Americans are facing increased costs in car ownership, driven not just by rising fuel prices due to the war with Iran, but also by soaring repair and insurance expenses. According to Heather Long, a chief economist at Navy Federal Credit Union, car ownership costs have surged 50% since 2020, with repair costs alone jumping 70% over the past five years. These repairs, averaging $1,750 for a new car in the first five years, are compounded by higher insurance rates and maintenance costs. The average annual cost for full car insurance is now $2,124. As people keep their cars longer, the average vehicle age in the U.S. has reached 14.5 years, leading to more expensive repairs due to advanced electronic components. Meanwhile, gas prices have risen 45% since the conflict began, with the average cost at $4.33 per gallon. Overall, owning and operating a new vehicle costs about $12,863 annually.
QUESTION: How might the rising costs of car ownership influence the future of transportation and the choices people make about how they travel?
Own a car? You’re getting socked by higher prices, and not only for gas
