Posts Tagged ‘Your Driving Costs’

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.”

 

Nancy WhiteWASHINGTON, D.C. (Dec. 4, 2013)

Statement by Kathleen Bower, AAA Vice President of Public Affairs

“AAA supports Rep. Earl Blumenauer’s efforts to provide necessary investment to fund our nation’s roads and bridges.  Though it would be easier to simply kick the can down the road, today’s proposed legislation takes a necessary step forward in fostering debate on an important issue that many policymakers have been reluctant to address.

“AAA members rely each and every day on the roads, bridges and transit systems that are funded, in part, by the gas taxes that they pay to the federal government.   And when these systems deteriorate – as they have for years now – it not only frustrates our members, but it imposes real costs in terms of safety, time and maintenance.

“The country desperately needs additional funding for infrastructure and for the moment there is no better means than the fuel tax.  The proposed increase is well over due and in line with what most experts suggest would be appropriate.

“Our transportation system is critical to our economy, and Americans value their mobility.  There are no easy answers, and no way to avoid the need for investment.  Asking Americans to pay more is not easy, but it’s the right thing to do for the country.”

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

 

 

 

 

 

 

AAA issued the following letter to the Congressional panel on 21st Century Freight Transportation urging that its members reject any proposal to increase truck size and weight standards due to significant safety concerns:

 

The Honorable John J. Duncan
Chair
Panel on 21st Century Freight Transportation
Committee on Transportation and Infrastructure
U.S. House of Representatives
Washington, DC 20515

The Honorable Jerrold Nadler
Ranking Member
Panel on 21st Century Freight Transportation
Committee on Transportation and Infrastructure
U.S. House of Representatives
Washington, DC 20515

Dear Chairman Duncan and Ranking Member Nadler:

AAA appreciates the commitment of the Panel on 21st Century Freight Transportation to look for solutions to help facilitate efficient freight movement on the nation’s multi-modal transportation infrastructure network.   As you prepare to finalize the panel’s recommendations, I would like to share AAA’s concern with one of the recommendations discussed at the October 1 hearing on the subject.

During the hearing, one of the industry groups recommended endorsement of the Safe and Efficient Transportation Act (SETA), H.R. 612, which would allow states to permit 97,000 pound trucks on its roadways including the Interstates.  AAA strongly urges the panel to forego any action  to raise the federal truck size and weight limits until federal research authorized in “Moving Ahead for Progress in the 21st Century” (MAP-21) is completed.

As you know, MAP-21 included a focus on establishing a stronger national freight program.  It included a two-year research project to assess the implications  of allowing longer, heavier trucks on the nation’s roads and bridges and a safety analysis of different configurations, including the 97,000 lb. GVWR, six-axle truck configuration.  This USDOT research must be completed before any recommendations are considered relative to changing current federal regulations.

A look at the most recent NHTSA data shows fatalities in crashes involving large trucks increased nine percent, from 3,380 in 2009 to 3,675 in 2010.  Of the fatalities in crashes involving large trucks during 2010, 76 percent were occupants of other vehicles.  Based on these data alone, we believe that any proposals to increase truck size and weight are premature and misguided until the research is concluded and reviewed.

Until key questions about the impact of bigger and heavier trucks on infrastructure and on highway safety are addressed, AAA will continue to oppose any change in current truck size or weight limits.

CC:  Panel on 21st Century Freight Transportation members

The Honorable Gary Miller The Honorable Corrine Brown
The Honorable Rick Crawford The Honorable Daniel Lipinski
The Honorable Richard Hanna The Honorable Albio Sires
The Honorable Daniel Webster The Honorable Janice Hahn
The Honorable Markwayne Mullin

Michael GreenCongress and Administration Responsible for Letting the Highway System Deteriorate

Orlando, FL, (Oct. 22, 2013) AAA President and CEO Bob Darbelnet today addressed the nation’s transportation funding crisis during a board meeting of the American Trucking Associations (ATA). The following are selected remarks from his speech:

“By this time next year, the Highway Trust Fund will have insufficient funds to meet its obligations, which will cause further deterioration of nation’s roads and bridges. Regrettably, this looming crisis has not translated into Congressional action, nor a public outcry.

