Written by Liane Yvkoff
Published Jul 16, 2026 | 8 minute read
Key Takeaways:
You budget for your car payment. You expect to pay for gas. You might even factor in insurance.
But then something unexpected happens—a warning light flashes, a strange noise starts or a routine service visit turns into a much bigger repair.
For many drivers, that’s when the real cost of car ownership becomes clear.
According to Synchrony’s Cost of Car Ownership survey, most drivers significantly underestimate what it actually costs to keep a car on the road. And that gap can leave them unprepared when expenses inevitably show up.
The good news: With a better understanding of where the money goes—and a little planning—you can stay ahead of the curve.
Most drivers don’t realize how far off their estimates really are until they look at the full picture.
On average, drivers estimate spending $2,738 per year beyond their loan or lease payments, according to the Synchrony survey. The reality? The costs of gas, insurance, maintenance and the like add up to $7,303 annually. That’s a difference of $4,565.
“People tend to focus on the obvious, recurring costs like their monthly payment or insurance,” says Patrice Boone, Chief Marketing Officer of Home & Auto at Synchrony. “But it’s the less visible expenses—like maintenance, repairs and emergency issues—that really catch people off guard.”
And those unpredictable costs tend to show up at the worst possible times: before a trip, during a busy week or when budgets are already stretched.
Even if your car is fully paid off, it’s far from free.
Fuel and insurance make up the largest share of annual spending for most drivers, according to Synchrony’s survey. But that’s only part of the story. Maintenance, repairs and day-to-day expenses can collectively rival those core costs over time.
Surveyed drivers report spending an average of $1,956 a year on fuel, but many don’t fully account for how much that number can fluctuate depending on driving habits and gas prices.
Maintenance, service and repair costs vary depending on the car model, age and how it’s driven, but on average, people are paying $1,281 each year to keep their cars road ready.
Tires typically last several years, but they still require regular upkeep and eventual replacement. On average, drivers spend about $377 per year on tire-related costs.
Then there’s the miscellaneous car-related investments, such as tinting windows or replacing worn floor mats to keep your car looking fresh. These may be small, one-time purchases, but such parts and accessories still amount to about $240 per year.
READ MORE: 10 Ways to Make Your Tires Last Longer and Save Money
It’s not just the big expenses that matter, but also the ones that don’t feel like “car costs” at all.
Tolls, parking, car washes, subscription services and even convenience purchases during trips quietly inflate your total spend. A few dollars here and there might not seem like much in the moment, but over the course of a year, they can amount to hundreds—or even thousands—of dollars.
There are also costs tied to how and where you drive. Urban drivers, for example, tend to spend more on parking and insurance, while rural drivers may rack up higher fuel and maintenance costs due to longer distances and road conditions.
“Many of these expenses aren’t truly unexpected; they’re just not tracked,” says Boone. “And when you’re not tracking them, it’s easy to underestimate how much they’re adding up.”
READ MORE: 5 Tips to Prepare Your Car for a Road Trip
One of the biggest challenges in managing car ownership costs is that repair pricing isn’t standardized.
The same repair can vary widely depending on:
Dealerships often charge more due to higher labor rates and manufacturer-specific parts (also known as original manufacturer parts or factory parts), while independent shops may offer lower prices but with different payment structures for parts or services.
And then there’s timing. A repair caught early might cost a few hundred dollars. The same issue, left unresolved, can quickly spiral into a four-figure bill.
Most major repairs don’t start as major problems,” says Keith Mait, Senior Vice President and Auto Leader at Synchrony Car Care. “They start small, and when they’re ignored, that’s when costs really begin to escalate.
READ MORE: 6 Benefits of Using a Credit Card for Auto Repairs
Cars also don’t cost the same amount to own over their lifetime.
In the early years of ownership, costs are relatively predictable: routine maintenance, lower repair frequency and, in some cases, warranty coverage. But as vehicles age, that predictability fades.
And caught between skyrocketing new automobile prices and inflation, owners are holding on to their cars longer than previous generations.
