A new study finds that consumers delaying a new-car purchase might not be easing the financial burden of owning a vehicle as much as they think.
The details: A survey by the financial service company Synchrony found that while many Americans are putting off buying due to pricing concerns, there’s a wide gap between perceived and actual costs of keeping their current vehicle on the road.
Drivers are paying nearly 167% more per year than expected to maintain their current vehicles.
That represents a $4,565 discrepancy between perceived costs and the actual financial burden of car ownership.
By comparison, a 2025 study by AAA found the average ownership cost for a new vehicle driven 75,000 miles over five years was $11,577 annually, a decrease of $719 compared to the previous year.
Why it matters: This is a messaging and trade-cycle opportunity. If consumers believe “keeping it” is cheaper but are getting hit with higher real-world costs, dealers can reframe the conversation around total cost of ownership, warranty coverage, and predictable monthly expense—especially for shoppers sitting on the fence.
Between the lines: Among the biggest cost drivers, gas and insurance top the list.
Gas costs average $1,956 a year, followed by insurance at about $1,730 annually.
Other top annual expenses include maintenance ($622), service and repairs ($659), tires ($377), and auto parts and accessories ($240).
Gen Z and Millennials spend the most on ownership, including maintenance, at $976 and $768 per year, respectively, compared to the $622 average.
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Digging deeper: Despite spending more to own a vehicle, Gen Z and Millennials are still eager to take the wheel, outspending all other demographics on other costs tied to ownership—underscoring their significance in the market.
Millennials and Gen Z spend $207 and $193 monthly, respectively, on gas, compared to the $163 average.
They spend $34 (Millennials) and $29 (Gen Z) monthly on tolls, while the average across the board is $19.
Gen Z and Millennials’ monthly parking spend is $32 and $34, respectively, compared to the $20 average.
Their monthly spend on car washes is $36 (Gen Z) and $46 (Millennials), with the average for all owners being $30.
Bottom line: Delaying a purchase can feel like saving money, but the ownership math may say otherwise. Dealers that quantify the “keep vs. trade” gap, using service history, insurance and fuel realities, and warranty value, can turn rising maintenance and repair pain into earlier trade-ins and more confident purchase decisions.
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