HIDDEN costs are draining the bank accounts of car owners across the country – with motorists in one state paying nearly $700 extra a month.
In recent years, cars sold at new or used dealerships have seemingly become much more expensive.
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And it’s not just rising sticker prices either, as owning a car today means paying $12,297 a year on average or $1,024.71 a month, according to a 2024 AAA study.
Ownership includes much more than just the car itself, with plenty of fixed and variable costs added in.
Regardless of mileage, every motorist typically pays the same for insurance, license, registration, taxes, and finance fees, while variable costs will increase the more you use your car – including fuel, maintenance, and tolls.
What’s more, these prices fluctuate from state to state – just like any other cost of living price.
It’s the hidden costs – such as gas, repairs, insurance – that put the most burden on car owners in Georgia, at an average of $687 a month.
For potential car owners in the likes of Alaska, Delaware, Montana, Oregon, and New Hampshire, there is no sales tax on cars in their state, and the latter has the least hidden costs in the nation.
California has the highest per-gallon rate for gas, at around $4.66 as of July 2024, according to Bankrate.
When the total annual miles driven and tanks emptied are calculated, it’s actually those in Indiana that shell out the most for fuel – around $2,913 annually.
What’s more, a rise in extreme weather events, car crash fatalities, and supply chain shortages has meant insurance rates have risen nearly everywhere.
Despite the rising costs, many people – especially those forced to commute long distances to work or because they live in rural areas – have no other option but to use their cars daily.
Indeed, four or five Americans claiming they have no choice but to drive as much as they do, according to Data for Progress.
Data also suggested the average American spends 20% of their monthly income on car-related costs.
A worrying 16% have to take on a second job just to afford payments, according to a survey of 1,000 drivers by MarketWatch Guides.
The same study also revealed that nearly one in six drivers had to delay maintenance due to finances.
This comes as industry experts recently warned consumers that President Trump’s tariffs risk driving up the prices of cars across the US by as much as $12,000.
In turn, that will see motorists forced to foot the bill as the cost to build an average crossover vehicle could rise by at least $4,000.
But it could increase by as much as three times that amount for an EV, as revealed by a new study from Anderson Economic Group.
Even before Trump’s tariffs, sticker prices on multiple types of vehicles were approaching $50,000 on average—a rise of more than 20% from five years ago.
It has led to consumer confidence falling to a four-year low after fears rose over the impact of his import taxes.
Elsewhere, drivers have been warned to be extra cautious when out on the roads at the weekend – as a surge in fatal accidents is often seen around St. Patrick’s Day.
Major cities such as New York City are preparing for parades, parties, and pub crawls, with those celebrating across the country urged to celebrate responsibly.
How to avoid being scammed at the repair shop
Motorautocar and the AARP have east-to-follow tips to avoid being scammed by a repair shop.
- Motorautocar suggests asking to see parts that have been replaced or to see old fluids after they were swapped. If the shop says that’s impossible or refuses, it could be a sign it wasn’t done.
- Ask for a walkaround of the repairs that were done. Most mechanics are happy to show you what was done in the shop. While being walked around, look for evidence of repairs like the area being cleaned off, shiny new parts, tool marks on the bolts, tools being out or nearby, etc.
- Before taking your car in, look at other customer reviews on Google, Yelp, or Facebook. Many customers only review a company if they have negative reviews, so keep an eye out.
- For costly repairs, consider getting multiple opinions. If two to three shops suggest identical repairs, it’s likely to be true.
- Test a new shop with minor issues you’re aware of to see if they add anything to the repair bill.
- If applicable, bring someone to the shop who knows about cars to have them double-check or read a repair bill.
- Get everything on paper. Not only is it important for your repair records, but it can help protect you if legal measures are necessary.
Source: Motorautocar, AARP
