The overall cost of car ownership continues to rise, with drivers now spending an average of $5,851 a year to keep their vehicles on the road.
What we know: The surge, which comes as vehicle prices remain elevated, is being driven by three major factors—auto insurance, gas, and maintenance and repair costs, according to CNBC.
By the numbers…
The cost of auto insurance has jumped 50% since 2019, according to data from the Bureau of Labor Statistics through July.
Gas prices are now 55% higher than in 2019, according to AAA data, as the lingering conflict in Iran puts more pressure on fuel costs.
AAA estimates that maintenance and repair costs in 2025 were about 23.5% higher than six years earlier.
Why it matters: Rising ownership costs add another layer to vehicle affordability beyond the purchase price and monthly payment, giving dealers more reason to focus on the total cost of ownership as consumers weigh whether to buy, what vehicle they can afford, and how long to keep their current car.
Between the lines: The growing amount of technology in vehicles is a main factor contributing to higher insurance and repair costs as automakers aim to meet the needs of increasingly tech-savvy car buyers.
In J.D. Power’s 2026 Initial Quality Study, infotainment systems averaged 44.4 problems per 100 vehicles (PP100) in the mass-market segment and 38.3 PP100 in the premium segment.
The costs associated with repairing tech-heavy vehicles come in many forms, with many repairs requiring service shops to maintain automaker-specific software subscriptions that can cost thousands of dollars a year, according to The Detroit News.
For example, the Auto Care Association says Tesla charges $3,188 annually for access to its software systems for vehicle repairs, compared with $2,500 for Ford and $1,200 for GM.
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What they’re saying: “Newer vehicles have more sophisticated electronics and systems, making them more expensive to repair than simpler vehicles from years past,” said Julia Taliesin, economic analyst at Insurify, per CNBC. “Higher repair costs mean more expensive insurance claims, which insurers factor into their rates.”
Bottom line: Vehicle affordability is increasingly about more than the sticker price, with insurance, fuel and repair expenses putting additional pressure on consumers after the sale.
For dealers, rising ownership costs could influence everything from vehicle selection and trade cycles to service decisions, making the broader cost of keeping a car on the road an increasingly important part of the customer equation.
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