Posts Tagged ‘cost per mile’

AAA Reaction to GM Senate Commerce Hearing

July 17th, 2014 by Kerrie

Heather HunterORLANDO, Fla., (July 17, 2014) – “Today’s Senate Commerce hearing again sheds light on the unacceptable failure of GM executive management to adequately oversee and respond to early warning signals of potential vehicle safety problems. AAA acknowledges GM’s recent steps to transform its corporate culture by implementing new protocols and procedures intended to help prevent similar crises in the future. However, it is clear more must be done to restore public trust in the recall process, repair compromised vehicles and compensate motorists who have been impacted by GM’s failure to protect their safety. This includes a thorough examination of the existing regulatory structure, and putting in place any changes deemed necessary.”

“AAA continues to support efforts by Congress to raise the maximum fine that NHTSA can levy on automakers, along with legislation introduced by Senators Markey and Blumenthal calling for increased transparency in the recall process. These steps should be taken immediately, and Congress should further use its authority to identify additional ways to help ensure that a tragedy such as this is never allowed to occur again.”

SMichael Greentatement by Bob Darbelnet, President and CEO of AAA

(WASHINGTON, July 10, 2014) “Funding for America’s roads and bridges is once again in imminent danger of running out.  Both the House and Senate will act today on short-term plans to prop up the Highway Trust Fund, but it remains unclear whether either proposal will help meet the long-term needs of drivers.

“The only way that a short-term patch of the Highway Trust Fund is acceptable is if it buys Congress a few months to work on finalizing a bipartisan, long-term agreement later this year. Any proposal that allows this issue to be pushed into 2015 would kill the momentum to find a real funding solution. Renewing the debate next year under a new Congress would start us over at square one, making it nearly impossible to secure long-term transportation funding anytime soon.

“It’s time our leaders in Washington stop the hand-wringing and start taking real steps to shore up funding for the roads and bridges that we rely on every day.  Continuing to put off tough decisions about how to fund transportation will risk road safety and compromise our economic vitality.”

WASHINGTON, D.C. (June 10, 2014) – Two-thirds of Americans (68 percent) believe the federal government should invest more than it does now on roads, bridges and mass transit systems, according to a new AAA omnibus survey of 2,013 adults. Only five percent of respondents believe the federal government should spend less on transportation. These results come as AAA urges members of Congress to increase the fuel tax, which will address significant transportation safety and congestion issues nationwide.

Survey Highlights

  • About half of Americans (52 percent) are willing to pay higher fuel taxes per month on average for better roads, bridges and mass transit systems.
  • Nearly three times as many people (51 percent) are more likely to vote for a member of Congress who supports increased federal spending on transportation than would be less likely (19 percent).
  • Approximately two-thirds of Americans (67 percent) agree that taxes on gasoline and diesel consumption are appropriate for transportation funding.
  • More people believe that roads, bridges and transit systems have declined in quality over the previous three years (43 percent) than those who believe the quality has improved (32 percent).

AAA Commentary

“Americans are fed up with record-long commutes, unsafe highways and never-ending potholes caused by political inaction,” said Bob Darbelnet, AAA President and CEO. “Congress must prevent severe maintenance delays during the height of the summer driving season by preventing a Highway Trust Fund bankruptcy in August.”

AAA supports a federal gas tax increase, provided the funds go towards projects that ease congestion and improve safety. The gas tax is the most efficient and fair method available to pay for transportation maintenance and improvements in the near term. An increase in fuel taxes, spent wisely, should help reduce the estimated $324 per year in additional vehicle repairs and operating costs that the average driver currently spends due to poor road conditions.

The Department of Transportation expects the federal Highway Trust Fund will run out of money this summer without Congressional action, which would delay transportation maintenance and improvement projects nationwide.

“Many of us are willing to pay a little more if it means we will have access to better roads, bridges and transit systems,” continued Darbelnet. “It is time for our nation’s leaders to stand with those in Congress who support improving our country’s transportation system.”

