Car Ownership Costs Surge 50 Percent Since 2020
Repair expenses have jumped 70 percent, outpacing fuel price increases for American drivers.
Car ownership costs have risen 50 percent since 2020. Repair expenses led this increase, surging 70 percent over the same five-year period. This trend challenges the common assumption that fuel is the primary financial burden for motorists. The data comes from Navy Federal Credit Union and is reported by GN auto markets/energy: gasoline prices.
Heather Long, chief economist at Navy Federal Credit Union, identified rising repair bills as the main driver. She noted that these hidden costs often exceed fuel expenditures for many vehicle owners. The financial impact extends beyond the pump to daily maintenance and unexpected fixes.
Repair bills drive ownership costs higher
The average repair cost for a new car over its first five years is $1,750. AAA data supports this figure, highlighting the steady climb in maintenance expenses. Modern vehicles contain more electronic parts and sensors, which are costly to fix.
A shortage of qualified mechanics allows providers to raise their rates. Long observed that skilled technicians can now set their own prices. This labor scarcity contributes directly to the 70 percent increase in repair costs.
Insurance and fleet age add pressure
Auto insurance rates have climbed to $2,124 per year for full coverage in 2026. Minimum coverage costs average $816 annually, according to LendingTree. These premiums form a significant portion of total annual vehicle expenses.
The average age of passenger cars in the US reached 14.5 years in 2025. Older vehicles require more frequent and expensive service. This aging fleet dynamics further inflates the overall cost of car ownership.
Fuel prices rise alongside other costs
The average gasoline price is $4.33 per gallon. This represents a 45 percent increase since late February. The price jump is attributed to the conflict in Iran.
The total annual cost to own and operate a new vehicle is $12,863. This breaks down to $1,071.92 per month. Fuel is only one component of this broader financial load.
