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March 31, 2006
DRIVING UP COSTS Motorists spend nearly $8,000 a year to keep their car on roadAAA REPORT ALSO OFFERS CONSERVATION TIPSSPECIAL TO THE PVT
The 2006 edition of AAA's Your Driving Costs study shows the overall average cost of owning and operating a passenger vehicle is 52.2 cents per mile, or $7,834 per year based on 15,000 miles of driving. AAA estimates driving costs based on an extensive list of factors including gas, maintenance, tires, depreciation, and insurance. AAA calculates the depreciation rate of an average new car will be $3,392 per year of ownership. Full insurance coverage will average $926 per year. Routine maintenance - including the manufacturer's recommended normal service operations - is estimated to cost 4.9 cents per mile, or $552. Annual finance charges, computed on a national average basis, are estimated at $716 this year. The finance numbers are based on a five-year loan at 6 percent interest with a 10 percent down payment. AAA's study reports the retail price of tires is 0.7 cents per mile. As consumers are all too aware, the cost of filling up your tank is on the rise. Gas prices are up 15.8 percent from last year's study to $2.41 per gallon, or 9.5 cents per mile. Last year fuel costs averaged 8.2 cents per mile. The fuel price information is based on data from AAA's Fuel Gauge Report at www.aaafuelgaugereport.com. AAA's estimate of driving costs for 2006 is not directly comparable to data for previous years due to a revision to the survey methodology that better reflects the costs associated with a wider range of vehicle choices. AAA's study continues to calculate the average costs of all expenses associated with owning and operating vehicles over five years and 75,000 miles of driving. However, AAA now calculates those costs based on averages for five top-selling passengers cars in each of three vehicle size categories, rather than on one representative vehicle in each category as in the past. The vehicle sizes used in this year's average are small, medium and large sedans. SUVs and minivans are not included in the composite average. The purpose of AAA's annual study is to show consumers how to understand and calculate the full costs of owning and operating their vehicles. Only by factoring in all of the related costs of driving can consumers accurately budget for their future expenses. AAA's driving cost figures are not intended for use by businesses in the reimbursement of employee driving expenses. "AAA's research shows that driving a new vehicle that retains a high resale value and has moderate insurance costs can help offset other costs such as fuel and tires," said Michael Geeser, spokesman for AAA Nevada. "Selecting a model that is more fuel efficient than others in its size-class, also will help consumers contain their driving expenses." One way to keep driving costs down is to shop aggressively for the lowest gas prices. AAA Nevada has a tool that can help, located online at www.aaa.com/gasprices. AAA Nevada offers a wide array of automotive, travel, insurance and financial services to more than 300,000 members. AAA has been a leader and advocate for the safety and security of all travelers since it was founded more than 100 years ago. |
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