“There are a few leaders in Washington who stress the importance of infrastructure to our economy.  While we might give them high marks for effort, they are not getting a passing grade for results.

“Both Congress and the Administration are culpable of gross negligence by letting one of our nation’s greatest assets deteriorate. It is a shameful demonstration of bad government.

“Politicians have a choice – they can govern through leadership or they can govern through crisis. Our lawmakers seem content to wait for a crisis to take the action that we all know will eventually be unavoidable. Leadership involves taking risk, and the courage to do so seems in short supply.

“No one questions the need to invest far more in transportation, but there is no political will to provide the required funding.  The reality is that a dime increase in the gas tax, properly spent where actually needed, is unlikely to derail the re-election of an otherwise meritorious politician.

“But the fault isn’t just with lawmakers – there is plenty of blame to go around. The truth is we have done a poor job of mobilizing support for what we know needs to happen. I believe we need to do five things to address this issue:

  1. Establish a concerted coalition effort to construct a plan of action that focuses on not just what is needed, but what is possible.
  2. Agree on acceptable transportation funding mechanisms and articulate clear guidelines to ensure proper use of the funds.
  3. Educate voters on why the increase in funding is required. Public support is likely the most important ingredient for building stronger backbones in Congress.
  4. Broaden our focus to include both federal and state opportunities to fund transportation.
  5. Make sure we properly resource the effort. We need to ensure that we don’t set forth on this endeavor without fully understanding – and committing – the resources that are required.

“Without a safe and efficient transportation network, goods can’t be delivered cost effectively, family trips will take longer, and gridlock will continue to stifle the nation’s long-term economic recovery. Thank you for having me here today and I look forward to continuing to work together on these important issues.”

Ginnie PritchettAs summer travel revs up, nation’s largest motor club cautions drivers of dangers on the open road if not properly prepared

ORLANDO, Fla., (May 29, 2013) – More than 31 million Americans kicked off the summer travel season with a road trip Memorial Day weekend, but plans were damped for approximately a quarter of a million motorists that AAA  needed to rescue at the roadside.  AAA expects between the major summer holidays of Memorial Day and Labor Day to aid over eight million motorists, and cautions drivers that auto maintenance is key to avoiding summertime travel breakdowns.

“The best way to avoid a breakdown during a trip is to ensure your car is properly maintained before hitting the road,” said John Nielsen, AAA’s Managing Director of Automotive Engineering and Repair. “But unexpected breakdowns can still occur so for your safety and security, and that of your passengers, be sure to have access to a roadside assistance provider like AAA.”

AAA recommends that motorists perform the following maintenance tasks before hitting the road. An acronym of S.A.F.E.T.R.I.P. is used to help motorists remember these essential tasks.

Service your Battery

AAA will assist nearly 1.6 million motorists with dead batteries during the summer driving season—replacing more than 500,000 batteries at the roadside. Summer heat breaks down car batteries internally and accelerates the rate of corrosion on the terminals. Both conditions can lead to insufficient electrical power being available and leave a motorist stranded without warning. Depending on local climate and vehicle usage patterns, most car batteries have a three to five year service life. If your battery is more than three years old, have it tested by a professional technician to help avoid unexpected trouble.

Air Conditioning Check
A vehicle without air conditioning can be a hot and uncomfortable environment for travelers during the summer months. Automotive air conditioning systems do not require routine maintenance, but a system that is operating marginally is more likely to fail in hot weather. If you have noticed a decrease in cooling capability, have your air conditioning system examined by a qualified technician before setting out on a trip.

