Most drivers know their monthly loan payment. Few know their true monthly cost once fuel, insurance, maintenance, depreciation, and registration are included.The gap between these two numbers is usually $400 to $700 per month.
AAA Your Driving Costs 2025 puts average operating costs for a new car at$11,577 per year, or $965 per month at 15,000 annual miles. This covers fuel,insurance, depreciation, maintenance, and registration but not the full loan principal payment. Adding a typical new car loan of $735 per month brings the true all-in cost to $1,500 to $1,600 per month for financed vehicles.
This guide answers how much does it cost to run a car per month with real 2026 figures, compares costs by vehicle type, and shows what used car owners actually pay.
Use our cost per mile calculator to enter your own figures and calculate your personal monthly vehicle cost.
Reviewed by the FuelConsumptionCalc Editorial Team.
Data verified June 2026.Sources: AAA Your Driving Costs 2025, Experian Q1 2026 Auto Finance Report, Repair Pal Car Maintenance Data 2026, ConsumerAffairs June 2026, NerdWallet June 2026, MoneyGeek May 2026, Consumer Reports June 2026.
Last Updated: July 2026.
Quick Answer: The average new car costs $965 per month in operating costs in Adding financing brings the all-in total to around $1,500 per month. A used car 3 to 5 years old runs $600 to $850 per month all-in. Depreciation is the largest single cost at $361 per month, not the loan payment.
Monthly Cost Quick Comparison
| Vehicle Type | Monthly Operating Cost | All-In With Loan |
| Used compact car | $400 to $500 | $600 to $750 |
| New sedan | $800 to $1,000 | $1,200 to $1,400 |
| New compact SUV | $950 to $1,100 | $1,350 to $1,600 |
| New full-size SUV | $1,100 to $1,350 | $1,500 to $1,850 |
| New pickup truck | $1,000 to $1,250 | $1,400 to $1,75 |
Operating costs = fuel, insurance, maintenance, depreciation, registration. All-in adds the average monthly loan payment for that vehicle class.
Average Monthly Car Costs in 2026
Knowing how much does it cost to run a car per month requires looking beyond the loan payment. The true monthly cost includes seven separate expense categories. AAA analysed vehicle ownership expenses for 2025 and found that the average new car has operating expenses of $965 per month at 15,000 annual miles. This figure covers fuel at 13 cents per mile, insurance, depreciation, maintenance, and registration. It does not include the full loan principal repayment.
Car ownership costs grew 9 percent in the 12 months ending May 2026, according to NerdWallet, driven by higher fuel and insurance prices.
| Cost Category | Monthly Cost (New Car) | % of Operating Total |
| Depreciation | $361 | 37% |
| Insurance | $204 | 21% |
| Fuel (13 cents/mile) | $163 | 17% |
| Maintenance and tyres | $117 | 12% |
| Loan interest charges | $94 | 10% |
| Registration and fees | $26 | 3% |
| TOTAL OPERATING | $965 | 100% |
| Full loan payment* | $735 | additional |
| TRUE ALL-IN TOTAL | ~$1,565 | with financing |
Average new car loan payment per Experian Q1 2026. Loan principal is not included in AAA operating cost figure. Full all-in cost adds loan payment.
Fixed Costs Breakdown
Fixed costs stay the same every month regardless of how many miles you drive.They make up 65 to 70 percent of total monthly car costs. You pay them whether the car sits in the driveway or covers 2,000 miles.
Depreciation
Depreciation is the single largest cost in car ownership at $361 per month on average for a new vehicle. A new car loses 15 to 25 percent of its value in the first year alone. This cost never appears on a monthly statement, which is why most drivers consistently underestimate their true monthly spend.
Insurance
Insurance averages $204 per month for a new car in 2026. Used vehicles run $150 to $180 per month. Rates vary by state, vehicle type, age, and driving
record. Comparing providers at every renewal saves $200 to $600 per year.
Loan Payment and Registration
The average new car loan payment reached $735 per month in Q1 2026 per Experian. Used car payments averaged $537 per month. Registration and fees
average $26 per month nationally, ranging from under $5 per month in some states to over $40 per month in others.
Variable Costs Breakdown
Variable costs rise and fall with how much you drive. They make up 30 to 35 percent of total monthly car costs for the average driver.
Fuel
At $4.07 per gallon and 15,000 annual miles, fuel costs $163 per month at the AAA baseline of 13 cents per mile. A compact car at 35 MPG spends $117 per month. A full-size truck at 18 MPG spends $226 per month. Use our fuel cost calculator to calculate your exact monthly fuel spend based on your MPG and local price. Track it month by month with our monthly fuel cost calculator.
