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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchThere is no universally cheapest powertrain when gasoline prices move. In AAA’s September 2026 U.S. comparison of selected new vehicles, hybrids had lower annual ownership costs than their gasoline counterparts in all four categories studied. EVs used less-costly energy, but in the comparison’s medium-sedan category, higher costs elsewhere made the EV more expensive overall. Your result depends on the exact vehicles, purchase and resale prices, local energy rates, charging access, driving pattern and ownership term.
What does AAA’s latest comparison show?
AAA’s 2026 Your Driving Costs study estimates an average annual cost of $12,863 to own and operate a new vehicle, or $1,071.92 per month. That overall figure covers seven vehicle categories and 34 top-selling models; AAA says its methodology changed, so the result is not directly comparable with the previous year’s overall average.
The study’s powertrain comparison is narrower: it compares selected models in four categories—medium sedans, compact SUVs, medium SUVs and pickup trucks. AAA found that hybrids cost less per year than gasoline-powered counterparts in each of those categories. That is useful evidence for the models and assumptions AAA studied, not a guarantee that every hybrid beats every gas car.
| AAA 2026 selected-model comparison | Reported result | How to read it |
|---|---|---|
| Medium sedans: gasoline vs. EV | Gasoline: $10,582 per year. The EV cost $3,080 more, or 29.1% more; that implies $13,662 per year for the EV by addition. | AAA attributed the EV’s higher total in part to depreciation, fees and finance costs, despite lower energy costs. |
| Hybrids vs. gasoline vehicles | Hybrids had lower annual ownership costs in all four categories studied; category-by-category dollar amounts are not stated in AAA’s published summary. | The finding applies to AAA’s selected models and study assumptions, not all vehicles in those classes. |
| EV charging vs. gasoline fuel | EV energy costs were about 66%–70% lower across the studied categories. | This is the energy-cost comparison, not the total-cost comparison. |
For the September 2026 ownership-cost study, AAA used regular gasoline at an average $4.152 per gallon and home electricity at 18.0 cents per kilowatt-hour. AAA reported that those inputs were 31.8% and 7.8% higher, respectively, than in its 2025 analysis. They are dated study assumptions, not forecasts or a quote for your household.
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AAA’s 2025 study used $3.151 per gallon for gasoline and 16.7 cents per kilowatt-hour for home electricity. It found EVs had lower operating costs, especially for energy and maintenance, but higher overall costs in the vehicle categories it studied. Those earlier figures are historical context, not current local prices.
Why can a vehicle that uses less energy still cost more?
Fuel or charging is only one part of ownership cost. A fair comparison adds up costs over the same time and mileage, including what you pay to buy the vehicle and what you may recover when you sell it. AAA’s 2026 analysis covers fuel, maintenance, repairs and tires, license, registration and taxes, depreciation, and finance charges.
- Depreciation: AAA says depreciation was the largest ownership cost on average in its 2026 analysis, with a weighted average loss of $4,422 per year. That is an across-study average, not an estimate for a particular model.
- Financing: The amount financed, interest rate and loan term affect the total cost. A vehicle’s purchase price alone does not capture finance charges.
- Insurance and taxes or registration: These depend on the vehicle and where it is registered; obtain vehicle-specific insurance quotes and local fee estimates.
- Maintenance, repairs and tires: Include expected costs over your intended ownership period rather than assuming energy savings settle the comparison.
- Fuel or electricity: Estimate this from the vehicle’s consumption and the prices you actually expect to pay.
The category totals can reverse an energy-cost advantage. AAA’s medium-sedan example shows why: its selected EVs had substantially lower energy costs than gasoline models, yet the EV’s total annual ownership cost was higher under the study’s assumptions.
How do gasoline and electricity price changes affect the result?
Holding vehicle efficiency, mileage and every non-energy cost constant, a gasoline-price increase raises the cost of a gas-only vehicle more than that of a more-efficient hybrid or an EV. That shifts the comparison in favor of the latter two. The reverse can happen if electricity gets more expensive, an EV driver relies more on public charging, or cold weather increases energy use. This is a direction-of-effect analysis, not a universal break-even gasoline price: the result depends on the vehicles, prices, miles and charging mix.
