A new study suggests the rising cost of vehicle ownership is being driven less by fluctuating fuel prices and more by what finance technology company Doxo calls the "invisible" fixed costs of car ownership.
The details: Doxo's 2026 U.S. Auto Loan & Auto Insurance Market Spending Reports found that financing and insurance, not fuel, are the primary sources of financial pressure for vehicle owners.
The average U.S. household with automotive obligations now pays a combined median of $595 per month, or $7,140 annually, for auto loans and insurance.
Together, those two categories account for $754 billion of the $5.03 trillion Americans spend annually on household bills.
What they’re saying: “A car loan and an insurance bill are often budgeted separately, but together they make up the true cost of car ownership," said Steve Shivers, Co-Founder and CEO of Doxo, per the press release.
Why it matters: Rising loan and insurance costs continue to pressure vehicle affordability, shaping how consumers shop, finance, and budget for vehicle ownership while increasingly influencing vehicle choice, financing preferences, and demand for lower-payment options.
Between the lines: The financial burden of auto loans and insurance is widespread, with costs varying significantly by market.
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62% of U.S. households carry auto loans, representing a $492 billion annual market, with a median monthly payment of $485, or $5,820 annually.
82% of U.S. households pay for auto insurance, representing a $261 billion annual market, with a median monthly premium of $110, or $1,320 annually.
New Hampshire ranks as the most expensive state for vehicle ownership, with median monthly auto loan and insurance costs totaling $713.
San Jose, California, is the most expensive U.S. city for vehicle ownership, with combined median monthly auto loan and insurance costs reaching $918.
Bottom line: As financing and insurance costs consume a larger share of household budgets, closing the deal will increasingly depend on offering flexible financing solutions, payment-focused sales strategies, and vehicle options (and conversations) that reflect the full cost of ownership.
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