Fact #365: March 28, 2005
The Cost of Driving a Car

The American Automobile Association (AAA) reports each year on the average cost of owning and operating a car. The estimation includes vehicle depreciation, insurance, maintenance, fuel costs, tires, license, registration, taxes, and finance charges. Of the 56-cent estimate for 2004, only 6.5 cents, or 11.6%, is for gasoline and oil. The graph below shows the cost per mile with historical data adjusted for inflation.

Annual Driving Costs, 1994–2004
Graph showing the average cost of owning and operating an automobile from 1994 through 2004.

*Methodology revised by the American Automobile Association
Note: All other costs include maintenance, tires, vehicle depreciation, insurance, license, registration, taxes and finance charges.
Data for historical years adjusted for inflation using the Consumer Price Index.

Supporting Information

Annual Driving Costs, 1994–2004
Year Cost per Mile
(constant 2004 cents)
Gas and Oil Share
1994 48.9 11.8%
1995 49.7 11.7%
1996 50.0 10.9%
1997 51.4 12.1%
1998 52.0 11.1%
1999 51.9 9.8%
2000 52.5 11.6%
2001 53.0 13.2%
2002 51.3 9.7%
2003 51.7 11.6%
2004* 54.7 11.6%

*Methodology revised by the American Automobile Association
Other costs include maintenance, tires, vehicle depreciation, insurance, license, registration, taxes and finance charges.
Source: American Automobile Association, "Your Driving Costs," and previous annual editions.

 

Return to 2005 Facts of the Week