Owning a New Car Now Costs Almost $10,000 a Year, According to AAA
Owning a new car right now costs about $10,000 a year due to the chip shortage caused by the pandemic.
Buying
new cars
used to be somewhat affordable, but thanks to the pandemic and the shortages that have come with it, that's no longer the case.
其中的一个
long-term effects
of the chip shortage is that it simply costs a lot of money to own a car.
Here's a look at how owning a car costs almost $10,000 a year, and why that is.
New car depreciation adds a lot of extra costs right now
USA Today
reported that, according to a recent study from AAA, the average cost of owning a brand-new car is now almost $10,000. AAA conducted the study between May 2020 and May 2021, and the researchers looked at the top five best-selling cars in nine segments.
When the researchers crunched the numbers, the average cost of owning a new car was $805.50 a month, or $9,666 a year. The average price of these vehicles was $32,903, which is a $1,502 increase from last year.
The biggest chunk of that $9,666 price tag was depreciation, which represented 40% of ownership costs. Depreciation is normal, and almost every car
depreciates in value
. But, when combined with a higher price tag, depreciation means that owners are losing even more money by buying brand-new.
Fuel, maintenance, and insurance matter a lot too
The second-biggest chunk was gas prices, which saw
a large jump
in 2021. Gas prices represented 17% of ownership costs, but it was followed very closely by maintenance and insurance costs. Maintenance costs represented 15% of the pie chart, while insurance costs represented 14%. Taxes and financing rounded it all out, and they each represented 7% of the chart. The good news is that most of these things can be controlled.
If you're concerned about gas prices, then when it's time to get a new car, it's probably worthwhile to get a fuel-efficient one or an EV. It's also a good idea to choose a reliable car that doesn't need much maintenance. Drivers can as well save a lot of money on their car insurance by shopping around.
Will owning a new car get cheaper after the shortage is over?
Since the single thing that's responsible for most of that ownership cost is depreciation, things are looking good for when the chip shortage ends. Thanks to the chip shortage, there's a shortage of cars, which has allowed dealerships to jack up the price on their inventory.
When somebody buys a brand-new car at those higher prices, the value of their car will depreciate a lot simply because the car costs a lot. As such, when the chip shortage ends and when car prices return to normal, then the losses from depreciation should also return to normal.
在那之前,人们应该avoid shopping for a new car at all costs. A used car may not come with all the brand-new features that the latest models have, but at least they're affordable. For most families, buying an affordable car is more important than buying a car with a slightly bigger touch screen.
Lower your car costs by shopping for car insurance
Since car insurance represents such a big part of ownership costs, it makes sense for owners to shop around for the best deals.
Jerry
is the first-ever car super app, and it can help you save, on average, $887 a year on your car insurance. Jerry will even monitor prices before it's time to renew so that you get the coverage you need without spending too much.
Compare Car Insurance Quotes For Free
Jerry automatically shops for your insurance before every renewal. Members save $872/year.
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