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Use a scenario comparison rather than treating one national study snapshot as a forecast. For each vehicle, calculate the energy-cost line under at least your current local prices and plausible higher or lower prices, while keeping the rest of the assumptions visible. A simple estimate is:
- Gasoline vehicle: annual miles ÷ expected miles per gallon × local gasoline price per gallon.
- EV: annual miles × expected kilowatt-hours per mile × the applicable electricity price per kilowatt-hour. Use a weighted rate if charging at home and in public at different prices.
These estimates isolate energy. Add depreciation, financing, insurance, taxes and registration, maintenance, repairs and tires separately to compare total cost. AAA’s calculator groups costs into six broad areas and allows users to change fuel or electricity prices; driving habits, geography, operating conditions and the specific vehicle still affect actual results.
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What can make an EV’s energy savings smaller?
Public versus home charging
Where you charge matters because residential and public charging rates can differ. AAA’s temperature study used national energy prices dated March 27, 2026: $0.1745 per kWh for residential charging and $0.418 per kWh for commercial charging, alongside gasoline at $3.978 per gallon. Those inputs belong to that temperature analysis, not the September ownership-cost study. If you cannot charge at home or use public fast charging often, model the share of charging at each price rather than applying a home rate to every mile.
Home charging may require compatible equipment and installation. The economics depend on your vehicle, electrical setup, utility tariff and installation quote; the AAA figures do not establish the cost or suitability of any particular charger.
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Cold weather and driving conditions
AAA’s 2026 temperature analysis tested vehicles on a chassis dynamometer with the HVAC set to 72°F, in test-cell temperatures of 20°F, 75°F and 95°F. At 20°F versus 75°F, the hybrids tested lost 22.8% in fuel economy; the EVs lost 35.6% in MPGe and 39.0% in calculated range.
At 20°F, AAA calculated an EV operating-cost increase of $32.11 per 1,000 miles using home electricity rates and $76.93 per 1,000 miles using public charging, compared with its 75°F baseline. These are controlled test scenarios, not an annual bill estimate or a claim that all drivers will see those changes. Your climate, trip length, vehicle and charging prices matter.
For hybrids, real-world driving mix also matters: city and highway patterns affect the fuel economy you achieve. Use an estimate that fits your actual routes rather than relying only on a vehicle’s headline efficiency figure.
How to compare vehicles for your own budget
- Match the vehicles and ownership plan. Compare the same class and condition (new with new, or used with used), over the same number of years and annual mileage. AAA’s 2026 study used five years and 75,000 miles.
- Use your actual purchase assumptions. Start with the transaction price after any incentives available to you. Estimate the resale value at the end of your chosen term; the difference is a key part of depreciation.
- Get financing and insurance figures. Use the rate and term you could actually obtain, then request insurance estimates for each vehicle. Add local taxes, registration and license fees.
- Estimate non-energy running costs. Include maintenance, repairs and tires for the same mileage and period. Keep the source and assumptions for each estimate visible.
- Calculate energy with local prices. Use expected real-world fuel economy or electricity consumption, your annual miles, local gasoline prices, your home tariff and the public-charging share you expect. For a hybrid, reflect your city/highway mix.
- Stress-test price changes. Recalculate energy costs with higher and lower gasoline prices and, for an EV, higher and lower electricity rates or a different home/public charging split. Do not change other assumptions unless you intend to model those changes too.
- Compare the total over the full term. Add the categories for each vehicle and compare like with like. Also inspect the energy-only result so you can see how much of the total difference is exposed to fuel and electricity price changes.
AAA’s 2026 ownership analysis is a dated U.S. comparison, and its cross-powertrain results cover selected new models in four categories. The five-year, 75,000-mile method is a useful common frame, but if your mileage, ownership period or vehicle differs, substitute your own assumptions instead of carrying the study total over unchanged.
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