Nearly 40% of Americans said owning a car has become too expensive [1], [2].
This shift in affordability impacts millions of households that rely on vehicles for employment and essential services. As basic transportation costs outpace income growth, a growing segment of the population views car ownership as a luxury rather than a utility.
Financial strain is driven by a combination of rising vehicle purchase prices, insurance premiums, fuel, and maintenance costs [3]. The average transaction price for a new car reached $48,422 in April 2025 [4]. This high entry cost is compounded by ongoing operational expenses that erode monthly budgets.
Recent data indicates that annual ownership costs for a new vehicle can exceed $11,570 [5]. These expenses include not only the monthly loan or lease payment, but also the rising cost of keeping a vehicle on the road. For many drivers, the total cost of ownership could reach nearly $1,000 per month in 2026 [5].
These figures reflect a broader trend where the cost of mobility is becoming a significant financial burden. The combination of higher interest rates and inflated vehicle prices has made it difficult for low- and middle-income earners to maintain reliable transportation without sacrificing other necessities.
The trend toward unaffordability is evident across both new and used markets. While used cars often provide a cheaper alternative, the overall trajectory of insurance and maintenance continues to climb, adding pressure to the total cost of ownership for all drivers.
“Nearly 40% of Americans said owning a car is too expensive”
The transition of car ownership from a standard utility to a luxury expense suggests a systemic gap between wage growth and the cost of essential infrastructure. As transportation becomes less accessible, this may drive increased demand for public transit or alternative mobility solutions in U.S. cities, while further isolating rural populations who lack those options.
