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A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11There is no universally cheapest powertrain when gasoline prices move. Compare the full cost of the exact vehicles over the same ownership period and mileage, then test how local gasoline and electricity prices change the result. AAA’s September 2026 comparison found hybrids cost less per year than their gasoline counterparts in the four vehicle categories it examined; EVs had much lower energy costs, but not always lower total costs.
What AAA’s 2026 comparison shows—and what it doesn’t
AAA’s 2026 Your Driving Costs study estimated the average cost of owning and operating a new vehicle in the United States at $12,863 a year, or $1,071.92 a month. That is an overall average, not a quote for a particular car. AAA said methodology updates mean this figure is not directly comparable with the previous year’s overall average. Its analysis covered seven vehicle categories and 34 top-selling models.
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The powertrain comparison is narrower: AAA compared selected gasoline, hybrid and electric models in four categories—medium sedans, compact SUVs, medium SUVs and pickup trucks—over five years and 75,000 miles. In each of those categories, the hybrids had lower annual ownership costs than the gasoline models. That result is useful for those matched selections, but it does not establish that every hybrid is cheaper than every gas car, or that a used-car comparison would come out the same way.
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For medium sedans, AAA put gasoline models at $10,582 a year and reported that comparable EVs cost 29.1% more, a gap of $3,080 a year. The study attributed the EV result in part to depreciation, fees and finance charges. Across its studied categories, AAA found EV charging costs about 66%–70% below gasoline fuel costs; that energy saving did not guarantee a lower total ownership cost.
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Depreciation was the largest ownership-cost category on average in AAA’s analysis, with a weighted average loss of $4,422 per year. This is a study-wide figure, not an estimate for any particular model. The comparison included energy, maintenance, repairs and tires, license and registration, taxes, depreciation, and finance charges.
Why a fuel-price swing can change the winner
When gasoline gets more expensive and other inputs stay fixed, a gasoline car’s fuel bill rises according to how much fuel it uses. A hybrid or EV can therefore become relatively more attractive. The reverse can happen if electricity prices rise, an EV relies heavily on public charging, or cold weather increases its energy use. These are directions of change, not a universal break-even prediction: the point at which one specific car becomes cheaper depends on its purchase price, efficiency, resale value and the owner’s local costs.
AAA’s September 2026 ownership study used regular gasoline at an average of $4.152 per gallon and home electricity at 18.0 cents per kilowatt-hour. AAA reported those study inputs were respectively 31.8% and 7.8% higher than in 2025. They describe the assumptions for that analysis, not a forecast or a rate every driver pays.
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For historical context, AAA’s 2025 study used gasoline at $3.151 per gallon and home electricity at 16.7 cents per kilowatt-hour. It found EVs had lower operating costs, particularly for energy and maintenance, but higher overall costs in the vehicle categories it studied that year. Those are 2025 study inputs and findings, not current local prices.
Compare the full cost, not just cost per mile
Use the same ownership term, annual mileage, vehicle class and purchase condition for every candidate. A new hybrid versus a used EV, for example, is not a clean powertrain comparison unless you deliberately account for the different purchase prices, ages and expected resale values.
| Cost area | What to include in your comparison |
|---|---|
| Purchase and resale | Actual transaction price after any incentives, plus an estimate of resale value at the end of your ownership period. The difference is the depreciation cost. |
| Financing | Finance charges based on your own loan terms and down payment; do not assume the same interest cost if the purchase prices or loan terms differ. |
| Insurance and government charges | Insurance quotes for the specific vehicles, plus local taxes, license, registration and other required fees. |
| Maintenance, repairs and tires | Expected costs across the same mileage and ownership period. Include tires as well as routine service and repairs. |
| Fuel or charging | Use your annual miles, the vehicle’s relevant real-world efficiency and the fuel or electricity prices you expect to pay. For an EV, account for the mix of home and public charging. |
AAA’s cost calculator organizes ownership expenses into six broad areas and allows users to change fuel or electricity prices. Use it as a way to structure the estimate, then replace broad assumptions with quotes and rates that fit your situation. The exact vehicles, transaction prices, insurance premiums and expected resale values can matter more than a national average.
