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There is no universally cheapest powertrain when energy prices change. In AAA’s September 2026 U.S. comparison of selected new vehicles, hybrids had lower annual ownership costs than gasoline counterparts in all four categories studied. EVs used less expensive energy, but in the medium-sedan comparison their higher costs elsewhere outweighed the fuel savings. For a decision that holds up as prices move, compare the exact vehicles over the same ownership period using your local energy prices, charging habits, and other costs.
What AAA’s 2026 comparison found
AAA’s 2026 Your Driving Costs analysis used a five-year ownership period and 75,000 miles. It assessed seven vehicle categories and 34 top-selling models overall; the cross-powertrain comparison covered selected models in four categories: medium sedans, compact SUVs, medium SUVs, and pickup trucks. Its results are a dated U.S. comparison of those models—not a guarantee for every vehicle, used car, driver, or location.
| Comparison | AAA’s 2026 finding | How to interpret it |
|---|---|---|
| Hybrid vs. gasoline counterpart | Hybrids had lower annual ownership costs in all four cross-powertrain categories studied. | The result applies to AAA’s selected model comparisons, not every hybrid and gasoline pairing on sale. |
| EV vs. gasoline fuel cost | EV charging costs were about 66%–70% lower than gasoline fuel costs across the studied categories. | This is an energy-cost advantage, not a total-cost-of-ownership result. |
| Medium-sedan EV vs. gasoline medium sedan | Gasoline medium sedans averaged $10,582 per year, $3,080 less than EV medium sedans; AAA reported the EV total as 29.1% higher. | In this selected comparison, the EV’s lower charging expense did not make up for higher costs such as depreciation, fees, and finance charges. |
For context, AAA estimated the average cost of owning and operating a new vehicle at $12,863 per year, or $1,071.92 per month, in its 2026 overall analysis. AAA cautioned that methodology updates make that overall average not directly comparable with the prior year’s figure. It also reported weighted-average depreciation of $4,422 per vehicle per year, the largest ownership-cost category on average; that is not a forecast for any specific model.
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Why the lowest energy bill may not mean the lowest ownership cost
A fair comparison totals the costs of owning and operating each vehicle over the same term and mileage. AAA’s analysis includes fuel or electricity, maintenance, repairs and tires, license, registration and taxes, depreciation, and finance charges. A useful personal estimate should also reflect your insurance quotes and actual transaction price.
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Purchase price, depreciation, and financing
What you pay and what the car may be worth when you sell it can outweigh energy savings. Compare transaction prices after any incentives, expected resale values at the end of your chosen term, and financing charges using the same loan assumptions. Do not substitute an average depreciation figure for a model-specific resale estimate.
Insurance, taxes, maintenance, and tires
Get insurance quotes for the vehicles you are actually considering, and account for local registration charges and taxes. Estimate maintenance, repairs, and tires over your planned mileage rather than assuming every powertrain has the same costs. These items can vary with the model, location, driving conditions, and how long you keep the car.
Fuel or electricity
Use your local prices and realistic fuel economy or electricity consumption. For an EV, include the share of charging you expect to do at home, at work, and at public chargers; home charging can require compatible equipment and installation, with costs depending on your electrical setup, utility tariff, and installation quote. For a hybrid, account for your city/highway mix, since real-world fuel economy depends on driving pattern.
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How to model changing gasoline and electricity prices
AAA’s September 2026 ownership-cost study used regular gasoline at $4.152 per gallon and home electricity at 18.0 cents per kilowatt-hour. Those are study inputs, not promises about future bills or local rates. AAA reported gasoline prices 31.8% higher than in 2025 and electricity prices 7.8% higher for that study. The 2025 study’s inputs—$3.151 per gallon and 16.7 cents per kilowatt-hour—are historical context, not current price quotes.
To test volatility, hold the ownership term, mileage, and every non-energy assumption fixed, then change the fuel and electricity prices. An energy-cost estimate can be built from these inputs:
- Gasoline vehicle: annual miles ÷ real-world miles per gallon × local gasoline price per gallon.
- EV: annual miles × electricity use per mile, with home and public charging priced separately according to the expected charging mix.
Recalculate total ownership cost after each price change; do not compare energy costs alone. A gasoline-price increase tends to improve the relative economics of an efficient hybrid or EV if other inputs stay constant. A rise in electricity prices, greater reliance on public charging, or higher cold-weather energy use can reduce an EV’s operating-cost advantage. These are directional effects, not a universal break-even price: the result depends on the vehicles, rates, and usage assumptions in the scenario.
How charging venue and cold weather change EV costs
Charging price matters as well as vehicle efficiency. In a separate 2026 AAA temperature study, national energy prices dated March 27, 2026, were $3.978 per gallon for gasoline, $0.1745 per kilowatt-hour for residential charging, and $0.418 per kilowatt-hour for commercial charging. These figures belong to that temperature analysis and date; they differ from the September ownership study’s inputs because the reports used different dated prices and analyses.
AAA’s controlled tests used a chassis dynamometer, HVAC set to 72°F, and test-cell temperatures of 20°F, 75°F, and 95°F. At 20°F versus 75°F, hybrids lost 22.8% fuel economy; EVs lost 35.6% MPGe and 39.0% calculated range. In the same cold-versus-75°F comparison, EV operating costs rose by $32.11 per 1,000 miles using home rates and $76.93 per 1,000 miles using public charging. These are test-scenario results, not predictions of an owner’s annual costs; real outcomes depend on weather, vehicle, driving, and charging conditions.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.A practical way to compare the cars you might buy
- Match the comparison. Choose vehicles in the same class and compare new with new or used with used. Use the same ownership term, annual mileage, and financing assumptions.
- Enter purchase and resale assumptions. Use the actual transaction price after incentives, estimated resale value at the end of your term, and finance charges.
- Add non-energy ownership costs. Include insurance quotes, local taxes and registration, and expected maintenance, repairs, and tires.
- Set realistic energy inputs. Use local gasoline and residential electricity rates, your expected public-charging share and price, and plausible real-world efficiency for each model.
- Run more than one price scenario. Change gasoline and electricity prices while holding other inputs steady, then compare the resulting total costs. AAA’s Your Driving Costs calculator allows users to change fuel or electricity prices and covers six broad cost areas.
The result is a range tied to your assumptions, not a forecast of future prices. A comparison is most useful when you can see which inputs drive the difference—especially depreciation and purchase price on one side, and fuel or charging cost on the other.
Quick Recap
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