Posts Tagged ‘cost’

JulieHallStrong economy and low gas prices drive 4.7 percent increase in holiday travel over 2014

ORLANDO, Fla., (May 8, 2015) – AAA Travel projects 37.2 million Americans will journey 50 miles or more from home during the Memorial Day holiday weekend, a 4.7 percent increase from the 35.5 million people who traveled last year and the highest travel volume for the holiday in 10 years. Kicking off the summer driving season, 33 million travelers will be driving to their destinations. The Memorial Day holiday travel period is defined as Thursday, May 21 to Monday, May 25.

Highlights from 2015 Memorial Day Travel Forecast:

  • The 2015 Memorial Day forecast is expected to mark the highest travel volume for the holiday in 10 years, since 2005.
  • Most drivers will likely pay the lowest Memorial Day gas prices in at least five years. Today’s national average price of gas is $2.66, $1.00 less than the average price on Memorial Day last year.
  • The 4.7 percent increase over Memorial Day 2014 is the highest forecast growth rate for any of the holidays tracked by AAA since Independence Day 2012.
  • More than 88 percent of travelers (33 million) will travel by automobile, an increase of 5.3 percent over last Memorial Day.
  • Holiday air travel is expected to increase 2.5 percent to 2.6 million leisure travelers.
  • Travel by other modes of transportation including cruises, trains and buses, is expected to decrease 3.6 percent this Memorial Day, to 1.64 million.
  • Travelers will encounter higher lodging costs this year, while airfares are down slightly compared to Memorial Day 2014.

Additional Resources

“Following a harsh winter, many Americans are trading in their snow boots for flip flops and making plans to start the season with a vacation getaway,” said Marshall L. Doney, AAA President. “AAA is expecting more Memorial Day travelers this year than any time in the past 10 years as confident consumers come out of hibernation ready to explore national parks, beach destinations and America’s great cities.”

A number of economic factors are contributing to the large increase in holiday travelers this year. “A strong employment market and low gas prices have driven consumer optimism to new highs and boosted Americans’ disposable income. This is welcome news for the travel industry,” continued Doney.

Impact of gasoline prices

Travelers continue to benefit from substantially lower gas prices compared to recent years. Today’s national average price is $2.66, $1.00 less than the average price for Memorial Day 2014. AAA predicts most U.S. travelers will pay the cheapest Memorial Day gas prices in at least five years.

Tips for drivers

More than 88 percent (33 million) of holiday travelers will drive to their destination, a 5.3 percent increase from 2014. AAA expects to rescue nearly 350,000 motorists at the roadside this Memorial Day weekend, with the primary reasons being dead batteries, flat tires and lockouts. AAA recommends motorists inspect their vehicle and check battery and tire condition before heading out on a holiday getaway. Members can download the AAA mobile app (AAA.com/mobile), visit AAA.com or call 1-800-AAA-HELP to request roadside assistance in the event of a breakdown.

Hotel rates increase, airfares fall slightly

According to AAA’s Leisure Travel Index, the average nightly stay in a Two Diamond hotel is 16 percent higher this year at $144, while Three Diamond hotels will cost seven percent more, averaging $182. Average airfares for the top 40 domestic flight routes are two percent cheaper this year, falling to $222.

Travel planning resources

AAA’s digital tools for travel planning on the go include the free AAA Mobile app for iPhone, iPad and Android. Travelers can use the app to map a route, find current gas prices and discounts, book a hotel and access AAA roadside assistance. Travelers can learn more at AAA.com/mobile.

On AAA.com, travelers can find more than 58,000 AAA Approved and Diamond Rated hotels and restaurants using the TripTik Travel Planner or the searchable Travel Guides at AAA.com/Travel. Every AAA Approved establishment offers the assurance of acceptable cleanliness, comfort and hospitality, and ratings of One to Five Diamonds help travelers find the right match for amenities and services.

AAA’s projections are based on economic forecasting and research by IHS Global Insight. The Colorado-based business information provider teamed with AAA in 2009 to jointly analyze travel trends during major holidays. AAA has been reporting on holiday travel trends for more than two decades. The complete AAA/IHS Global Insight 2015 Memorial Day Travel Forecast can be found here.

As North America’s largest motoring and leisure travel organization, AAA provides more than 55 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. For more information about AAA Travel, visit AAA.com/Travel.

Erin SteppLower Gas Prices Help Fuel 2 Percent Decline From 2014

ORLANDO, Fla. (April 28, 2015) – Due to declines in gas prices and finance charges, the annual cost to own and operate a vehicle has fallen to $8,698, a nearly 2 percent drop from last year, according to AAA’s 2015 Your Driving Costs study.  This research examines the cost of fuel, maintenance, tires, insurance, license and registration fees, taxes, depreciation and finance charges associated with driving a typical sedan 15,000 miles annually. In the United States, a driver can expect to spend 58 cents for each mile driven, nearly $725 per month, to cover the fixed and variable costs associated with owning and operating a car in 2015.

Additional Resources

“Fortunately, reduced gasoline and finance costs more than offset rising costs in other areas,” said John Nielsen, AAA’s Managing Director of Automotive Engineering and Repair.  “As a result, car owners can look forward to saving approximately $178 this year.”

