When shopping for a new car, it's easy to focus on two numbers: the sticker price and what you'll spend at the pump. But neither tells you the full story of what a vehicle will actually cost to own and get you where you want to go.

And with households already feeling the effects of higher prices for everything from groceries to utilities, taking a closer look at one of your biggest ongoing expenses — your vehicle — may be more important than ever.

AAA's 2026 Your Driving Costs analysis factors in expenses including fuel, maintenance, repairs, tires, depreciation, finance charges, taxes, and fees. And this year, AAA added something new: side-by-side comparisons of gas-powered, hybrid, and electric vehicles in several popular vehicle categories.

The results may be surprising. In every category where AAA compared all three powertrains, hybrids had the lowest total annual ownership cost.

Hybrids quietly came out on top

AAA compared gas, electric, and hybrid vehicles across four categories: medium sedans, compact SUVs, medium SUVs, and pickup trucks.

Hybrids were the least expensive to own in all four. A hybrid medium sedan had an estimated annual ownership cost of $10,204, compared with $10,582 for a gas-powered version and $13,662 for an electric version.

The same pattern appeared among SUVs. A hybrid compact SUV cost an estimated $11,201 per year, compared with $11,656 for gas and $11,888 for electric.

For medium SUVs, annual costs were $13,698 for hybrid models, $14,431 for gas, and $14,332 for electric.

Even pickup trucks followed the trend. Hybrid pickups averaged $16,117 per year, less than gas-powered pickups at $16,626 and electric pickups at $17,414.

That doesn't necessarily mean a hybrid will always be the cheapest choice for every driver or every vehicle. But across the models included in AAA's analysis, hybrids consistently paired lower fuel costs with fewer of the ownership-cost tradeoffs that affected some electric vehicles.

The cheapest option in the study? A hybrid sedan

Of the gas, hybrid, and electric vehicles included in AAA's powertrain comparison, the hybrid medium sedan came with the lowest annual cost at $10,204, or about 68 cents per mile.

At the other end of the spectrum was the electric pickup truck, with an estimated annual cost of $17,414, or about $1.16 per mile.

That's an important reminder that the kind of vehicle you choose can matter just as much as what powers it. A pickup truck may be exactly what someone needs for work, towing, or other uses. But drivers who don't need that capability could spend considerably less by choosing a smaller vehicle.

Aren't electric vehicles supposed to cost less to operate?

When it comes to fueling them, they generally do. AAA found that charging an EV cost about 66% to 70% less than fueling a comparable gas-powered vehicle in the categories studied.

But electricity — or gasoline — is only one part of the cost of owning a car. One of the biggest expenses is something drivers never see on a monthly bill: depreciation.

Depreciation, or the amount of value a vehicle loses over time, was the single largest ownership expense in AAA's study, averaging $4,422 per year. For some electric vehicles, higher depreciation, purchase prices, finance charges, taxes, and fees offset the money saved on fuel.

The medium sedan category offers one of the clearest examples. An electric medium sedan cost an estimated $13,662 per year to own, compared with $10,582 for a gas model and $10,204 for a hybrid.

So while an EV may cost considerably less to “fuel,” that doesn't automatically make it the least expensive vehicle overall.

What does a new car actually cost to own?

Across the broader Your Driving Costs study, AAA estimates that owning and operating a new vehicle now costs an average of $12,863 per year, or about $1,072 per month.

That figure includes much more than the car payment. AAA considers fuel or electricity, maintenance, repairs, tires, insurance-related ownership expenses, license and registration costs, taxes, depreciation, and finance charges when calculating what a vehicle costs over time.

The analysis assumes a new vehicle is owned for five years and driven 75,000 miles. Actual costs will vary based on the vehicle, where you live, how much you drive, financing, and other factors.

Look beyond the gas pump

The biggest takeaway may be that there isn't one expense that determines whether a car is affordable. A vehicle with great fuel economy could depreciate more quickly. A less expensive vehicle could have higher fuel costs. A larger vehicle may offer features or capability you need, but cost thousands more each year to own.

And at a time when many everyday expenses are competing for a bigger share of the household budget, those differences can add up. If you're already considering replacing your vehicle, it may be worth thinking not just about what you can afford to buy, but what you can afford to own year after year.

That's why AAA recommends thinking about the total cost of ownership before buying rather than focusing only on the purchase price or estimated fuel savings.

And for shoppers choosing between gas, hybrid, and electric versions of a vehicle, this year's results offer an especially interesting takeaway.

You might assume the traditional gas model would be cheapest. You might assume skipping the gas pump entirely would save the most money. But in AAA's latest comparison, the vehicle sitting quietly in the middle — the hybrid — came out ahead every time.
 

Want to see how the numbers stack up for your own situation? AAA's Your Driving Costs calculator lets you compare estimated ownership costs by vehicle category, powertrain, location, and driving habits.

CALCULATE YOUR DRIVING COSTS