto Club offices.
"Increases in depreciation, fuel and tires were nearly balanced by reductions in insurance rates and a state-mandated reduction in vehicle license fees by 25%," said Steve Mazor, principal automotive engineer. "The result is a negligible rise in driving costs for Southern Californians."
Driving in Southern California continues to be slightly higher that the national average. According to AAA national statistics, new car vehicle costs averaged 47 cents per mile or $7,050.
The Auto Club calculated driving costs by averaging the ownership and operating costs of three American-made vehicles: the sub-compact Chevrolet Cavalier LS, mid-size Ford Taurus SE and the Mercury Grand Marquis LS. Cost estimates were based on a four-year/60,0000 mile ownership period.
The same three models were used to calculate the ownership costs for the five-year-old vehicles with the assumption that the original owner drove the car for five years.
The average costs of owning and operating a car are comprised of the following:
1999 Model Year --------------- Ownership costs -- insurance, license, registration, taxes, finance charges and depreciation $5,519 per year Operating costs -- gas, oil, maintenance and tires (12.0 cents per mile x 15,000 miles) $1,800 per year Total $7,319 or $48.8 cents/mile 1994 Model Year (five years old) -------------------------------- Ownership costs -- insurance, license, registration, taxes and depreciation $2,867 per year Operating costs -- gas, oil, maintenance and tires (12.2 cents per mile x 15,000 miles) $1,830 per year Total $4,697 or 31.3 cents/mile
The Automobile Club of Southern California, the largest affiliate of AAA, has been serving members since 1900. Today, Auto Club members benefit by the organization's emergency road service, financial products, travel agency and trip planning services, highway and transportation safety programs automotive testing and analysis, insurance products and services, automotive pricing, buying and financing programs and legislative advocacy. Information about these products and services is available on the Auto Club's web site at www.aaa-calif.com.