by A new study points to a serious discrepancy between expectations and reality regarding car ownership costs. The main findings are:
The Gap Between Expectations and Reality
Car owners often perceive their vehicles similarly to pets: they plan for “food” and basic care, but don’t account for unexpected “vet visits.” Synchrony’s research confirms this analogy with numbers. Car owners believe they spend about $2,738 annually on upkeep (excluding loan or lease payments), while the actual amount averages $7,303. This means real costs exceed expectations by 167%.
Synchrony’s Cost of Car Ownership survey found owners think they spend about $2,738 annually on upkeep, excluding loan and lease payments. The actual total averages $7,303.
Where Does the Money Go?
The main expense categories are no surprise, but their amounts can be staggering. Even with relatively low fuel prices, it costs an average of $1,956 per year. Insurance adds another $1,730. To this, add maintenance costs ($622), repairs ($659), tires ($377), and accessories ($240). If you factor in smaller expenses for parking, toll roads, and washing, even an economical car starts to “eat” the budget much more actively than planned.
Younger Drivers Bear a Heavier Burden
Representatives of younger generations face particularly high costs. Millennials spend approximately $10,101 per year, and Gen Z representatives spend $9,984. They also spend more monthly on fuel, toll roads, parking, and washing. This may indicate either higher mileage or residence in regions with higher service prices.
A detailed analysis shows that Gen Z spends $976 on maintenance and $983 on repairs, while Millennials spend $768 and $931, respectively. Both figures significantly exceed the overall averages.
Shrinking Household Fleets
The study also recorded a trend towards reducing the number of cars in families. Most respondents (65%) stated they operate only one vehicle, and only 25% have two. These numbers lag behind the 2023 U.S. Census data, according to which 37% of households had two cars, and 22% had three or more. When prices for everything rise, a second car begins to be perceived more as a luxury than a convenience.
Different Methodologies, Same Essence
AAA data, published in a separate report, provides additional context. Their 2025 Your Driving Costs study estimates the average annual cost of owning a new car at $11,577, including items like depreciation and finance charges. This total is more than $4,200 higher than Synchrony’s figure, but Synchrony does not account for loan or lease payments, which for one in five new car buyers can exceed $1,000 per month.
AAA’s 2025 Driving Costs study put average ownership cost for a new vehicle at $11,577 per year, including bigger ticket items like depreciation and finance charges.
Interestingly, despite the high absolute figure, AAA’s indicator (averaging $965 per month) is actually $719 lower than last year.
This data clearly demonstrates that the real cost of car ownership often remains a “blind spot” in the budget of many people. A discrepancy of thousands of dollars can significantly impact financial planning, especially for young people already facing high housing and education costs. The trend of reducing the number of cars in families may be not only a reaction to inflation but also a sign of changing priorities or the development of alternative modes of transport. Regardless of the calculation methodology, the key conclusion remains the need for more realistic and detailed planning of transportation expenses, considering all hidden and variable items, from insurance to unexpected repairs.
