Between gas, insurance, maintenance and your monthly car note, ownership is costly.
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- The true cost of car ownership includes monthly payments, fuel, insurance and maintenance.
- Annual ownership costs for a new vehicle can exceed $11,570.
- Brands like Toyota, Hyundai and Buick are often among the cheapest to own and maintain over time.
Whether you lease or finance a vehicle, you can still pay over $500 a month in ownership costs.
The true costs of car ownership are astonishingly high when you calculate fuel, insurance, maintenance costs and other car-related expenses. Average annual ownership costs vary depending on the type of vehicle you own, gas prices in your home state and more.
Here’s what American drivers can expect to spend on car ownership.
Monthly car payments account for large percentage of ownership costs
The average car lease payment in 2025 was around $596 a month, says NerdWallet. Average new car payments were as high as $748 in Q3 of 2025. Used cars have the lowest monthly average car payments, coming in at $532 a month.
| Average Monthly Cost (in 2025) | |
| Used Car Payment | $532 |
| Car Leasing Payment | $596 |
| New Car Financing Payment | $748 |
Monthly car payments may account for a large percentage of monthly and annual vehicle ownership costs, but they’re far from the only expense motorists encounter. According to NerdWallet, the average annual new vehicle ownership cost is upwards of $11,570 for a new vehicle driven 75K miles. These costs could increase in 2026 due to car and fuel price fluctuations.
What are the major car ownership costs in 2026?
There are four major costs of car ownership in 2026 aside from depreciation costs.
Major car ownership costs
- Monthly financing or leasing payments
- Fuel costs
- Auto insurance
- Maintenance costs
Ownership costs vary but cheap, reliable cars, trucks and SUVs tend to have the most affordable overall ownership costs since they are cheaper to refuel, insure and maintain. Large luxury SUVs and electric vehicles tend to have higher ownership costs.
If you’re a budget-conscious car buyer, search for reliable hybrid vehicles that have strong value propositions. There are several popular hybrid cars and SUVs with remarkably low annual ownership costs.
What are some of the cheapest car brands to own?
Consumer Reports lists Buick, Lincoln, Toyota, Hyundai and Tesla as brands with the lowest total ten-year costs of maintenance, respectively. Lexus, Toyota and Subaru make the most reliable new cars according to a 2025 Consumer Reports ranking list.
Reliable cars that are fuel efficient and affordable to insure are the most affordable for drivers. The question is, should you finance, lease or buy used when looking for your next vehicle?
Should you finance new, lease or buy a used car in 2026?
Buying a used car has the lowest average monthly cost, based on data from NerdWallet. Buying a brand-new car is the least affordable option and the owner endures extreme depreciation within the first few years. The sweet spot for most drivers on the road today is purchasing a reliable, gently used car model.
Used cars that haven’t accumulated more than 36,000 to 50,000 miles are typically three to five years old, making them solid used options. If you want the experience of driving a brand-new car without dealing with the commitment or long-term depreciation of ownership, leasing is a good alternative to buying used or new.
The greatest determining factor of your average annual ownership cost is which vehicle you choose. USA TODAY Cars provides vehicle reviews and buying guides for the latest and greatest new vehicles on the market.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.