How much does it cost to own a new car in California? It’s thousands above US average
It costs a lot more to own a new car in California than it did last year.
New data from AAA’s annual driving cost survey found that state drivers also on average pay more than car owners nationwide.
Nationally, the average yearly expense of a new car is up to $12,182 per year, or $1,015 per month.
That’s up 12% from last year, or an additional $121 a month.
But in California, the average is now $14,390 a year, or $1,199 a month.
A big reason for the jump in prices nationwide has been supply chain issues, which meant lower inventories. New vehicle prices were up nearly $1,600 last year.
Also contributing to the increase: People tended to buy more oversized, luxurious vehicles, loaded with extra features in production that bump up prices further, AAA said. And interest rates have been going up steadily throughout 2022 and 2023.
In California, costs are also higher partly because of vehicle and fuel supply issues and environment-related charges.
Tuesday, the average price of a gallon of regular gasoline, as measured by AAA, was $5.33, the highest in the country. It was well above the national figure of $3.81.
California’s fuel taxes are among the nation’s highest, and the state has limited ways to get supplies of gasoline. One reason prices got as high as $6.44 a gallon last year involved refinery shutdowns.
During warmer months, California refineries produce gasoline that will help ease pollution. Winter blends don’t have such strict requirements, and are usually less expensive to produce.
A California owner of a standard Toyota Rav4, the nation’s best-selling non-truck vehicle, would find their annual cost broken down as follows, totaling roughly $12,000:
▪ Fuel: $1,011
▪ Maintenance and repair: $1,017
▪ Depreciation: $4,543
▪ Insurance: $2,295
▪ Fees and taxes: $1,336
▪ Finance charges: $1,798
In contrast, a Rav4 owner in Texas, a state California is often compared with, would pay much less.
AAA estimates that fees and taxes would amount to $495, maintenance and repair would cost $990 and finance charges would total $941. Insurance costs would be roughly the same.
This story was originally published September 6, 2023 at 7:35 AM.
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