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There is no single annual price for owning a “cheap SUV”: the total depends on what you pay, how quickly it loses value, how you finance and drive it, and what insurance, fuel, fees, maintenance, and repairs cost where you live. As a U.S. benchmark, AAA’s 2025 study estimated selected new gas compact SUVs at an average of $10,279 per year when driven 15,000 miles annually. That is a useful comparison point—not a quote for every inexpensive or used SUV.
What does it cost to own an SUV each year?
AAA’s study of selected 2025-model-year compact SUVs estimated these annual ownership costs at 15,000 miles per year:
| Powertrain | Average annual cost | Study scope |
|---|---|---|
| Gas | $10,279 | Selected compact SUV models; 15,000 miles annually |
| Hybrid | $10,340 | Selected compact SUV models; 15,000 miles annually |
| Electric | $11,191 | Selected compact SUV models; 15,000 miles annually |
These are averages for selected new models, not a forecast for a specific bargain-priced vehicle, a used SUV, or a driver with different mileage. AAA’s separate 2026 study put the average estimated cost to own and operate a new vehicle at $12,863 per year, or $1,071.92 per month. AAA says changes to its methodology mean that figure is not directly comparable with its 2025 total. It also reported a sales-weighted average new-vehicle MSRP of $39,376 and weighted average depreciation cost of $4,422 per year; neither figure is specific to cheap SUVs. AAA’s 2026 driving-cost study explains its findings.
What costs belong in the total?
A vehicle’s monthly payment is only one part of ownership. AAA groups costs into depreciation, financing, fuel, insurance, fees, and maintenance. Maintenance includes routine service, unexpected repairs, and tire replacement. Kelley Blue Book also distinguishes depreciation from out-of-pocket expenses such as fuel, insurance, financing, state fees, maintenance, and repairs.
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- Depreciation: The value the SUV loses while you own it. It may not arrive as a monthly bill, but it is a real cost—especially if you sell or trade the vehicle later.
- Financing: Interest and other borrowing costs, in addition to the amount borrowed toward the purchase.
- Fuel or electricity: Driven by annual mileage, efficiency, local energy prices, and the mix of city and highway driving.
- Insurance: A vehicle-specific cost shaped by the driver, location, coverage, and insurer.
- Government fees: Taxes, registration, and other applicable state or local charges.
- Maintenance, repairs, and tires: Routine service as well as less predictable work and replacement tires.
For a broader explanation of the categories, see AAA’s driving-cost calculator and methodology and Kelley Blue Book’s guide to car ownership costs.
Why a low purchase price may not mean a low total cost
A low sticker price can reduce the amount you borrow, but it does not by itself reveal depreciation, insurance, fuel, fees, or the likelihood and cost of repairs. For a used SUV, the relevant estimate depends on the individual vehicle’s purchase price, condition, and expected resale value as well as the owner’s expenses. The cited studies do not define a “cheap SUV” price band or establish one annual ownership cost for that category.
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Do hybrids and EVs always cost less to run?
No. Energy cost is only one part of the total. In AAA’s 2025 compact-SUV comparison, the electric examples had lower fuel costs than the gas examples but higher depreciation and insurance costs. The study’s averages—$10,279 for selected gas compact SUVs, $10,340 for hybrids, and $11,191 for electric models—show why fuel savings alone do not establish which option is cheaper overall. They are study averages, not a universal ranking for every model or driver.
As AAA director of automotive engineering Greg Brannon put it: “By looking at EVs, hybrids and traditional gas-powered vehicles within the same categories, consumers can better understand how total ownership costs vary by powertrain.” AAA’s 2026 release includes the statement.
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How to estimate the cost of your SUV
- Choose the exact vehicle. Use the model year, make, model, and trim rather than a broad label such as “compact SUV.”
- Set your location and usage. Enter your state, annual mileage, and city/highway driving mix. These inputs affect fees, energy costs, and the estimate as a whole.
- Enter your energy price. Use the fuel price or electricity cost that applies to your driving and charging situation.
- Include all ownership categories. Consider depreciation, financing, fuel or electricity, insurance, fees, maintenance, repairs, and tires—not just the payment.
- Treat the result as an estimate. AAA describes calculator results as generalized estimates; actual expenses vary with the vehicle and the owner’s circumstances.
AAA’s calculator lets you vary the state, mileage, driving mix, vehicle, and fuel or electricity price. Its driving-cost calculator is a starting point; for insurance and repairs, use estimates that reflect your specific vehicle and circumstances.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to compare two inexpensive SUVs fairly
Use the same ownership period and annual mileage for each vehicle. Compare the actual transaction price and expected resale value alongside financing, fuel or electricity, insurance, taxes and registration, maintenance, repairs, and tires. Keep location, driving mix, energy prices, and insurance assumptions consistent where possible. A cheaper payment or better fuel economy alone cannot show which SUV will cost less to own.
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