According to Insurify, the average annual cost of car ownership in the U.S. is $5,851, with full-coverage auto insurance being the largest expense at $2,237. Gasoline costs an average of $2,126, while maintenance and repairs account for $1,488.
This analysis, which incorporates data from AAA and Experian, shows that monthly auto loan payments averaged $765 for new cars and $542 for used cars in the second quarter. The average price for a new car in July was $49,855, and for a used car, it was $27,028, both significantly higher than in July 2019.
Notably, auto insurance has surged by 50% since 2019, largely due to inflation and increased vehicle repair costs associated with advanced technology in newer cars. Julia Taliesin, an economic analyst at Insurify, emphasized that higher repair costs lead to more expensive insurance claims, which insurers incorporate into their rates.
Experts advise potential buyers to consider insurance costs before purchasing a vehicle, as rates can vary widely based on the car's specifics and the buyer's location and driving record. Additionally, gas prices have risen 56% since July 2019, currently averaging $4.29 per gallon, influenced by rising crude oil prices amid geopolitical tensions.
Maintenance costs are also on the rise, with AAA estimating them at 11.04 cents per mile for new vehicles, reflecting a 23.5% increase since 2019. This comprehensive overview of car ownership costs underscores the importance for consumers to factor in these expenses when budgeting for a vehicle