The sticker price alone of a car can feel like a lot. But the cost of having your own set of wheels does not stop there. If you’re trying to figure out how car ownership can fit into your budget, you will also need to factor in the myriad of maintenance and upkeep costs involved. And these costs keep on climbing.
From January 2020 to August 2025, “ownership costs surged by 41%,” said Kiplinger, citing an index from Navy Federal Credit Union. A variety of factors are to blame, including “steep increases in auto insurance premiums following the Covid-19 pandemic” and rising costs for auto repairs, in part because “tariffs of 25% on imported car parts are driving up repair costs.”
While there is not much individual drivers can do to change these factors, there are steps you can take to make the cost of car ownership feel a bit more manageable.
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1. Research before you buy
Competitive pricing is top of mind for many Americans when they are evaluating car brands, said YouGov, citing its recent The Road Ahead: U.S. next-gen car outlook 2025. But sticker price alone can be misleading, which is why it’s important to broaden your considerations when buying a car.
Given how costly filling up the tank can be, “picking a vehicle with solid fuel economy rather than a gas guzzler could save you hundreds of dollars a year,” said Kiplinger. Similarly, weighing the “reliability ratings of car brands can help you determine the likelihood of a car needing frequent repairs.”
2. Keep up with routine maintenance
While it may feel like yet another item on your miles-long to-do list, staying on top of car maintenance tasks like getting your oil changed or your brakes inspected can go a long way toward avoiding a steep surprise bill later. “If you miss scheduled maintenance, you can wind up spending more than you need to on avoidable repairs or void your car’s warranty,” said GoBankingRates, a personal finance website.
Set reminders or plan to check in on your vehicle on a monthly basis. If you do end up needing a repair, “this can help you plan ahead, research auto shops and get the best quote for the work you need to have done,” said NerdWallet.
3. Find the best rate on auto insurance
Given the rapid rate at which insurance rates have increased post-pandemic, it is worth checking to ensure you are actually getting the best deal, especially if you have a great driving record. One way to get a better rate may be to switch providers — it is actually recommended that you “call around and compare quotes from auto insurance companies at least once per year,” said Experian.
But you might be able to score savings by staying with the same insurer, too. For instance, some insurance companies offer discounts if you take a defensive driving course or bundle your other insurance policies, such as homeowners, with them.