The federal Highway Trust Fund is supported by the 18.4 cents per gallon gas tax and 24.4 cents per gallon tax on diesel. Congress has not raised this tax since 1993. Due to inflation and increased fuel economy, the purchasing power of the current tax has been cut nearly in half.

Survey Questions and Results

  1. Do you believe the quality of roads, bridges and mass transit systems you regularly use have significantly improved; improved; neither improved nor declined; declined; or significantly declined in the past three years?
    • Total
      Significantly improved 4%
      Improved 28%
      Neither improved nor declined 23%
      Declined 27%
      Significantly declined 16%
  2. Do you think the federal government should invest more, less or the same as it does now for roads, bridges and mass transit systems?
    • Total
      More 68%
      Less 5%
      The Same 24%
  3. On average, U.S. drivers contribute about eight dollars per month in federal fuel taxes towards the nation’s roads, bridges and mass transit systems. How much more, if any, would you be willing to pay on a monthly basis for roads, bridges and mass transit systems?
    • Total
      Not willing to pay more 41%
      Willing to pay more (net) 52%
      $0.01-$4.99 20%
      $5.00-$9.99 11%
      $10 or more 21%

     

  4. If your Congressional representative were to support increased federal spending for U.S. roads, bridges and mass transit systems, would you be significantly more likely; somewhat more likely; neither more nor less likely; somewhat less likely; or significantly less likely to vote for them in the next election?
    • Total
      Significantly more likely 17%
      Somewhat more likely 34%
      Neither more nor less likely 27%
      Somewhat less likely 9%
      Significantly less likely 10%
  5. Federal funding for roads, bridges and mass transit systems comes primarily from taxes on gasoline and diesel fuel consumption. Do you think this is an appropriate way to raise funds for this transportation investment?
    • Total
      Yes 67%
      No 29%

Methodology

AAA conducted a telephone survey among two national probability samples (landline only and cell phone), consisting of a combined total of 2,013 adults (1,009 men and 1,004 women), 18 years of age and older and living in the continental United States. Interviewing for this survey was conducted with two waves taking place on May 1-4 and May 8-11, 2014. This study has an average statistical error of 2.7 percent at the 95 percent confidence level for all US adult motorists.

As North America’s largest motoring and leisure travel organization, AAA provides more than 54 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers. AAA clubs can be visited on the Internet at AAA.com.

AAA Welcomes Senate Transportation Bill

May 13th, 2014 by admin

Michael GreenWASHINGTON, D.C, (May 13, 2014) – AAA today issued the following statement by its President and CEO Bob Darbelnet regarding the bipartisan transportation bill introduced in the Senate.

“AAA welcomes Senators Boxer, Vitter, Carper and Barrasso’s bipartisan transportation bill that increases transparency of how federal dollars are spent.  We are encouraged to see leaders in Washington addressing the transportation crisis with detailed proposals rather than general fund bailouts.  AAA looks forward to reviewing the details of this bill, and we are pleased it maintains the ban on interstate tolling.

“It is now up to the Senate Finance Committee to consider how Congress will fund this bill.  AAA urges Chairman Wyden and Ranking Member Hatch to keep all options on the table by committing to a vote on an increase in the federal gas tax in addition to the other funding mechanisms that will be considered by the committee.  AAA, like many, recognizes that a federal gas tax increase is the most viable and effective option available, provided the additional funds are thoughtfully invested in transportation improvements that ease congestion and increase safety.”

Heather HunterFueled by a drop in fourth quarter gas prices and increased fuel economy, average cost for sedans decreases 2.7 percent to 59.2 cents per mile

ORLANDO, Fla. (May 9, 2014) – AAA released the results of its annual ‘Your Driving Costs’ study today, revealing a 2.7 percent decrease in the cost to own and operate a sedan in the U.S. The average cost fell 1.64 cents to 59.2 cents per mile, or $8,876 per year, based upon 15,000 miles of annual driving.

