![\"AAA\"](\"http:\/\/www.clarksvilleonline.com\/wp-content\/uploads\/2010\/05\/AAA.gif\" "\\"AAA\\"")
Orlando, FL<\/strong> – AAA\u2019s 2018 Your Driving Costs<\/em> study reveals the largest expense associated with purchasing a new car is something many drivers fail to consider \u2013 depreciation. In fact, it accounts for almost 40 percent of the cost of owning a new vehicle \u2013 more than $3,000 per year \u2013 and is influenced by a number of factors, including shifting consumer preferences.<\/p>\nAAA urges car buyers to think about both market trends and length of ownership when shopping for their next vehicle purchase. <\/p>\n
![\"Drivers](\"http:\/\/www.clarksvilleonline.com\/wp-content\/uploads\/2018\/09\/AAA-Your-Driving-Costs.jpg\" "\\"Drivers")
<\/a>Drivers should keep resale value top of mind when buying a new vehicle. (AAA)<\/p><\/div>\n
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\u201cNew vehicles offer the latest designs, cutting-edge technologies and warranties that offer peace of mind,\u201d said John Nielsen, AAA\u2019s managing director of Automotive Engineering and Repair. \u201cBut, car owners that like to change vehicles frequently should be thinking about the resale value \u2013 not just the purchase price \u2013 when choosing their next ride.\u201d<\/p>\n
AAA\u2019s annual analysis found demand for sedans has slipped as American appetite shifts to SUVs and pickup trucks.<\/p>\n
As a result, depreciation costs of these once-popular vehicles increased up to 13 percent as compared to last year.<\/p>\n
Electric and hybrid vehicles, however, have seen a gain in popularity with 20 percent of Americans<\/a> saying they will likely go electric for their next vehicle purchase, up from 15 percent the previous year. This year, these vehicles also saw a dip in depreciation and offer many cost benefits such as lower repair and maintenance bills, making going green a more affordable choice than in years past.<\/p>\n Buyers often only give priority to purchase price and monthly payment when choosing a new car, sometimes selecting a vehicle based on the best deal available. The length of car ownership, however, is of equal importance.<\/p>\n Consumers who plan to keep a vehicle for only a few years should be cautious of deep discounts and incentives offered by automakers and dealers.<\/p>\n These are often designed to sell less popular models and directly influence depreciation. Low down payments and extended finance terms can also have a similar effect. Stretching a car loan over five, six or even seven years may be an effective way to lower payments, but owners may quickly find themselves owing more than the vehicle is worth.<\/p>\n Leasing is similarly affected since payments are based in part on the projected residual value of the car at the end of the lease, serving as a good indicator of which models experience higher or lower depreciation. Since resale value is not a factor at the end of the lease period, buyers who prefer less popular models or only want a vehicle for a short time, may consider leasing a more viable option.<\/p>\n [320left]\u201cThe secret to minimizing depreciation costs?\u201d continued Nielsen. \u201cKeep your car for a long time and keep it well-maintained or even consider buying a quality, pre-owned vehicle.\u201d<\/p>\n AAA\u2019s Your Driving Costs<\/em> found the average cost to own and operate a new vehicle in 2018 is $8,849 per year. The figure is calculated based on the cost of fuel, maintenance, repairs, insurance, license\/registration\/taxes, depreciation and loan interest.<\/p>\n The study examined 45 top-selling 2018 model-year vehicles across the following nine categories.<\/p>\n