Question 1

What is the average cost per mile to drive a car?

Accepted Answer

According to AAA, the average cost per mile for a new vehicle is roughly $0.60–$0.80, depending on vehicle type. Sedans tend to be on the lower end, while trucks and SUVs cost more per mile due to higher fuel consumption, insurance, and depreciation.

Question 2

What does the IRS standard mileage rate cover?

Accepted Answer

The IRS standard mileage rate (70 cents per mile for 2025) is meant to cover all costs of operating a vehicle for business purposes, including gas, insurance, maintenance, depreciation, and registration fees. It is used for tax deductions.

Question 3

How do I reduce my cost per mile?

Accepted Answer

You can reduce cost per mile by driving more miles per year (spreading fixed costs), improving fuel efficiency through proper maintenance, shopping for competitive insurance rates, and choosing a vehicle with lower depreciation.

Question 4

Should I include car payments in cost per mile?

Accepted Answer

Yes, if you want the true total cost of ownership. Car payments (or lease payments) represent depreciation and financing costs. Including them gives a more accurate picture of what each mile actually costs you.

Question 5

Is an electric vehicle cheaper per mile than a gas car?

Accepted Answer

Typically yes for fuel costs alone — electricity is usually cheaper per mile than gasoline. However, EVs often have higher purchase prices and insurance costs. The total cost per mile depends on your electricity rates, driving habits, and the specific vehicles being compared.

Vehicle Type	Avg. Cost Per Mile
Small Sedan	$0.52
Medium Sedan	$0.61
Large Sedan	$0.69
Small SUV	$0.64
Medium SUV	$0.72
Pickup Truck	$0.79
Minivan	$0.68
Electric Vehicle	$0.55
Hybrid	$0.50

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