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1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problemsNeither body style is always cheaper to own. In AAA’s selected 2025 vehicle comparisons, a gas medium sedan averaged $9,956 per year at 15,000 miles, versus $10,279 for a gas compact SUV. That $323 difference favors the sedan in that comparison—not necessarily in the pair of vehicles you are considering. Purchase price, depreciation, financing, insurance, energy costs and your driving needs can change the result.
What the available comparisons show
AAA’s 2025 estimates compare selected vehicles by category and powertrain. At three annual mileage levels, its gas medium sedan estimate was lower than its gas compact SUV estimate:
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| Annual mileage | Gas medium sedan | Gas compact SUV | Lower estimate |
|---|---|---|---|
| 10,000 miles | $8,380 per year | $9,790 per year | Medium sedan |
| 15,000 miles | $9,956 per year | $10,279 per year | Medium sedan |
| 20,000 miles | $11,519 per year | $11,859 per year | Medium sedan |
These are AAA’s total annual cost estimates for its selected model groups, not quotes for every sedan or SUV. The categories matter: a medium sedan and a compact SUV are not a complete sample of either body style, and an inexpensive, efficient SUV may cost less than a higher-priced sedan.
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Powertrain can change the comparison. At 15,000 miles per year, AAA’s selected 2025 hybrid medium sedan averaged $9,479 annually, compared with $10,340 for its hybrid compact SUV. For electric models, the selected medium sedan averaged $13,692, while the compact SUV averaged $11,191. The results show why “sedan versus SUV” alone is not enough: compare the specific body style and powertrain combination.
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AAA’s 2026 release gives a different dated snapshot: its gas medium sedan estimate was $10,582 per year, and it reported this was $3,080 less than the comparable electric medium sedans in its study. AAA also found selected hybrids had lower annual costs than selected gas models in the medium-sedan, compact-SUV, medium-SUV and pickup categories it examined. Those results apply to the included vehicles and study assumptions.
Why the sticker price and fuel economy are not enough
Total ownership cost includes more than the price you pay at the dealer or the fuel you buy. AAA’s calculator documentation groups costs into depreciation, financing, fuel, insurance, fees and maintenance. A practical comparison should also account for likely repairs and tires, alongside registration and taxes.
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Depreciation can outweigh apparent savings at the pump. In AAA’s 2026 study, average depreciation was $4,422 per year and was the largest ownership expense AAA identified. The study’s assumed regular gasoline price was $4.152 per gallon and its home-charging electricity average was 18.0 cents per kWh; these are study inputs, not current prices for every driver or location. AAA’s 2026 average annual cost to own and operate a new vehicle was $12,863, but AAA cautions that its updated methodology makes that overall figure not directly comparable with the prior year.
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Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallFuel economy still matters, but it does not settle the total-cost question. The EPA reported an average real-world fuel economy of 27.2 mpg for new vehicles in model year 2024, a fleetwide figure rather than a direct sedan-versus-SUV comparison. Lower energy costs for an EV or hybrid can be offset by depreciation, financing or other expenses. Conversely, differences in local fuel or electricity prices and annual mileage can alter the calculation.
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How to compare the cars you might actually buy
Start with vehicles that meet the same practical needs. If one candidate cannot carry your regular passengers or cargo, it is not a useful cost comparison. For genuine alternatives, hold the assumptions steady and compare the exact year, make, model, trim and powertrain.
- Set the same ownership period and use. Use the same years of ownership, annual mileage and city/highway mix for both vehicles.
- Use the real transaction price. Compare negotiated prices after applicable incentives and discounts, not just window stickers. Include the financing rate and loan term.
- Estimate depreciation or resale value. Use the same ownership horizon for both candidates. A vehicle with lower energy costs may still have higher total costs if it loses more value.
- Use local operating costs. Apply local gasoline or electricity prices and realistic efficiency assumptions for your driving. Avoid treating a study-wide average as your own rate.
- Get insurance estimates for your situation. Request quotes for both exact vehicles using the same drivers, coverage and location. The available category estimates do not establish a universal insurance premium for sedans or SUVs.
- Add fees and upkeep. Include registration, taxes, scheduled maintenance, likely repairs and tires over the same period.
- Compare the totals and the trade-offs. A lower-cost vehicle is only a real alternative if it also meets your passenger, cargo and use requirements.
AAA’s Your Driving Costs calculator lets users choose new or used status, location, annual miles, vehicle, driving mix and energy price. AAA describes its estimate as generalized comparative information, so use it to structure a comparison rather than as a personalized quote.
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How to read the figures without overgeneralizing
AAA’s annual estimates are useful for comparing its selected vehicle groups under consistent study assumptions. They do not predict what a particular buyer will spend. Your location, mileage, insurance, energy prices, financing terms and the exact trim can change the result.
Keep the 2025 category estimates separate from AAA’s 2026 overall average. AAA says its 2026 methodology changed, so the overall figure is not directly comparable with the prior year. The 2025 sedan-versus-compact-SUV figures remain a dated comparison of the listed groups, not a like-for-like trend against the 2026 overall average.
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EPA categories also require care: its reporting distinguishes “car SUV” and “truck SUV” according to regulatory definitions, not simply the size labels shoppers use. For model year 2024, EPA reported that battery-electric vehicles made up 30% of car SUVs and plug-in hybrids another 3%; electrified vehicles affected category fuel-economy averages.
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