Fluids for Windshield Washer/Wipers

Rain, insects, grime and other debris on a windshield will compromise the driver’s vision and safety. The life of a rubber wiper insert is typically six to 12 months depending on its exposure to heat, dirt, sunlight and rain. If your wipers leave streaks or cannot clear the windshield in one swipe they should be replaced. Also, check the windshield washer fluid level and top it off with a solution formulated to aid in the removal of insects and other debris. Be sure to test the washer spray nozzles for proper operation and aim before leaving on a trip.

Emergency Roadside Kit

While preventative measures go a long way toward minimizing breakdowns, unexpected vehicle problems can still arise. AAA encourages motorists to update their emergency roadside kit every season. The kit should include a mobile phone and car charger; a flashlight with extra batteries; a first-aid kit; drinking water; extra snacks/food for your travelers and any pets; battery booster cables; and emergency flares or reflectors.

Tire Inflation and Condition

“Roughly one million drivers will call AAA for help with a flat tire during the summer travel season, and many of those problems could be avoided with a quick tire inspection,” said Nielsen. “Begin every tire inspection with a pressure check when the tires are cold and the car has not been driven recently.” Use a quality gauge to make sure all five tires are inflated to the pressure recommended by the vehicle manufacturer—this can be found in the owner’s manual or on a sticker usually attached to the driver’s door jamb, or sometimes inside the gas cap door. Properly inflated tires increase safety and fuel economy, which will reduce fuel costs during a trip. Finally, inspect the tread depth and overall condition of the tires. Worn tires in need of replacement are much more likely to suffer punctures and other problems.

Regular Maintenance

This summer, AAA will remedy over half of motorists’ car problems at the roadside and get them back on the go. However, an estimated 3.5 million drivers will suffer more significant troubles and need towing to a place of repair. If it’s almost time for scheduled maintenance, have your car serviced before a trip. If it has been some time since the vehicle last saw the inside of a repair shop, consider having it thoroughly inspected by a qualified technician who can identify potential problems before they put a damper on any travel plans.

Inspect under the Hood: Belts, Hoses and Fluids

Replace accessory drive belts that are cracked, glazed or frayed, as well as coolant hoses that are visibly worn, brittle, bulging or excessively soft. Check for leaks around hose clamps and at the radiator and water pump. Check the engine coolant level, along with that of other important under hood fluids such as the engine oil, brake fluid, transmission fluid and power steering fluid. A low fluid level could indicate a leak or other problem that should be checked out by a professional technician.

Prepare and Plan Ahead
Part of the fun of taking a road trip is planning it. Chart out driving routes and, when possible, reserve your accommodations in advance. Be prepared for busy roads during the popular travel times   and, if possible, consider leaving earlier or later to avoid traffic. For increased safety, assign a passenger as the designated texter/caller to avoid distracted driving. AAA recommends drivers allow plenty of time to reach their destinations, and stop in a safe location every 100 miles or two hours to avoid drowsy or fatigued driving.

If any part of the road trip vehicle preparation process seems overwhelming, AAA can help consumers identify quality auto repair shops to assist in the maintenance and repair of their vehicles. AAA offers the Approved Auto Repair program as a free public service. Repair facilities approved by AAA meet and maintain stringent standards for training, equipment, cleanliness and customer service. Motorists can look for the Approved Auto Repair sign at local shops, or search for a nearby AAA-approved shops online at AAA.com/Repair.

As North America’s largest motoring and leisure travel organization, AAA provides more than 53 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 Contact TileAAA Says Policymakers Failing to Connect with Motorists’ Practical Concerns

WASHINGTON, D.C., (April 25, 2013) – Sixty-two percent of U.S. motorists believe the federal government should invest more money to improve roadways, according to a recent public opinion poll conducted by AAA. The vast majority of drivers (81 percent) also believe the federal government should do more to improve the condition of roads and bridges.

