AAA Study: Cost Of Ownership Falls In 2014 Due To Lower Fuel Prices
In its annual Your Driving Costs study, AAA says the cost of owning and operating a vehicle has fallen on the back of lower fuel prices, though its findings leave a little to be desired with current fuel costs.
USA Today reports the methodology behind AAA’s study uses fuel prices from the final three months of the outgoing year. In 2013, prices were beginning to peak during the collection period, peaking earlier this year before falling to current levels. The club’s manager of technical services, Michael Calkins, acknowleged as much during this year’s announcement, but stated that AAA uses its preferred methodology “for consistency in the results.”
Other factors in lowered O&O costs in this year’s study include the increased fuel efficiency in newer vehicles — a result of increasing CAFE targets — as well as lower tire costs. Also noted: Insurance costs remained stable while depreciation fell 1.71 percent to $3,510 per year for the first five years, and maintenance costs climbed 2 percent to 5.06 cents per mile.
As for the cost of ownership for 2014, sedan owners will see a 2.7 percent decrease overall, with an average cost of 59.2 cents per mile and $8,876 per year based upon 15,000 miles driven annually.
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
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One of the main factors leading to reduction in fuel costs is the hydraulic fracturing process allowing us to get more oil out of wells. Imagine how much lower oil prices could be if we had a president OK the Keystone XL pipeline. Jobs for Canadians. Jobs for Americans. Economic benefits all around. And as for the treehuggers: Pushing oil through pipelines uses less fossil fuels than shipping it or trucking it. Why u no approve of Keystone XL?
Because of the special interests. Buffett is profiting handsomely. Plus this profiteering guy: http://www.powerlineblog.com/archives/2014/04/the-epic-hypocrisy-of-tom-steyer.php
Yay more awesome stock photos!
Lower fuel prices ??? I haven't seen a price drop in eastern Canada for quite a while, if only a cent or two.