---

Driving Costs Edged Up In 3rd Quarter, AAA Says

15 October 1997

Driving Costs Edged Up In 3rd Quarter, AAA Says

    ORLANDO, Fla., Oct. 15 -- The cost of owning and operating a
new vehicle was up slightly in the third quarter, rising .3 cent to 45.1 cents
per mile, according to AAA.
    Motorists now spend an average of $6,795 per year in driving-related
expenses, based on 15,000 miles of driving.
    Driving costs during the second quarter were unchanged from AAA's initial
1997 driving cost figure of 44.8 cents per mile.
    AAA's study of driving costs is updated quarterly from computations made
by Runzheimer International of Rochester, Wisc.  The management consulting
firm specializes in transportation, travel and living costs.
    The average per-mile cost is determined by combining operating and fixed
costs.  During the third quarter of this year, motorists spent an average of
10.8 cents per mile on operating costs such as gasoline, oil, tires and
maintenance, up .1 cent from July.  Fixed costs, including insurance,
depreciation, registration, taxes and financing, averaged $14.11 per day, up 6
cents.
    AAA's cost estimates are based on a composite national average of three
domestically built cars: a compact Chevrolet Cavalier, a mid-size Ford Taurus
and a full-size Mercury Grand Marquis.
    New England was the most expensive region in which to own and operate a
car in the third quarter, with total costs of 46.8 cents per mile.  Southeast
motorists had the lowest costs, paying 43.8 cents per mile.
    Other regional costs were:  Mid-Atlantic, 45.6 cents; West, 45.9 cents;
Southwest, 45.1 cents; Great Lakes, 44.9 cents; and  Midwest, 43.9 cents.
    These costs are significantly different from typical reimbursement
payments for business-related use of a personal vehicle.  Such payments
usually cover operating costs for actual mileage and only the portion of the
fixed ownership costs related to the business use of the vehicle.
    AAA is a not-for-profit federation of 97 clubs with more than 1,000
offices providing 40 million members in the United States and Canada with
travel, insurance, financial and auto-related services.

               AAA's "YOUR DRIVING COSTS"  -- QUARTERLY UPDATE


                                       1997            1997
    REGION                      2nd quarter     3rd quarter        Change
    cost per mile             cost per mile

    NEW ENGLAND
    CT,ME,MA                     46.3 cents      46.8 cents      +.5 cent
    NH,RI,VT

    MID ATLANTIC
    DE,MD,NJ,NY,                 45.4 cents       45.6cents      +.2 cent
    PA,VA,WV

    GREAT LAKES
    IL,IN,MI,                    44.1 cents      44.9 cents      +.8 cent
    OH,WI

    MIDWEST
    IA,KS,MN,MO,                 43.8 cents      43.9 cents      +.1 cent
    NE,ND,SD

    SOUTHEAST
    AL,AR,FL,GA,                 44.0 cents      43.8 cents     - .2 cent
    KY,LA,MS,NC,
    SC,TN

    WEST
    AK,CA,CO,HI,                 45.8 cents      45.9 cents      +.1 cent
    ID,MT,NV,OR,
    UT,WA,WY

    SOUTHWEST
    AZ,NM,OK,TX                  45.1 cents      45.1 cents     unchanged


    NATIONAL
    AVERAGE                      44.8 cents      45.1 cents      +.3 cent

    Note: Calculations are based on 15,000 miles of driving.

    Note:  AAA news releases can be downloaded from the following sites:
AOL -- Keyword:  AAA; Click on "News and Events," "News Releases;" or
 INTERNET -- http://www.aaa.com/news/news.html

SOURCE  American Automobile Association