Summary
Car ownership costs in the U.S. have risen sharply since the pandemic, making them harder for many people to afford. This increase is due to more expensive new and used cars, pricier insurance, and rising maintenance costs.
Key Facts
- The average new car price in the U.S. is $50,000, according to Kelley Blue Book.
- Car ownership costs have gone up 40.59% since January 2020, based on Navy Federal Credit Union data.
- A shortage of chips during the pandemic led to a lack of new cars and increased prices.
- New car buyers are often purchasing larger and more feature-packed vehicles.
- Used car prices have also shot up, averaging over $25,000.
- Rising insurance rates and maintenance costs add to the total cost of owning a car.
- More car loans now have monthly payments of $1,000 or more as people take on debt to afford a vehicle.