“Most Americans recognize the need for increased transportation funding because they drive over potholes and bumpy roads every day,” said Robert L. Darbelnet, President and CEO of AAA. “Unfortunately, the main concerns voiced by motorists about transportation and driving differ markedly from the points generally expressed by policymakers to promote funding legislation.”

When asked for their concerns regarding transportation and driving their cars, issues identified by drivers included the reliability and safety of their car (34 percent) and the direct financial cost of driving (19 percent). Other major concerns included the behavior of other drivers (15 percent), safety/road accidents (15 percent) and the gas mileage/fuel efficiency of their vehicle (15 percent). According to AAA’s recently released ‘Your Driving Costs’ report, the average cost to own and operate a car this year rose 1.96 percent to 60.8 cents per mile, or $9,122 per year, based upon 15,000 miles of annual driving.

“Policymakers and transportation advocates are failing to connect with the public on the practical concerns that matter most to motorists,” continued Darbelnet. “Motorists want to hear about how their elected officials can improve their daily commute by repairing the pothole down the street or the bumpy road around the corner.”

Nearly seven out of ten (68 percent) motorists believe the federal government should make “reducing congestion on the roads” a top transportation priority. Traffic jams and crowded roads waste billions of dollars a year in time and fuel, and causes significant frustration for many drivers. Federal transportation funding can support increased capacity and expanded roadways.

Motorists who feel that the federal government should increase taxes or fees to improve roadways support a number of options for increasing transportation funding, including:

  • Replacing the per-gallon gas tax with a national gasoline sales tax (55 percent)
  • Creating a new national sales tax dedicated to transportation (47 percent)
  • Expanding the use of tolls to Interstate highways where tolls are not currently collected (47 percent)
  • Creating a carbon tax on fossil fuels (45 percent)
  • Replacing the federal gas tax with a per-miles-driven fee (37 percent)
  • Creating an energy tax on all sources of energy (35 percent)
  • Increasing the federal per-gallon gas tax (27 percent)

“The public seems very willing to examine innovative transportation methods to improve road quality,” continued Darbelnet. “AAA is dedicated to examining all funding options and educating policymakers on the need to fully fund improvements for America’s roads and bridges.”

Motorists overwhelmingly (83 percent) remain concerned about wasteful government spending on transportation. AAA has worked with Congress to implement reforms, such as eliminating earmarks, streamlining bureaucratic oversight and accelerating project development as part of Map 21, the recently passed federal transportation authorization law. AAA will continue to push for improved reforms to reduce wasteful spending as Congress debates transportation funding.

This report presents the findings of an omnibus telephone survey (654 landline and 354 cell phone) consisting of 1,008 adults (503 men and 508 women) living in the continental United States. A screener question identified 817 current motorists who were asked the remainder of the question list. The study has a 95 percent margin of error of ±4.0 percent.

As North America’s largest motoring and leisure travel organization, AAA provides more than 53 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.

Ginnie PritchettIncrease in maintenance, insurance and fuel drive up average cost for sedans to $9,122 yearly, 60.8 cents per mile

ORLANDO, Fla., (April 16, 2013) – AAA released the results of its annual ‘Your Driving Costs’ study today, revealing a 1.96 percent increase in the cost to own and operate a sedan in the U.S. The average cost rose 1.17 cents to 60.8 cents per mile, or $9,122 per year, based upon 15,000 miles of annual driving.

“Many factors go into the cost calculation of owning and operating a vehicle,” said John Nielsen, AAA Director of Automotive Engineering and Repair. “This year, changes in maintenance, fuel and insurance costs resulted in the increase to just over 60 cents a mile.”

The findings of the 2013 ‘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

61.0 cents

75.0 cents

60.8 cents

77.3 cents

65.3 cents

Cost Per Year

$6,967

$9,151

$11,248

$9,122

$11,599

$9,795

Additional Resources

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 in the additional resources bar.

Nielsen continued, “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.

