Ask most people what their car costs and they’ll name one or two figures they happen to remember. The real total is usually more than double that, and most of it is invisible. Here’s everything that actually goes into owning a car — and how to work out your own figure.
A benchmark to start from
AAA’s 2025 Your Driving Costs study estimated the average cost of owning and operating a new vehicle in the United States at $11,577 per year — about $965 a month — assuming 15,000 miles driven annually over a five-year period. In peso terms that’s roughly ₱706,000 a year (~₱59,000 a month) at an approximate ₱61 = US$1 (mid-2026; rates move). That’s a useful benchmark, but it’s an average: a small used hatchback driven modestly costs a fraction of that, while a large truck driven hard costs much more. Currencies and prices differ everywhere, so treat it as a shape, not your answer.
The line items nobody adds up
1. Depreciation. The value your car loses over time. For a new car this is often the biggest cost of all — AAA’s study attributed over $4,000 a year (~₱244,000) to it. You don’t feel it monthly, but you pay it when you sell. Buying used lets someone else absorb the steepest drop.
2. Fuel. The cost you notice most. It swings with prices and, crucially, with your car’s efficiency — which is why tracking fuel economy pays off. For what a tracked fuel bill actually looks like over months rather than a single tank, see nine months on one Montero Sport.
3. Insurance. Varies enormously by country, city, car, and driver. Shop it at every renewal.
4. Registration, taxes, and inspections. The mandatory annual or biennial costs of keeping the car legal — easy to forget until they’re due. (See never miss a registration or insurance renewal.)
5. Maintenance and repairs. Oil, tires, brakes, fluids, and the occasional surprise. Predictable if you follow a maintenance schedule; painful if you don’t.
6. The small stuff. Tolls, parking, car washes, accessories. Individually minor, collectively real.
How to find your own number
The benchmark is fine for context, but your car isn’t average. The only accurate method is to track a year of real spending and divide by 12 — or, better, watch it accumulate in real time. Two numbers are worth knowing:
- Cost per month — what the car takes out of your budget.
- Cost per kilometer (or mile) — total spend divided by distance driven. This is the honest measure of what driving costs you, and it makes comparing cars or deciding on a trip much clearer.
This is exactly what the expenses & cost per km feature is built for: log fuel, servicing, insurance, and the rest, and Kotselog turns it into a monthly total and a clean cost per kilometer automatically. Open the app and start capturing your real number instead of guessing.
Why it’s worth knowing
A clear cost picture helps you budget, decide whether to keep or sell, spot when repairs are outpacing the car’s value, and tell whether a quote is fair. It also builds the service-and-expense history that raises resale value when you do sell.
Driving in the Philippines? The real cost of owning a car in the PH breaks the same categories down in pesos.
Frequently asked questions
What is the average monthly cost of owning a car?
AAA's 2025 Your Driving Costs study put the average cost of owning and operating a new vehicle in the US at about $11,577 a year (roughly ₱706,000 at ≈₱61 = US$1), or about $965 a month (~₱59,000), based on 15,000 miles a year over five years. Your number depends heavily on the car, your mileage, fuel prices, and insurance where you live.
What's the biggest hidden cost of car ownership?
Depreciation — the value the car loses over time. It's invisible month to month because you don't write a check for it, but for a new car it's often the single largest cost, frequently more than fuel.
How do I calculate my own cost per month?
Add up a year of all car costs — depreciation, fuel, insurance, registration, maintenance, repairs, tolls and parking — then divide by 12. Tracking expenses as you go makes this accurate instead of a guess.
How Kotselog helps: Track every expense and learn what your car truly costs to run. See the expenses feature →
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