A new survey finds that driver's aren't great at estimating the true cost of car ownership. This takes into account things like vehicle-related fuel and repair costs, insurance costs and maintenance costs like new tires. So just far off the mark are drivers? A lot, according to the survey recently shared by financial services company Synchrony. It finds that drivers are underestimating the annual cost of car ownership by more than $4,500.
Synchrony's research indicates that annual vehicle expenses are being underestimated by drivers by an average of $4,565 and that the true cost of owning a vehicle today is about 167 percent higher than many drivers expect.
Here are some more survey stats:
- Drivers estimate they spend about $2,738 annually on vehicle-related expenses when loan or lease payments are excluded.
- In reality, the average annual cost totals approximately $7,303 once routine ownership costs are factored in.
Synchrony says the gap between perceived and actual spending can create financial pressure for many households that are not fully budgeting for the real cost of keeping a vehicle on the road.
“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,” Curtis Howse, executive vice president and CEO of Home and Auto at Synchrony, said in a statement announcing the survey results.
Rising vehicle prices are one reason many Americans are focusing more closely on the long-term cost of ownership. The report cited Kelley Blue Book data showing the average new-vehicle price reached $50,080 in 2025, a figure that has remained near record highs.
As a result, many consumers are choosing to keep their current vehicles longer rather than replacing them with new models. However, keeping a vehicle longer does not necessarily reduce ownership costs. Older vehicles typically require more maintenance and repairs, and everyday operating expenses such as fuel and insurance continue to increase.
Largest Annual Car Ownership Expenses
Fuel
According to the Synchrony survey, gasoline is the largest annual expense for many drivers, averaging about $1,956 per year. Insurance costs are the second-largest expense, averaging about $1,730 annually.
Routine maintenance
Routine maintenance also represents a significant cost. The survey found drivers spend an average of $622 per year on maintenance services such as oil changes and inspections, while repairs average about $659 annually.
Tires
Tires represent another notable expense, averaging about $377 per year. Drivers also reported spending roughly $240 annually on replacement parts and vehicle accessories.
While these costs individually may not seem overwhelming, they quickly add up over the course of a year.
Other Expenses
Smaller everyday expenses also contribute to the total cost of vehicle ownership. Parking fees, tolls, car washes and other routine expenses can increase annual spending even further, particularly for drivers who commute regularly or live in urban areas.
Younger VS Older Drivers
The survey also found that younger drivers tend to spend more on vehicle ownership than older generations. Millennials reported spending an average of $10,101 per year on vehicle ownership, while Generation Z drivers reported annual costs of approximately $9,984. Both groups reported higher spending on fuel, parking, tolls and other day-to-day driving expenses than the overall survey average.
In addition to higher spending, the research suggests that many households are managing fewer vehicles than in the past. According to the survey, 65 percent of respondents said they are responsible for maintaining one vehicle in their household. Another 25 percent reported managing two vehicles.
Those figures are lower than U.S. Census data from 2023, which showed that 37 percent of households owned two vehicles and 22 percent owned three or more vehicles.
About the Survey
Synchrony says it conducted the survey online among 1,030 U.S. adults who said they were financially responsible for maintaining at least one vehicle they owned or leased. The research was conducted in partnership with consumer research platform Ask Suzy.
The findings highlight how important it is for drivers to understand the full financial impact of vehicle ownership.
As Americans continue holding on to their vehicles longer and operating costs rise, better awareness of the real costs associated with fuel, insurance, maintenance and repairs could help consumers plan their budgets more accurately and avoid unexpected financial surprises tied to vehicle ownership.
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