Additional Resources

“Despite increases in maintenance and registration fees, American motorists are experiencing an overall decrease in the cost to own and operate a vehicle,” said John Nielsen, AAA Managing Director of Automotive Engineering and Repair. “A large decrease in fuel costs, and lower tire, insurance and depreciation expenses are saving owners more than one and a half cents on every mile they drive.”

The findings of the 2014 ‘Your Driving Costs’ study include:

Based on Driving 15,000 miles annually

Small

Sedan

Medium Sedan

Large Sedan

Sedan Average

SUV 4WD

Minivan

Cost Per Mile

46.4 cents

58.9 cents

72.2 cents

59.2 cents

73.6 cents

65.0 cents

Cost Per Year

$6,957

$8,839

$10,831

$8,876

$11,039

$9,753

In-depth findings of this year’s study, including a breakdown of specific costs by category of vehicle and various annual mileages, are contained in the ‘Your Driving Costs’ brochure which is available at select local AAA branch offices or may be downloaded at the AAA Newsroom.

Nielsen continued, “The true cost of vehicle ownership involves more than the sticker price and what you pay at the pump. Before you make any vehicle purchase, it is important to determine ownership and operational costs and compare them to your current and future financial situation.” To assist consumers in determining their individual driving costs, the AAA ‘Your Driving Costs’ brochure contains a worksheet that can be filled out and personalized for a specific area, driver and vehicle.

Fuel Costs Down more than 10 Percent

Fuel costs had the single largest percentage decrease from 2013 to 2014, declining 10.04 percent to 13 cents per mile. The average cost of regular grade fuel fell 5.96 percent, from $3.486 to $3.278 per gallon. At the same time, vehicle redesigns and improved power train technologies that take into account higher federal Corporate Average Fuel Economy (CAFE) standards has the effect of improving the average fuel economy of sedans used in the study.  Fuel costs in the 2014 study were calculated using the national average price for regular unleaded gasoline during the fourth quarter of 2013.

Maintenance Costs Up 1.81 Percent

This year maintenance costs increased nearly two percent to 5.06 per mile on average for sedan owners. AAA’s estimates are based upon the cost to maintain a vehicle and perform needed repairs for five years and 75,000 miles, including labor expenses, replacement part prices and the purchase of an extended warranty policy.  For 2014, some vehicles had lower costs due to longer service intervals or reduced labor times, while others experienced an increase in labor times and/or part prices that led to a rise in maintenance costs. AAA experts also identified an increasing number of vehicles requiring low-viscosity semi- or full-synthetic motor oils, which cost more than conventional oils but provide better fuel economy, added engine protection and allow for longer oil change intervals.

Tire Costs Decrease Three Percent
After several years of increases due rising costs for raw materials, energy and transportation, tire prices for 2014 have decreased three percent to 0.97 cents per mile. The decrease can be credited to two main factors; some redesigned sedans now come equipped with less expensive tires and some tire prices have declined.

Insurance Costs Decrease 0.58 Percent

In 2014, average insurance costs remain essentially unchanged at an average annual cost of $1,023, compared to $1,029 last year. Insurance rates vary widely by driver and driving record, issuing company and geographical region. AAA insurance cost estimates are based on a low-risk driver with a clean driving record and for 2014 this group saw a negligible premium decrease. Premium quotes, covering seven states across the country and insurance companies from five AAA clubs, showed minor declines for most small and medium sedans, with large cars having small increases.

Depreciation Costs Fall 1.71 Percent

After a small rise in depreciation last year, the tide has turned and depreciation decreased for 2014 to $3,510 per year from $3,571. While the numbers are improved in all three sedan categories, they are particularly strong in the medium-size area where several very desirable redesigned models have been introduced.

64th Year of ‘Your Driving Costs’ Study

AAA has published ‘Your Driving Costs’ since 1950. That year, driving a car 10,000 miles per year cost 9 cents per mile, and gasoline sold for 27 cents per gallon.