Run a local price sensitivity check
A single estimate can hide how exposed each option is to energy-price changes. Keep mileage and all non-energy assumptions unchanged, then calculate at several plausible local price combinations. Do not call any one gasoline price the universal break-even point.
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Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →- Set the comparison period. Choose the same number of years and annual miles for each vehicle. AAA’s comparison used five years and 75,000 miles; your own expected holding period may differ.
- Estimate annual gasoline expense. Divide annual miles by the car’s miles per gallon, then multiply by your local price per gallon. For a hybrid, use an efficiency estimate that reflects your actual city/highway mix rather than relying only on a best-case figure.
- Estimate annual EV electricity expense. Use annual miles and the vehicle’s electricity consumption, then apply the relevant rate to each charging share. Separate home charging from public charging instead of pricing every kilowatt-hour at the residential rate.
- Change only the energy prices. Recalculate with a lower and higher gasoline price and, separately, different electricity rates or charging shares. Holding the purchase, financing and other assumptions constant makes the effect of energy-price changes visible.
- Restore the full ownership costs. Add depreciation, finance charges, insurance, taxes and registration, maintenance, repairs and tires. Compare total cost over the period, not only energy expense per mile.
For each candidate, write down the assumptions next to the result: vehicle and trim, new or used condition, mileage, ownership term, fuel economy or electricity consumption, energy rates, charging mix, purchase price, resale estimate and financing. If a modest change in one uncertain input reverses the result, treat the decision as sensitive rather than declaring a clear winner.
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Home versus public charging
An EV estimate based entirely on home electricity may not represent an owner who frequently uses public chargers. AAA’s separate 2026 temperature report used national prices dated March 27, 2026: $3.978 per gallon for gasoline, $0.1745 per kWh for residential charging and $0.418 per kWh for commercial charging. Those inputs belong to that report’s analysis and date; they differ from the prices in AAA’s September ownership study because the reports used different dated inputs and addressed different questions.
Home charging may require compatible equipment and installation. Whether it saves money depends on the vehicle, the home’s electrical setup, the utility tariff, any time-of-use rate and the installation quote. AAA’s analysis supports distinguishing residential from public charging costs; it does not test or endorse specific charger models.
Cold-weather use
AAA’s controlled 2026 temperature tests used a chassis dynamometer, set the cabin HVAC to 72°F, and tested at 20°F, 75°F and 95°F. At 20°F compared with 75°F, the hybrids in the tests lost 22.8% of fuel economy; the EVs lost 35.6% of MPGe and 39.0% of calculated range.
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Repair Windows errors before they cause bigger problemsFix Now →Scan for outdated or missing drivers - takes under a minuteDriver Scan →In those test scenarios, EV operating cost at 20°F rose by $32.11 per 1,000 miles using home rates and $76.93 per 1,000 miles using public charging, relative to the 75°F baseline. These are controlled-condition results using the temperature report’s energy prices, not annual cost increases for every owner. A local estimate should reflect your climate, typical trip lengths, cabin-heating needs and charging pattern rather than treating a test-cell result as a year-round forecast.
Which powertrain is most likely to fit your costs?
- Consider a hybrid if you want gasoline refueling and, in the categories AAA examined, a lower annual cost than the matched gasoline models. Your result still depends on the particular vehicle’s price, fuel economy, financing and resale value.
- Consider an EV if lower energy costs are valuable to you and your charging access, local rates and driving conditions suit it. Check the full ownership estimate carefully: AAA’s 2026 comparison shows that lower charging costs alone did not ensure a lower total cost.
- Consider a gasoline car if its purchase price, expected resale, insurance and other costs make it the better total-cost choice for your circumstances. Its exposure to gasoline-price changes will depend on fuel use and mileage.
AAA director of automotive engineering Greg Brannon said the matched-category comparison is intended to help consumers see how total ownership costs vary by powertrain, including depreciation and other expenses. That is the useful frame for this decision: treat a national study as a starting point, then compare the actual cars and prices available to you.
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