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Synchrony’s new Cost of Car Ownership survey recently revealed drivers are paying nearly 167% more per year than expected to keep their current vehicles on the road. This $4,565 discrepancy between estimated and actual costs could place an additional burden on household budgets and weigh on consumer spending in other categories, according to to the survey.

According to Kelley Blue Book, the average sale price of a new car hit a record $50,080 in 2025. With rising tariffs and broader economic uncertainty adding further pressure, many consumers are rethinking their buying decisions. In a 2024 study, nearly 60% of Americans said they were choosing to keep their vehicles longer to avoid the financial burden of a new purchase.

Synchrony’s Cost of Car Ownership survey found that even those forgoing a new car purchase are still spending more on maintenance and other auto-related expenses than they expect. Excluding loan and lease payments, car owners estimate spending $2,738 annually on their vehicle. However, the survey shows the actual yearly total is $7,303. These figures are even higher for younger drivers, with Millennials and Gen Z spending $10,101 and $9,984 per year, respectively.

“The disparity between perceived and actual spending can create real financial strain for drivers who may not be budgeting for the true cost of car ownership,” said Curtis Howse, EVP & CEO, Home and Auto, Synchrony. “That’s why becoming informed about the full scope of car ownership costs and planning ahead for how to pay for them is essential. Access to flexible financing can help ease that affordability burden, allowing drivers to handle routine maintenance and address unexpected repairs without making difficult financial trade-offs.”

Other key insights from Synchrony’s Cost of Car Ownership survey include:

• Gas and Insurance are the Biggest Contributors to Annual Car Spend: When examining what factors are driving these rising costs, the most significant expenses were gas and insurance, which cost drivers an average of $1,956 and $1,730, respectively, each year. Other top expenses include maintenance ($622) and service/repairs ($659), tires ($377), and auto parts and accessories ($240).
• Multicar Households on the Decline: Increasing vehicle prices and maintenance costs may also be contributing to the decline in multicar homes. According to the research, 65% of respondents report they are responsible for managing only one vehicle in their household, while just 25% manage two cars. These numbers fall below the 2023 U.S. Census, which showed 37% of households had two vehicles and 22% of households owned three cars or more.
• Gen Z and Millennials are the Leading Spenders: Gen Z and Millennials spend the most across all major categories, including car maintenance, where they spend $976 and $768 each year, respectively, compared to the $622 average. The same holds for service and repairs, including transmission replacement and engine work, where Gen Z and Millennials are spending $983 and $931 each, well above the $659 average. Despite these high costs, Gen Z and Millennials continue to get behind the wheel, outspending all others on gas, tolls, parking, and car washes each month.

Synchrony’s Cost of Car Ownership survey was a quantitative online survey of 1,030 consumers aged 18+ from around the United States, fielded in partnership with the Ask Suzy platform, which gathers real-time feedback from the general population. All survey respondents were self-reported to be financially responsible for the general costs and upkeep of at least one passenger vehicle that they owned or leased.