There are high costs to owning a car, including gas, insurance, maintenance, and monthly car payments.
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- The actual cost of owning a car includes monthly payments, fuel, insurance, and maintenance.
- The annual cost of owning a new car can exceed $11,570.
- Brands like Toyota, Hyundai, and Buick are often among the cheapest brands to own and maintain over time.
Whether you lease or finance your car, you can potentially pay more than $500 a month in ownership costs.
When you factor in fuel, insurance, maintenance costs, and other car-related expenses, the real cost of owning a car can be surprisingly high. The average annual cost of ownership varies depending on the type of car you own, gas prices in your state, and more.
Here’s how much American drivers can expect to spend on car ownership.
Monthly car payments make up the majority of ownership costs
According to NerdWallet, the average car lease payment in 2025 was about $596 per month. The average payment for a new car in Q3 2025 reached $748. Used cars had the lowest average monthly payments, with an average monthly payment of $532.
| Average monthly cost (2025) | |
| Used car payment | $532 |
| car lease payment | $596 |
| New car loan payment | $748 |
Your monthly car payment can make up a large portion of your monthly and annual vehicle ownership costs, but it’s not the only expense drivers face. According to NerdWallet, the average annual cost of owning a new car is more than $11,570 for a new car with 75,000 miles. These costs are likely to increase in 2026 due to changes in vehicle and fuel prices.
What are the main costs of car ownership in 2026?
There are four main costs to owning a car in 2026, other than depreciation.
Main costs of car ownership
- Monthly financing or lease payments
- fuel cost
- car insurance
- maintenance cost
Costs of ownership vary, but cheap and reliable cars, trucks, and SUVs tend to have the most affordable overall cost of ownership due to lower fueling, insurance, and maintenance costs. Larger luxury SUVs and electric vehicles tend to have higher ownership costs.
If you’re a budget-conscious car buyer, look for a reliable hybrid vehicle with a strong value proposition. There are several popular hybrid cars and SUVs that have significantly lower annual ownership costs.
What is the cheapest car brand to own?
Consumer Reports lists Buick, Lincoln, Toyota, Hyundai, and Tesla as having the lowest total maintenance costs over a 10-year period, respectively. Lexus, Toyota, and Subaru make the most reliable new cars, according to the 2025 Consumer Reports ranking list.
Reliable cars that are fuel efficient and have affordable insurance premiums are the most affordable for drivers. The question is, should you finance, lease, or buy a used car when looking for your next car?
Should you finance, lease, or buy a used car in 2026?
Based on NerdWallet data, buying a used car has the lowest average monthly cost. Purchasing a new car is not the most affordable option, and owners will endure extreme depreciation in the first few years. The best bet for most drivers on the road today is to purchase a vehicle that is reliable and used frequently.
Used cars with no more than 36,000 to 50,000 miles are usually 3 to 5 years old, so they’re a solid choice for a used car. If you want the experience of driving a truly new car without dealing with the long-term depreciation of a contract or ownership, leasing is a better option than buying a used or new car.
The biggest factor in determining your average annual cost of ownership is which vehicle you choose. USA TODAY Cars provides vehicle reviews and buying guides for the latest and greatest new cars on the market.
