GAS PRICES WAY UP - and so is the Annual Operating Cost for Your Car!
AVERAGE ANNUAL OPERATING COST OF YOUR NEW CAR COULD NEAR $9,100 - LIKELY MORE - IN 2008!
The recent surge in gas prices is no news to anyone, of course. The likelihood prices will drop anytime soon - remote. But the spike in the average annual operating cost for the average American driver really drives home the magnitude of the increase.
In 2007, the average price of a gallon of gasoline increased over 31% across the U.S. According to Mike Calkins, manager of AAA's Approved Auto Repair Network, and author of the Motor Club's annual "Cost of Owning and Operating Your Car" reports, the average national price of gas rose from $2.25 in January, 2007 to $2.94 per gallon at the end of last year.
Current average prices nationally exceed $3.24 per gallon of unleaded gas - and nearly $3.60/ gallon here in Chicago. (Indeed, some Chicago service stations are now charging more than $4.50 per gallon for Premium Unleaded, and over $4.60/gallon for Diesel.)
The price increase for gasoline, maintainence, and repair far exceeded any savings generated by improvements in average depreciated car value - which fell over $70/year, as today's cars are built better and typically last longer than older cars. Improved safety equipment has driven down the average auto insurance bill by $42 annually.
The analysis by the AAA Motor Club estimates the following estimated operating costs by vehicle size for 2008. All figures assume a 2008 model-year car, and 10,000 annual miles driven -
SMALL CARS, such as the Honda Civic, Ford Focus, or Chevrolet Cobalt, will cost 55.1 cents per mile to operate, or an estimated $5,510/year, up from 50.5 cents and $5,050 last year.
MID-SIZED CARS, such as the Chevy Impala, Ford Fusion, Toyota Camry or Honda Accord, will cost 71.9 cennts per mile to operate in 2008, versus 61.8 cents last year. The estimated operating cost will increase $1,010, to $7,190, from $6,180.
SUV'S, including the Chevy Trail Blazer, Ford Explorer, and Nisan Pathfinder will cost an average of 91 cents per mile, up 9.5 cents from the 2007 figure of 81.5 cents. The annualized cost could run $9,100 this year, versus $8,150 in 2007,
ON AVERAGE - the AAA estimates the average vehicle will cost $7,100 to operate through 2008 - or 71 cents per mile - likely to increase as gas prices increase.
And all numbers fail to include costs for parking and tolls, which have had their own sizable increases recently, especially in the Chicago area!
By the way, on this day after Tax Filing Deadline - the IRS 2007 Standard Deduction for business miles driven on your car - 50.5 cents for 2007 returns, up from 48.5 cents in 2006.
Read more in Jim Mateja's article in last Sunday's Chicago Tribune Auto Section.
DEAN MOSS & DEAN'S TEAM CHICAGO
