AAA Finds Hybrids Cheapest in All Four Direct Vehicle-Class Comparisons

Electric vehicles had the lowest energy costs and lower maintenance expenses, yet hybrids still finished cheapest in every direct three-powertrain comparison in AAA’s 2026 Your Driving Costs study. The tension lies in a less visible expense: AAA’s projected depreciation often outweighed the electric vehicles’ operating savings.

Released Sept. 15, the study compared selected electric, gasoline and hybrid models within four classes: medium sedans, compact SUVs, medium SUVs and pickups. AAA estimated ownership over five years and 75,000 miles, equivalent to 15,000 miles annually.

The hybrid was the lowest-cost powertrain in all four categories. The annual figures were:

• Medium sedan: $10,204 for hybrid, $10,582 for gasoline and $13,662 for electric.
• Compact SUV: $11,201 for hybrid, $11,656 for gasoline and $11,888 for electric.
• Medium SUV: $13,698 for hybrid, $14,431 for gasoline and $14,332 for electric.
• Pickup: $16,117 for hybrid, $16,626 for gasoline and $17,414 for electric.

That made the electric medium SUV the sole category in which an EV beat its gasoline counterpart, and then by only $99 per year. Electric models cost more than gasoline alternatives in the other three classes. Hybrids’ annual advantage over gasoline ranged from $378 for medium sedans to $733 for medium SUVs.

Operating savings met a larger projected loss in value

The results were not driven by poor electric efficiency. Using gasoline at $4.152 per gallon and home electricity at 18 cents per kilowatt-hour, AAA calculated EV energy expenses that were 66% to 70% below gasoline fuel costs in every compared class.

EV maintenance costs were also lower across all four comparisons, with annual differences ranging from $45 for the medium SUV to $552 for the compact SUV. AAA’s maintenance category includes scheduled service, wear-and-tear repairs, an extended warranty and one replacement set of tires.

Projected depreciation reversed those advantages. AAA defines depreciation as the purchase price minus the vehicle’s estimated trade-in value after five years and 75,000 miles. For the electric medium sedan, it projected depreciation of $6,786 annually, compared with $3,330 for the gasoline sedan.

That $3,456 depreciation disadvantage was larger than the electric sedan’s entire $3,080 annual ownership-cost gap. In other words, the sedan’s energy and maintenance savings reduced the effect of depreciation and other expenses, but did not eliminate it.

The same pattern appeared elsewhere. AAA projected that annual EV depreciation would exceed the corresponding gasoline figure by $1,730 for compact SUVs, $2,025 for medium SUVs and $2,178 for pickups. If each EV were assigned the same depreciation as its gasoline counterpart in a simple recalculation of AAA’s tables, the EV would become cheaper in all four categories. That is an illustration of depreciation’s influence, not AAA’s forecast.

Depreciation is decisive and still only an estimate

The five-year trade-in values of 2026 vehicles cannot yet be observed. AAA’s depreciation figures are projections informed partly by previous trade-in and sales data for similar vehicles. Actual resale values will depend on future demand, incentives, prices and conditions in the used-vehicle market.

Other purchase-related expenses added to the EV totals. AAA based financing on a five-year loan with 15% down at the national average interest rate. The electric pickup’s annual finance charge was $2,149, versus $1,601 for the gasoline pickup. License, registration and tax expenses were $225 to $453 higher annually for each EV in the comparison.

Hybrids occupied a middle ground: lower fuel consumption without the same projected depreciation, financing and fee burdens assigned to the electric models. AAA also projected lower hybrid depreciation than gasoline depreciation in the medium-SUV and pickup comparisons.

The charging assumption establishes another important boundary. AAA used a home-electricity rate, generally the least expensive way to charge. Drivers who depend heavily on higher-priced public charging could retain an energy advantage over gasoline but realize smaller savings than these tables show.

AAA separately estimated that the average new vehicle costs $12,863 per year, or $1,071.92 per month, across 34 top-selling models in seven categories. It cautioned that this overall figure cannot be compared directly with the smaller four-class powertrain analysis. Within those matched classes, the result is clearer: hybrids won every comparison, while the electric outcome depended heavily on resale values that will not be known for another five years.

By Thomas Caldwell — AMI’s senior editor for mechanical and mobility engineering, covering vehicle electronics, systems integration, electrification, chassis systems, propulsion, and safety policy.