A recent Kelley Blue Book analysis found that drivers keep their vehicles for an average of 12.8 years, compared to six years in 2012 for a vehicle that was purchased new.
After about 75,000 to 100,000 miles, repair frequency tends to increase, and costs become less consistent. Components like brakes, batteries, suspension systems and transmission begin to wear out.
At the same time, vehicles are becoming more technologically advanced, which can increase both the likelihood of repairs and the cost of those repairs.
“Modern vehicles are more capable than ever, but they’re also more complex,” says Mait. “That complexity can make repairs more expensive, especially as cars get older.”
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Unlike rent or a car payment, maintenance and repair expenses don’t arrive on a regular schedule. They’re tied to usage, wear and environmental factors, which make them harder to anticipate.
Service schedules also vary widely by vehicle. Some maintenance is based on mileage, while other services are time-based, making it difficult to track everything consistently.
Even routine services differ between make and models as well as your driving conditions. For example, some vehicles may need major service as early as 40,000 miles, but others push those same services closer to 60,000 miles or beyond.
Add in busy schedules—work, school drop-offs, long commutes—and staying on top of maintenance can quickly become overwhelming. With multiple vehicles, the time and effort required can start to feel like a full-time job.
READ MORE: Car Care Tips Inside and Out
While you can’t forecast every repair, you can prepare.
“A smarter approach to car ownership includes both maintenance planning and financial planning,” says Boone.
Start by:
“Even a small amount, like $50 to $100 per month, can create a meaningful emergency fund over time,” Boone says. “The goal is to make sure unexpected costs don’t derail your budget when they happen.”
READ MORE: Car Maintenance Checklist: Monthly to Annual Service Guide
When an issue or big repair does come up, what to do isn’t always straightforward. Instead of asking, “Can I afford this?”, it’s more useful to consider:
“If your vehicle has been reliable and the repair is isolated, fixing it may make sense,” says Mait. “But if costs are stacking up or approaching a significant percentage of the car’s value, it may be time to reassess.”
Many vehicles come with warranties that cover routine maintenance for a limited time—things like oil changes, air filter replacements and basic inspections. But most major repairs, like replacing a battery, brakes or transmission components, are not included.
When those costs arise, there are several ways to manage them:
“The key is to have a plan before the expense happens,” says Boone. “When people have options, they tend to make better decisions. It’s when they feel pressured or unprepared that they’re more likely to make choices that don’t serve them long-term.”
READ MORE: How to Pay for Auto Repairs: 8 Options Compared
Car ownership isn’t just about getting from point A to point B. It’s about managing an evolving set of costs over time.
And while those costs may be higher than many drivers expect, they don’t have to be unpredictable.
“With a clearer understanding of where your money goes, a proactive maintenance strategy and a plan for handling the unexpected, you can take control of your car and your budget,” says Mait.
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What costs increase the most as a car gets older?
As vehicles age, repair costs tend to rise—especially for major components like brakes, suspension systems, batteries and transmissions. Maintenance may also become more frequent, and expenses can become less predictable over time.
Is there a “best time” to sell or trade in a car?
Many drivers start to reassess before repair costs become more frequent—often around the 75,000 to 100,000-mile mark. If your car is still running well but begins to need more frequent upkeep, it may be a good time to weigh the cost of keeping it versus replacing it.
Do electric vehicles cost less to maintain?
Electric vehicles generally have fewer moving parts and don’t require oil changes, which can reduce routine maintenance costs. However, they can still have higher upfront costs and may require specialized repairs, particularly when it comes to battery systems.
What’s one simple way to reduce long-term car costs?
Stay consistent with routine maintenance. Small, regular services—like oil changes, tire rotations and brake pad replacement—can help prevent larger, more expensive repairs and extend the life of your vehicle.
Liane Yvkoff is an automotive technology and lifestyle writer. Her work has appeared in The Drive, CNET, Popular Mechanics, and Road and Track, and she’s a former contributor to Forbes’ transportation column.