: The average payment for a new car in late 2025 was $767 , while used cars averaged $537 .
: Routine care (oil changes, tires) and repairs cost roughly 10 cents per mile or $900 per year on average. 3. The "Hidden" Cost: Depreciation
: Dealers charge these for processing paperwork, typically ranging from $50 to $600 .
Depreciation is often the single largest cost of car ownership. A car's value "drops like a rock" as soon as it leaves the lot. AAA estimates that depreciation accounts for a significant portion of the total annual ownership cost, which hit an average of in 2025/2026. Budgeting Guidelines
: Some experts recommend keeping your payment alone under 15% of your monthly take-home pay .
: This varies by state but can add thousands to the price (e.g., a 9% tax on a $40,000 car adds $3,600).
: Gas-powered cars currently average about 14.9 cents per mile , whereas EVs typically have the lowest fuel costs.
: The average payment for a new car in late 2025 was $767 , while used cars averaged $537 .
: Routine care (oil changes, tires) and repairs cost roughly 10 cents per mile or $900 per year on average. 3. The "Hidden" Cost: Depreciation cost of buying a car
: Dealers charge these for processing paperwork, typically ranging from $50 to $600 . : The average payment for a new car
Depreciation is often the single largest cost of car ownership. A car's value "drops like a rock" as soon as it leaves the lot. AAA estimates that depreciation accounts for a significant portion of the total annual ownership cost, which hit an average of in 2025/2026. Budgeting Guidelines The "Hidden" Cost: Depreciation : Dealers charge these
: Some experts recommend keeping your payment alone under 15% of your monthly take-home pay .
: This varies by state but can add thousands to the price (e.g., a 9% tax on a $40,000 car adds $3,600).
: Gas-powered cars currently average about 14.9 cents per mile , whereas EVs typically have the lowest fuel costs.