The cost of vehicle ownership is on the rise, up 40.59% since January 2020, according to research from Navy Federal Credit Union.
The average new car now costs more than $50,000, a record. Used car prices have also soared, averaging about $25,000. Gas prices, insurance premiums and maintenance costs have also experienced surge periods in recent years, increasing costs further. The typical U.S. household is now spending about $12,000 a year on their vehicles.
What's driving the shift? Prior to 2020, the cost of car ownership would rise each year in line with inflation. However, pandemic-related supply chain disruptions created shortages of key parts, and manufacturers started focusing on their most expensive and profitable vehicles.
Drivers are increasingly taking on more debt to buy a car: more than 19% of all new car loans have monthly payments of $1,000 or more. Others are keeping their older cars longer or making do with fewer cars than they need.
The slideshow above highlights the 10 most expensive cities for car ownership according to The Zebra.
Photo credit: Africa Studio/Shutterstock
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