Maintenance Costs Up 11.26 Percent

The costs associated with maintaining a vehicle had the single largest percentage increase from 2012 to 2013, growing by 11.26 percent to 4.97 cents 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.  Driving the increase in maintenance costs is significant increases in labor and part costs for some models and a major increase in the price of extended warranty policies due to high loss ratios by underwriters.

Fuel Costs Up 1.93 Percent

Gasoline prices were relatively stable compared to the prior year, leading to a minimal fuel cost increase of 1.93 percent to 14.45 cents per mile on average for sedan owners. The average cost of regular grade fuel (used by most of the study vehicles) actually rose 3.84 percent, from $3.357 to $3.486 per gallon. However, several vehicles in the ‘Your Driving Costs’ study had small improvements in their fuel economy ratings which partially offset the fuel cost increase. Fuel costs in the 2013 study were calculated using the national average price for regular, unleaded gasoline during the fourth quarter of 2012.

Tire Costs Remain Unchanged
The cost of tires did not change from 2012 to 2013, remaining at one cent per mile on average for sedan owners. The stable price is attributed to a leveling off of past increased costs for raw materials, energy and transportation from factories to distributors across the country.

Insurance Costs Up 2.76 Percent

Average insurance costs for sedans rose 2.76 percent (or $28) to $1029 annually. 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. Quotes from five AAA clubs and insurance companies representing seven states showed across-the-board modest increases for all sedan sizes, with large cars having less of an increase than small- and medium-size sedans.

Depreciation Costs Rise .78 Percent

After seeing a drop in 2012, depreciation costs were up slightly in 2013, increasing .78 percent to $3,571 a year. This change may be a consequence of recovering new vehicle sales, resulting in more used cars available in the marketplace and thus the softening of the resale value of clean older models.

63rd 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 53 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.

Increases in gas and tires drive up average costs for sedans to $8,946 yearly, 59.6 cents per mile; SUV costs up to $11,360 yearly, 75.7 cents per mile

ORLANDO,Fla., (April 27, 2012) – AAA released the results of its annual ‘Your Driving Costs’ study today revealing a 1.9 percent rise in the yearly costs to own and operate a sedan in the U.S. The average costs rose 1.1 cents per mile to 59.6 cents per mile, or $8,946 per year, based upon 15,000 miles of annual driving.

“The average driving cost for 2012 is up due to relatively large increases in fuel and tire costs, and more moderate increases in other areas,” said John Nielsen, AAA director of Automotive Engineering and Repair. “Those increases were offset by a decrease in depreciation resulting in an overall increase of 1.9 percent.”

The findings of the 2012 ‘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

44.9 cents

58.5 cents

75.5 cents

59.6 cents

75.7 cents

63.4 cents

Cost Per Year

$6,735

$8,780

$11,324

$8,946

$11,360

$9,504

 

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 here.

Additional Resources

“Some driving costs fluctuate at different times during the year, such as what we have experienced with fuel prices since the middle of February,” explained Nielsen. “However, AAA’s use of a consistent methodology for its study allows an accurate comparison of driving costs from year to year, and the figures can reliably be used to compare different categories of vehicles.”

Nielsen continued, “AAA understands that high fuel prices are a real concern for consumers, and those in the market for a new vehicle may want to be cautious and determine projected operational costs based on varying levels of fuels costs. 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 Up 14.8 Percent

The cost of fuel had the largest percentage increase from 2011 to 2012, rising 14.8 percent to 14.2 cents per mile on average for sedan owners. The average cost of regular grade fuel (used by most of the study vehicles) rose 16.6 percent, from $2.880 to $3.357 per gallon. Several vehicles included in the ‘Your Driving Costs’ study had increases in fuel economy, resulting in the overall average fuel cost increase being slightly less. The fuel costs in the 2012 study were calculated using the national average price for regular, unleaded gasoline during the fourth quarter of 2011.