Based on 15,000 miles

Small Sedan

Medium Sedan

Large Sedan

Sedan Average

Minivan

SUV (4WD)

Annual Total Cost

$6,729

$8,716

$10,649

$8,698

$9,372

$10,624

Annual Cost Per Mile

$0.449

$0.581

$0.710

$0.580

$0.625

$0.708

 

Fuel: DOWN 13.77 percent to 11.2 cents per mile/$1,681.50 per year (-$268.50).

Compared to last year’s study, the average cost of regular unleaded fuel fell nearly 13 percent to $2.855 per gallon. This decline, coupled with improvements in vehicle fuel economy, resulted in an average 11.21 cents-per-mile fuel cost.  Due in large part to this decrease, the cost of owning and operating a sport utility vehicle is slightly less than that of a large sedan this year.

Finance Charges: DOWN 21.02 percent to $669 per year (-$178).

With rising car sales and stiff competition among dealers, many manufacturers are offering low finance rates to attract buyers.  In 2015, average vehicle finance rates dropped 21 percent, which equates to approximately $15 per month on a typical five-year loan. However, rates vary widely with borrower credit scores.

Depreciation: UP 4.10 percent to $3,654 per year (+144).

The single largest ownership expense, depreciation, rose for 2015 due to increasing new car sales that are causing an influx of used and off-lease vehicles entering the marketplace. This increased supply has resulted in lower values and selling prices for used vehicles, thus driving up depreciation costs.

Insurance: UP 8.99 percent to $1,115 per year (+$92)

Insurance rates vary widely by driver, driving habits, insurance company and geographical area. AAA’s calculations are based on low-risk drivers with excellent driving records. While premium calculations are confidential, this modest increase of $7.67 per month may be due in part to high-cost modern vehicle features such as infotainment systems, advanced safety features and lightweight materials that can be more expensive to repair and, therefore, insure.

Maintenance: UP .99 percent to 5.11 cents per mile/$766.50 per year (+$7.50)

Annual maintenance, including labor time and repair part costs associated with factory-recommended maintenance, was factored into the 2015 survey along with average costs of an extended warranty.  Maintenance costs varied widely by vehicle type but, on average, were up slightly from 5.06 cents to 5.11 cents per mile. A recent survey of AAA-Approved Auto Repair shops found that the majority of drivers are behind schedule in routine maintenance, including oil changes, tire maintenance and battery inspection/testing.

License/Registration/Taxes: UP 3.74 percent to $665 per year (+$24)

Vehicle prices rose modestly in 2014, contributing to an overall increase in state and local tax costs.  Additionally, some states increased fees related to vehicle purchasing, titling, registration and licensing.

Tires: UP 1.03 percent to .98 cents per mile/$147 per year (+$1.50)

Due to the competitive and dynamic nature of the tire market, tire costs in 2015 remain relatively unchanged, rising by just .01 cents per mile.

In addition to calculating the driving costs for sedans, AAA determined annual costs associated with both minivans and sport utility vehicles. Owners of these vehicles will benefit from annual driving costs nearly four percent lower this year, at $9,372 and $10,624 respectively, due to lower gas prices and finance rates.

“When shopping for a vehicle, smaller isn’t always cheaper,” cautioned Nielsen. “A minivan, for example, can carry up to 7 passengers, yet costs $100 less to own and operate each month compared to a large sedan.”

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 2015 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 55 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.

Heather HunterNew study conducted by the AAA Automotive Research Center shows electric vehicle driving range can be nearly 60 percent lower in extreme cold and 33 percent lower in extreme heat.

ORLANDO, Fla., (March 20, 2014) – Electric Vehicles (EVs) are energy efficient and environmentally-friendly with the added benefit of reducing fuel costs for motorists. But, just as motorists need to know how far the gas in their tank will take them, EV drivers need to be aware of how far their vehicle can travel on a single charge. According to new AAA research conducted with the AAA Automotive Research Center in Southern California, electric vehicle range can be reduced by an average of 57 percent based on the temperature outside.

Additional Resources

“Electric motors provide smooth operation, strong acceleration, require less maintenance than internal combustion engines, and for many motorists offer a cost effective option,” said John Nielsen, managing director, AAA Automotive Engineering and Repair. “However, EV drivers need to carefully monitor driving range in hot and cold weather.”

To better understand the impact of climate on electric vehicle batteries, AAA conducted a simulation to measure the driving range of three fully-electric vehicles in cold, moderate and hot weather. Temperature made a big difference in driving range for all three EVs.

Vehicles were tested for city driving to mimic stop-and-go traffic, and to better compare with EPA ratings listed on the window sticker. The average EV battery range in AAA’s test was 105 miles at 75°F, but dropped 57 percent to 43 miles when the temperature was held steady at 20°F. Warm temperatures were less stressful on battery range, but still delivered a lower average of 69 miles per full charge at 95°F.

AAA performed testing between December 2013 and January 2014. Each vehicle completed a driving cycle for moderate, hot and cold climates following standard EPA-DOE test procedures. The vehicles were fully charged and then “driven” on a dynamometer in a climate-controlled room until the battery was fully exhausted.

AAA has initiated several projects including mobile recharging units and EV charging stations to support members who drive electric vehicles. EVs provide owners with many benefits, but every motorist needs to be aware of conditions that can impact vehicle driving range. EV drivers need to plan carefully in hot and cold weather. Mapping tools such as the AAA TripTik® Travel Planner pinpoint charging stations to keep motorists on the go.

Additional information regarding AAA’s electric vehicle testing is available on the AAA NewsRoom.

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.

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