Maintenance and Tyres
RepairPal data shows annual maintenance costs of $400 to $1,200 per year, or $33 to $100 per month. AAA puts the combined maintenance, repair, and tyre cost at $117 per month averaged over vehicle life. Vehicles over 100,000 miles average $150 to $200 per month. Sticking to scheduled maintenance prevents the large unexpected repair bills that spike monthly costs unpredictably.
Monthly Cost by Vehicle Type
Vehicle type is the largest single driver of monthly running costs. The difference between a compact car and a full-size truck exceeds $400 per month in operating costs alone.
| Vehicle Type | Fuel/Month | Insurance | Depreciation | Operating Total |
| Small sedan | $100-$130 | $150-$180 | $230-$280 | $700-$850 |
| Compact SUV | $130-$160 | $170-$200 | $280-$340 | $850-$1,000 |
| Full-size SUV | $180-$220 | $200-$240 | $380-$480 | $1,100-$1,350 |
| Pickup truck | $180-$240 | $180-$220 | $320-$420 | $1,000-$1,250 |
| Electric vehicle | $40-$70 | $220-$280 | $360-$480 | $900-$1,100 |
Based on new vehicles at 15,000 annual miles. EV fuel assumes home charging. For a full EV vs petrol comparison, use our EV vs petrol calculator.
New Car vs Used Car Costs
A 3 to 5 year old used vehicle cuts total monthly costs by 30 to 40 percent.The saving comes from three sources: a lower loan payment, slower depreciation,and lower insurance. Maintenance costs run higher on used vehicles, but the net monthly saving is substantial.
| Cost Category | New Car (Monthly) | Used Car 3-5yr | Monthly Saving |
| Loan payment | $735 | $537 | $198 |
| Insurance | $204 | $165 | $39 |
| Depreciation | $361 | $180 | $181 |
| Maintenance | $117 | $150 | -$33 |
| Fuel (same MPG) | $163 | $163 | $0 |
| Registration | $26 | $20 | $6 |
| TOTAL ALL-IN | $1,606 | $1,215 | $391 |
Note: The $965 AAA figure covers operating costs only (fuel, insurance, depreciation, maintenance, registration). Adding the full $735 loan payment brings the new car all-in total to $1,606. The used car figure adds its $537
loan payment to reach $1,215.
A used car saves roughly $391 per month compared to a new equivalent at 2026 prices. Over 5 years that is $23,460 saved. Use our MPG calculator to compare fuel economy between vehicles you are considering.
How to Reduce Monthly Car Costs
These four actions target the largest cost categories and deliver the biggest monthly savings. Most require a one-time decision rather than ongoing effort.
Choose a Used Vehicle
The biggest monthly saving comes from vehicle age. Buying a 3 to 4 year old used car rather than new saves $181 per month in depreciation alone and $198 in loan payments. Total monthly saving runs $350 to $400.
Compare Insurance Every Year
Insurance is the second largest fixed cost. Comparing providers at renewal saves $200 to $600 per year for most drivers. Raising the deductible from $500 to $1,000 cuts premiums 10 to 20 percent. Safe driver telematics programs save 10 to 30 percent for eligible drivers.
Reduce Fuel Cost
Fuel is the largest variable cost and the most controllable. Correct tyre pressure, smooth driving, and steady motorway speeds below 65 mph each save 5 to 15 percent in fuel spend. Use our trip
fuel calculator to estimate fuel cost before long journeys and plan fill-up stops away from expensive motorway stations.
Service Preventively
Preventive maintenance costs far less than reactive repair. An oil change at $50 prevents engine damage costing $3,000 to $8,000. Tyre rotation at $40 extends tyre life by 20 to 30 percent, saving $100 to $200 on early replacement. Address warning lights within a week to avoid compounding damage.
Track your full monthly vehicle running cost using our cost per mile calculator which includes fuel,insurance, maintenance, and depreciation in one calculation.
Methodology
Monthly cost figures come from AAA Your Driving Costs 2025, the leading annual vehicle cost study in the US covering new vehicles at 15,000 annual miles.Fuel cost uses $4.07 per gallon from Consumer Reports June 2026. Loan payment averages from Experian State of the Automotive Finance Market Q1 2026.
Maintenance data from RepairPal and Consumer Affairs, July 2026. Insurance
Averages from NerdWallet and MoneyGeek, July 2026. The $965 AAA figure covers operating costs only and excludes full loan principal repayment. All-in totals add the average monthly loan payment to operating costs. Used car estimates assume a 3- to 5-year-old vehicle. Results vary by vehicle type, state, driver profile, and mileage.
