Drivers underestimate vehicle maintenance costs by 167%, survey reports

A new Cost of Car Ownership survey from Synchrony found that drivers are significantly underestimating what they spend to keep their vehicles on the road. Excluding loan and lease payments, respondents estimated annual ownership costs at $2,738, while actual yearly expenses averaged $7,303—a $4,565 gap, or roughly 167% more than expected.

Younger drivers reported even higher totals, with Millennials averaging $10,101 per year and Gen Z at $9,984. Maintenance and repair spending also exceeded overall averages, with younger drivers outpacing the $622 maintenance average and $659 service and repair average.

Synchrony noted the findings may help explain a decline in multi-vehicle households as rising vehicle and maintenance costs continue to impact budgets.

“The disparity between perceived and actual spending can create real financial strain for drivers who may not be budgeting for the true cost of car ownership,” said Curtis Howse, EVP & CEO, home and auto, Synchrony. “That’s why becoming informed about the full scope of car ownership costs and planning ahead for how to pay for them is essential. Access to flexible financing can help ease that affordability burden, allowing drivers to handle routine maintenance and address unexpected repairs without making difficult financial trade-offs.”