The ‘Your Driving Costs’ study employs a proprietary AAA methodology to analyze the cost to own and operate a vehicle in the United States. Variable operating costs considered in the study include fuel, maintenance and repair, and tires. Fixed ownership costs factored into the results include insurance, license and registration fees, taxes, depreciation and finance charges. Ownership costs are calculated based on the purchase of a new vehicle that is driven over five years and 75,000 miles. Your actual operating costs may vary. See AAA’s 2013 ‘Your Driving Costs’ brochure for a list of vehicles and additional information on the underlying criteria used in the study.

As North America’s largest motoring and leisure travel organization, AAA provides more than 54 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers. AAA clubs can be visited on the Internet at AAA.com.

Nancy WhiteStatement by Bob Darbelnet, President and CEO of AAA

“This morning the nation lost a true champion of transportation.  Former Chairman Oberstar worked tirelessly to restore the “trust” to the Highway Trust Fund and his leadership, expertise and character should serve as an example in Congress for years to come.  AAA had the pleasure of awarding Congressman Oberstar with our “Transportation Leaders Award” in 1998 for his efforts to promote a better, safer transportation system, and he epitomized this leadership throughout his 18 terms, whether it was boosting the share of federal dollars used for traffic safety improvements or putting the interests of system users first when it came to innovative transportation finance approaches.  Thank you to the people of Northeast Minnesota for sending such a principled and thoughtful leader to Washington, and thank you to Congressman Oberstar for your years of service to this nation.  You will be sorely missed.”

Nancy White“The legislation sent to Capitol Hill by President Obama and Secretary Foxx yesterday was not only an important step in starting a robust discussion on how we fund the nation’s roads and bridges, but it also works to address the disturbing trend of recall shortcomings that are front of mind for motorists.  This includes recent reports that General Motors was again reluctant to act to recall vehicles with potentially life-threatening defects.  These continued reports of some manufacturers weighing the cost of recall against that of inaction, and choosing the latter, must be addressed.

As Secretary Foxx put well yesterday, fines on automakers need to be ‘more than a rounding error’ to ensure compliance.  AAA believes that increasing potential penalties from their current maximum of $35 million to $300 million would be a step in the right direction.  Similarly, it is appropriate to strengthen the recall process and provide DOT with both the authority and obligation to require manufacturers to quickly remove automobiles from the market when a dangerous defect is discovered. Likewise, rental car companies should participate in the recall of unsafe vehicles AAA  will continue to support swift action to protect the safety of American motorists.”

Michael Green(WASHINGTON, March 4, 2014) “The President’s budget provides essential funds over the next four years for the nation’s transportation system and AAA is encouraged by Secretary Foxx’s pledge that his department will submit a full reauthorization proposal to Congress in the coming months.  However, AAA remains concerned with Washington’s tendency to make short-term fixes that only patch, not solve, the U.S. transportation funding crisis.

“Once again, policymakers are settling on politically palatable revenue generators instead of setting the stage for the transportation program to return a meaningful reauthorization and funding process.  These sorts of “solutions” can only provide funding for limited term bills and assure only that we avert, not solve this crisis.

“AAA continues to believe that the gas tax represents the most viable, responsible and effective mechanism to achieve the goal of sustaining a transportation system that supports a vital U.S. economy, provided the additional funds generated are thoughtfully spent on transportation improvements that ease congestion and increase safety.  AAA urges the President and  Congressional leaders to make choices that serve U.S. interests in the long-term, instead of short-term fixes.”

Michael Green Contact TileAAA Helping to Make Driving Safer, Improve Mobility and Protect Motorists’ Rights

WASHINGTON, D.C. (Feb. 25, 2014) – AAA will prioritize important state advocacy issues this year including transportation funding, distracted driving, teen driver safety, impaired driving and connected cars. These priorities will help make driving safer, improve mobility and protect motorists’ rights.

“This is an important year because many states lack the money needed to build and maintain the roads that millions of us use every day,” said Jennifer Ryan, AAA director of state relations. “The federal government has failed to adequately address this issue, and many state legislatures must find new ways to pay for improvements. Every driver wants improved safety and reduced traffic congestion, and AAA will do everything it can to help states achieve these goals.”