Tire Costs Up 4.2 Percent
The cost of tires ranks second highest among the factors that rose from 2011 to 2012, increasing by 4.2 percent to one cent per mile on average for sedan owners. The rise in cost can be attributed to higher costs for natural rubber, and the increased cost of oil used in tire production and transportation from factory to distributors across the country. A collateral factor is a trend for manufactures to equip new cars with premium-grade tires rather than mid-grade tires.

Depreciation Drops 4.9 Percent

Depreciation costs were up slightly in 2011, but for 2012 the trend has reversed with depreciation falling across the board by nearly five percent.This change may be a consequence of reduced new car sales over the past few years, which has resulted in a relative shortage of good used cars on the market, driving up their value. This is good news for those in the resale market as their vehicles will retain a greater portion of their purchase cost.

Maintenance Costs Up 0.7 Percent

Maintenance costs are slightly higher in the 2012 ‘Your Driving Costs’ study with an increase of 0.7 percent to 4.47 cents per mile on average for sedans. Factors contributing to the increase include higher prices for oil and more manufacturers now requiring synthetic or synthetic-blend motor oils. Although the use of these oils often comes with extended service intervals, the higher cost of the oil combined with increased maintenance operations at each service (which adds to the time required) can combine to increase overall vehicle maintenance costs.

Insurance Costs Up 3.4 Percent

Average insurance costs for sedans rose 3.4 percent (or $33) to $1001 yearly. 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. For 2012, this group saw a small increase that offset a decrease experienced in 2011. Quotes from five AAA clubs and insurance companies representing seven states showed across the board increases for all sedan sizes, with large cars having the biggest increase.

62nd 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.

Driving Costs are also affected by how well your vehicle runs. Performing regular maintenance not only ensures fuel-efficient operation but can help prevent costly vehicle repairs that can add to your total ownership cost. For more information on ways to keep your vehicle in top condition read the owner’s manual and visit AAA.com for vehicle care information, automated maintenance reminders and repair facility locator tools.

The ‘Your Driving Costs’ study analyzes the cost to own and operate a vehicle in the U.S. Variable operating costs considered in the study include fuel, maintenance and tires. Fuel costs are based on $3.357 per gallon (average price of gas for October 2011-December 2011/AAA Fuel Gauge Report) and Environmental Protection Agency fuel-economy ratings weighted 60 percent city, 40 percent highway driving. Fixed ownership costs factored into the results include insurance, license and registration fees, taxes, depreciation and finance charges. These ownership costs are assumed to be on a purchase of a new vehicle, depreciated over five years. Finance charges are based on five year loan at six percent interest with a 10 percent down payment. Your actual operating costs may vary. Refer to page three of AAA’s 2012 ‘Your Driving Costs’ brochure for a list of vehicles and assumptions used in the study.

To conduct its study, AAA’s auto buying and repair experts compiled detailed driving costs for small, medium, and large sedans. Driving costs in each category are based on the average costs for five top-selling models selected by AAA. By size category, they are:

  • Small Sedan – Chevrolet Cruze, Ford Focus, Honda Civic, Nissan Sentra and Toyota Corolla.
  • Medium Sedan – Chevrolet Impala, Ford Fusion, Honda Accord, Nissan Altima and Toyota Camry.
  • Large Sedan – Buick Lucerne, Chrysler 300, Ford Taurus, Nissan Maxima and Toyota Avalon.

Though not part of the AAA composite average, SUV and minivan information is also included in ‘Your Driving Costs’ to help buyers estimate operating costs for these types of vehicles. Selected models include:

  • SUVs – Chevrolet Traverse, Ford Explorer, Jeep Grand Cherokee, Nissan Pathfinder and Toyota 4Runner.
  • Minivans – Dodge Grand Caravan, Kia Sedona, Honda Odyssey, Nissan Quest and Toyota Sienna.

As North America’s largest motoring and leisure travel organization, AAA provides more than 53 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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