Personal Finance News
Survey: Car Ownership Costs 150% More Than Consumers Estimate
According to a new survey, American consumers severely underestimate the average annual costs of car ownership.
About the Synchrony Car Ownership Survey Results:
Synchrony Bank recently released its Cost of Car Ownership survey, based on responses from more than 1,000 adult consumers. What it found was that there’s a significant delta between how much vehicle owners expect to pay each year and how much the average car owner spends.
On average, respondents estimated that it would cost $2,738 per year in expenses to keep a car in roadworthy condition. In reality, however, Synchrony data finds the actual average to be $7,303. That’s a difference of $4,565 — or more than 165% more.
As for what types of expenses make up that total, the largest was gas at $1,956 per year — followed by insurance, with an annual average of $1,730. That’s followed by service and maintenance, which total $1,281 on average. Meanwhile, car washes, and other incidentals such as tolls and parking also added to the annual total.
Looking specifically at maintenance expenses, the average driver spends $622 per year. However, younger adults were found to exceed that average. In fact, Gen Z respondents spent upwards of 50% more ($976) while Millennials saw an annual average of $768. Similarly, the annual average for service and repairs was $659, while Gen Z and Millennials saw totals of $983 and $931, respectively.
Elsewhere, citing Kelley Blue Book, the average sale price of a new car topped $50,000 in 2025. As a result of these rising costs, nearly 60% of those surveyed stated they intended to hold onto their current vehicle for longer rather than purchase a new one.
What They’re Saying:
Commenting on the survey results, Synchrony EVP and CEO of Home and Auto Curtis Howse stated, “The disparity between perceived and actual spending can create real financial strain for drivers who may not be budgeting for the true cost of car ownership. That’s why becoming informed about the full scope of car ownership costs and planning ahead for how to pay for them is essential.”
Howse added, “Access to flexible financing can help ease that affordability burden, allowing drivers to handle routine maintenance and address unexpected repairs without making difficult financial trade-offs.”
My Thoughts:
It should come as no surprise that Synchrony offers a Car Care Credit Card for financing repairs and maintenance — hence their interest in this subject. Nevertheless, these figures are a good reminder that the cost of owning a car goes well beyond your monthly payments and fuel. Moreover, some of these expenses can be unpredictable (such as repairs) while others are likely to rise over time (insurance and registration). For those reasons, before you decide to buy a car, you’ll want to be sure to consider all of the possible expenses and decide whether it makes financial sense for your family.
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