AAA’s state advocacy priorities in 2014 include:

  • Transportation funding – Many states are looking to address transportation funding needs due to federal inaction. Congress has not updated the 18.4 cents per gallon gas tax that funds the Highway Trust Fund in more than 20 years, which means federal transportation funding per mile has been significantly eroded due to inflation and increased fuel efficiency of vehicles. Last year, six states including Maryland, Massachusetts, Pennsylvania, Vermont, Virginia, and Wyoming, passed legislation to adjust their statewide gas taxes to help pay for roads and bridges. No state passed a law increasing the gas tax in the three years prior to 2013.  As many as 28 additional states may debate funding options this year. AAA will provide expertise as policymakers examine ways to pay for critical transportation projects and safety improvements.
  • Distracted driving – AAA will continue to work with state legislatures to reduce distracted driving. AAA launched a national legislative campaign in 2009 to ban texting while driving in all 50 states, and only eight states remain without a law, including Arizona, Mississippi, Missouri, Montana, Oklahoma, South Carolina, South Dakota and Texas. A texting ban bill in New Mexico is awaiting action by the governor.  Distracted driving remains a serious safety concern and is responsible for about 3,000 fatalities and 420,000 injuries per year, according to the National Highway Traffic Safety Administration. Taking your eyes off the road for more than two seconds, such as when texting, can double your risk of being in a crash.
  • Teen driver safety –Car crashes end more teen lives than cancer, homicide and suicide combined. To help improve teen safety, AAA is urging all states to adopt and enforce a comprehensive three-stage graduated driver licensing (GDL) system for teen drivers. While all states have some form of a GDL law, there is room for improvement. Only seven states (Delaware, Indiana, Michigan, New York, North Carolina, Oklahoma and West Virginia) currently have GDL systems that meet AAA’s guidelines for nighttime limits, passenger limits and practice requirements. Safety experts credit GDL laws for much of the 57 percent decline in traffic fatalities for 16- and 17-year-old drivers between 1995 and 2010.
  • Impaired driving – More than 10,000 people die in alcohol-impaired driving crashes per year, which accounts for approximately one-third of the total motor vehicle traffic fatalities in the United States.More needs to be done to reduce crashes involving alcohol. Research has identified the life-saving benefit of ignition interlocks, which are more effective than other methods at reducing repeat offenses among convicted drunk drivers. Only 18 states and four California counties mandate or highly incentivize ignition interlocks for all convicted drunk drivers, and AAA is urging the 32 remaining states to improve safety by requiring ignition interlocks for all offenders.
  • Connected cars – New cars are increasingly equipped with wireless connectivity, enabling them to transmit data outside the vehicle to improve safety and convenience for drivers. These technologies will transform the driving experience, yet also will allow companies to collect large amounts of potentially sensitive personal data. AAA is working to educate state policymakers on the potential ramifications for drivers by promoting consumer rights for car data that ensure transparency, choice and security.

As North America’s largest motoring and leisure travel organization, AAA provides more than 54 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers. AAA clubs can be visited on the Internet at AAA.com.

Michael Green“The President’s proposal for maintaining roads and bridges is well intentioned, but falls short of what is required because it does not provide a sustainable funding solution for the nation’s transportation problems. AAA urges Congress and the Administration to instead focus on options like increasing the gas tax because it is the most effective and fair way to fund transportation in the near term.

Additional Resources

“AAA supports solutions like Representative Blumenauer’s proposal to increase the federal gas tax by fifteen cents per gallon. A gas tax increase would provide the necessary funds to improve our system, while also upholding the long-standing principle that those who use the roads should pay for their upkeep. Increasing the gas tax is deficit-neutral and would provide funding certainty for the program into the future.

“Americans endure frustrating commutes and unsafe road conditions because our political leaders have not demonstrated the political will necessary to fund current, let alone future, transportation needs. It costs real money to maintain thousands of miles of roads and bridges, yet Washington has too often overlooked the needs of drivers.

“Congress and the Administration must work together and put divisions aside. I hope that in the coming weeks our leaders will move quickly and act responsibly on this important issue.”

 

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