A bandaged piggy bank sits next to a pile of toppled blocks. Even with rising fuel costs, traditionally fueled vehicles remain the top choice for consumers, with 70% of those surveyed reporting they plan to purchase or lease a gas or diesel-powered vehicle in the future. (Credit: narawit/Adobe Stock)

Around a quarter of vehicle owners in the United States say expenses related to their vehicle make up a significant portion of their monthly budget, according to NerdWallet’s 2023 Auto Buying and Insurance Report. The report showed the average monthly cost of vehicle ownership (including payments, upkeep, gas and insurance) is $556, which amounts to 12% of the average monthly household income of $4,537.

Younger consumers are seeing the highest auto expenses, with average vehicle costs coming in at $921 a month for those in Gen Z and $821 a month for Millennials. Meanwhile, Baby Boomers average $308 per month in car expenses and GenXers average $433. NerdWallet’s survey also found 20% of Gen Z and 18% of Millennial vehicle owners – compared to 6% of Gen Xers and 3% of Baby Boomers – spend over $1,000 each month to keep things rolling.

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Brittney Meredith-Miller

Brittney Meredith-Miller is assistant editor of PropertyCasualty360.com. She can be reached at [email protected]

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