{"id":4521,"date":"2026-11-05T04:36:59","date_gmt":"2026-11-05T04:36:59","guid":{"rendered":"https:\/\/www.way.com\/business\/insights\/\/"},"modified":"2026-11-05T10:34:42","modified_gmt":"2026-11-05T10:34:42","slug":"cost-of-owning-a-car","status":"publish","type":"insights","link":"https:\/\/www.way.com\/business\/insights\/car-ownership\/cost-of-owning-a-car\/","title":{"rendered":"What Americans really spend on their cars each year"},"content":{"rendered":"

That ad about the newest car model seems pretty tempting, doesn\u2019t it? It might even make you feel like it\u2019s time to trade in your old car for a new, shinier one. Before you do, quick question. Without looking anything up, do you know how much you spend on your car each year? \u00a0 <\/span>\u00a0<\/span><\/p>\n

If the number\u00a0that comes to your mind\u00a0is\u00a0your car payment, you\u00a0might\u00a0be surprised to find out that it\u2019s only part of what a car costs you. \u00a0 <\/span>\u00a0<\/span><\/p>\n

Kelly Blue Book<\/a> says the average five-year cost to own for new vehicles is $80,238, which comes to about $16,000 a year.<\/p>\n

These estimates also don\u2019t fully capture how sharply gas prices have climbed this year.<\/span>\u00a0<\/span><\/p>\n

What you pay before you even leave the dealership <\/span><\/b>\u00a0<\/span><\/h2>\n

The average new car price set a record in December 2025 at $50,614,<\/a><\/span>\u00a0according to Kelley Blue Book. That\u2019s not all you\u2019ll end up paying. There are a few extra costs that don\u2019t always get much attention in car ads. <\/span>\u00a0<\/span><\/p>\n

Let\u2019s start with the <\/span>sales tax<\/a>. Rates vary a lot from state to state. In Texas, the sales tax is 6.25%, which comes to around $3,160 on the average new car. Delaware, Montana, New Hampshire, and Oregon don\u2019t have a state sales tax, and neither does Alaska, though some Alaska localities charge their own. <\/span>\u00a0<\/span><\/p>\n

Dealers also charge a documentation fee for processing the paperwork. <\/span>CarEdge<\/a>, a car-buying advice company that has analyzed verified quotes from more than 23,000 dealers, puts the national average at $472.<\/span>\u00a0<\/span><\/p>\n

If you aren\u2019t paying in cash, you also have the loan to think about. <\/span>Edmunds<\/a> reported that the average monthly payment for a new car was $777 between April and June 2026. The average buyer\u00a0pays\u00a0about $9,811 in interest over the\u00a0life of the\u00a0loan.<\/span>\u00a0<\/span><\/p>\n

The cost you never actually see <\/span><\/b>\u00a0<\/span><\/h2>\n

Did you know your car loses its value just by existing? It\u2019s called depreciation. According to Kelley Blue Book,<\/a> the depreciation in year one is $7,200. On average, over the first two years, the depreciation rate for new cars is about 30%. They continue to depreciate 8-12% each year after.\u00a0<\/span><\/p>\n

You won\u2019t feel it day to day, but you\u2019ll certainly notice it when you try to sell your car. <\/span><\/p>\n

Driving less doesn\u2019t necessarily make your car cheaper to own. If you drive fewer miles, the per-mile cost goes up, because fixed costs like insurance and depreciation don\u2019t go away, even when your car sits collecting dust in your garage.<\/span>\u00a0<\/span><\/p>\n

Gas prices have surged year over year<\/span><\/b>\u00a0<\/span><\/h2>\n

According to <\/span>LendingTree<\/a>, gas prices have gone up 39%, while diesel soared by 72%.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

Does it matter where you fill up? Absolutely. <\/span>\u00a0<\/span><\/p>\n

As of November 2, 2026<\/a>, the price of regular gas is $5.29 per gallon and $7.27 for diesel in the West Coast. On the other hand, in the East Coast, the price of regular gas is $3.93 per gallon and for diesel, it’s $6.02.<\/p>\n

That means the difference between the West Coast and East Coast is $1.36 per gallon for regular gas and $1.25 for diesel.<\/span>\u00a0<\/span><\/p>\n

Note: EIA updates its gas prices weekly.\u00a0<\/span><\/i><\/p>\n

Repair prices aren\u2019t getting any cheaper either <\/span><\/b>\u00a0<\/span><\/h2>\n

When you own a car, repairs are pretty normal. But how much do you actually spend to get something fixed? <\/span>\u00a0<\/span><\/p>\n

Kelley Blue Book<\/a>, using repair orders collected across the country, puts the average repair bill at $838. Of course, the actual cost depends on what\u2019s wrong with your car and which parts need replacing. <\/span>\u00a0<\/span><\/p>\n

Here are a few examples of <\/span>what common repairs can cost<\/a>: <\/span>\u00a0<\/span><\/p>\n