Survey: Drivers pay nearly 167% more annually than expected for vehicle ownership

Consumers are spending more on maintenance and other auto-related expenses as cost of ownership is underestimated by over $4,500

Stamford, Conn.—Synchrony’s new Cost of Car Ownership survey reveals drivers are paying nearly 167% more per year than expected to keep their current vehicles on the road, representing a $4,565 discrepancy between estimated and actual costs.

According to Kelley Blue Book, the average sale price of a new car hit a record $50,080 in 2025. With rising tariffs and broader economic uncertainty adding further pressure, many consumers are rethinking their buying decisions. In a 2024 study, nearly 60% of Americans said they were choosing to keep their vehicles longer to avoid the financial burden of a new purchase.

Synchrony’s survey found that those forgoing a new car purchase are still spending more on maintenance and other auto-related expenses than they expect. Excluding loan and lease payments, car owners estimate spending $2,738 annually on their vehicle.

However, the survey shows the actual yearly total is $7,303. These figures are higher for younger drivers, with Millennials and Gen Z spending $10,101 and $9,984 per year, respectively.

Survey Highlights

Gas and Insurance are the Biggest Contributors

When examining what factors are driving these rising costs, the most significant expenses were gas and insurance, which cost drivers an average of $1,956 and $1,730, respectively, each year. Other top expenses include maintenance ($622) and service/repairs ($659), tires ($377), and auto parts and accessories ($240).

Multi-Car Households on the Decline

Increasing vehicle prices and maintenance costs may also be contributing to the decline in multi-car homes. According to the research, 65% of respondents report they are responsible for managing only one vehicle in their household, while just 25% manage two cars. These numbers fall below the 2023 U.S. Census, which showed 37% of households had two vehicles and 22% of households owned three cars or more.

Gen Z and Millennials are the Leading Spenders

Gen Z and Millennials spend the most across all major categories, including car maintenance, where they spend $976 and $768 each year, respectively, compared to the $622 average. The same holds for service and repairs, including transmission replacement and engine work, where Gen Z and Millennials are spending $983 and $931 each, well above the $659 average.

Despite these high costs, Gen Z and Millennials continue to get behind the wheel, outspending all others on gas, tolls, parking, and car washes each month: