Average Driving Costs Up 1.5 Cents for 2003

AAA Reports Increase Due to Higher Gas and Insurance Prices

MINNEAPOLIS, May 12 -- According to an annual AAA study, the average cost of driving a car in 2003 will be 51.7 cents-per-mile, 1.5 cents higher than in 2002. This is the largest increase reported by AAA since 2000 when driving costs increased 2.1 cents to 49.1 cents per mile.

Motorists driving 15,000 miles this year will spend an average annual total of $7,754 on auto-related ownership and operating expenses, up $221 since last year. Ownership costs (taxes, depreciation, finance charges, registration, insurance and license fees) increased seven cents per day, from $15.79 to $15.86, due to higher insurance costs. Operating costs (gas, oil, tires and maintenance) increased 1.3 cents per mile, from 11.8 cents to 13.1 cents, as a result of higher pump prices.

The figures are based on a composite national average of three domestically built 2003 cars -- a subcompact Chevrolet Cavalier LS, a mid-size Ford Taurus SEL Deluxe and a full-size Mercury Grand Marquis LS. These similarly equipped vehicles include air conditioning, automatic transmission, power steering, AM/FM stereo, dual air bags, antilock brakes, cruise control, tilt steering wheel, tinted glass and a rear-window defogger. The costs are based on a four-year/60,000 miles ownership period.

The AAA study also separately calculated driving costs for sport-utility vehicles and minivans. The cost to drive a 2003 Chevrolet TrailBlazer is 56.1 cents per mile, up 2.3 cents from last year, and the driving costs for a Dodge Caravan SE are 50.3 cents per mile, up 1.2 cents from last year. The information on these SUVs is not used to determine the composite national average, but is included in the report to help buyers estimate driving costs for these popular vehicles.

Driving costs in this study are reflective of personal driving and are significantly different from costs typically used to determine reimbursement for business-related use of a personal vehicle. AAA's cost-per-mile estimate of 51.7 cents is considerably higher than the 36 cents-per-mile allowed by the U.S. Internal Revenue Service, which has never allowed full reimbursement of all expenses associated with automobile ownership and use.

AAA's cost estimates are based on computations made by Runzheimer International of Rochester, Wis., a management consulting firm specializing in transportation, travel and living costs.

AAA offers automotive, travel, insurance and financial services to more than 45 million members in the United States and Canada. AAA Minnesota/Iowa is part of The Auto Club Group, which has 4.1 million members in eight Midwest states. AAA Minneapolis serves more than 174,000 members in Hennepin County.

   AAA's Annual Driving Cost Estimates
   (Based upon 15,000 miles driven per year)

   Year        Cost Per Mile      Cost Per Year
   2003        51.7 cents         $7,754
   2002        50.2 cents         $7,533
   2001        51.0 cents         $7,654
   2000        49.1 cents         $7,363
   1999        47.0 cents         $7,050
   1998        46.1 cents         $6,908
   1997        44.8 cents         $6,723
   1996        42.6 cents         $6,389
   1995        41.2 cents         $6,185
   1994        39.4 cents         $5,916
   1993        38.7 cents         $5,804
   1992        38.8 cents         $5,824