The American love affair with the car is facing a financial roadblock. A recent Real Research survey confirms what many drivers already know: owning a car is getting more expensive.  The rising costs of owning a car, from insurance, repairs, and even parking, are putting a strain on wallets, forcing many to reconsider their dependence on cars.

Key Findings:

  • 80% feel the financial burden of car ownership, with nearly 30% reporting a significant strain.
  • While nearly 60% find advanced technology on cars beneficial, 40% feel it doesn’t justify the rising costs.
  • 70.83% believe owning a car is becoming less financially viable.

The Cost of Owning a Car Keeps Rising

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Figure 1: Respondents who reported feeling a direct hit from the rising costs of owning a car.

The survey on the soaring cost of owning a car found that a whopping 73.5% of respondents were aware of the recent surge in car ownership expenses. This awareness isn’t surprising when car insurance premiums alone have jumped a staggering 20.6% year-over-year. And it’s not just premiums; 70.73% reported feeling a direct hit from these increases.

Read Also: Owning an Electric Car has an Advantage Over a Gasoline Car

Budget Strain Is Real

The financial impact is undeniable. Nearly 30% said the soaring cost of owning a car has significantly strained their budgets. While another half (50.33%) have been forced to make adjustments to manage, only a small portion (12.37%) reported no significant impact.

The-soaring-cost-of-owning-a-car-affects-the-budget
Figure 2: The soaring cost of owning a car affects the budget.

The survey also sheds light on actual spending. With the average annual cost of owning a new car reaching $12,182 in 2023, it’s no wonder budgets are feeling the squeeze. However, nearly 60% reported spending less than $8,000 annually.

Tech Trade-off

Modern vehicles are packed with advanced technology, but opinions are divided on whether it justifies the inflated costs. While 59.57% believe the benefits of advanced technology outweigh the soaring cost of owning a car, 40.43% disagree.

Also Read: 31.47% of the Respondents Prefer a Lexus in Terms of Product Price

Can You Afford to Drive?

The survey’s final questions hint at a potential change in transportation habits due to the soaring US car prices. A resounding 70.83% of respondents believe owning a car is becoming less financially viable.

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Figure 3: Is owning a car becoming less financially viable?

Faced with the soaring cost of owning a car, many are looking for alternatives. Public transportation emerged as the most popular option (51.5%), followed closely by ridesharing (39.82%).  The rest (8.68%) is open to exploring greener options like cycling or e-scooters.

Methodology

Survey TitleSurvey on the Soaring Cost of Owning a Car
DurationApril 30 – May 8, 2024
Number of Participants6,000
DemographicsMales and females, aged 21 to 99
Participating Countries Afghanistan, Algeria, Angola, Argentina, Armenia, Australia, Azerbaijan, Bahrain, Bangladesh, Belarus, Benin, Bolivia,… Brazil, Brunei, Bulgaria, Burkina Faso, Cambodia, Cameroon, Canada, Chile, China, China (Hong Kong) China (Macao), China (Taiwan), Colombia, Costa Rica, Croatia, Czech Republic, Ecuador, Egypt, El Salvador, Ethiopia, Finland, France, Gambia, Georgia, Germany, Ghana, Greece, Greanada, Guatemala, Honduras, Hungary, India, Indonesia, Iraq, Ireland, Israel, Italy, Ivory Coast, Japan, Jordan, Kenya, Kuwait, Kyrgyzstan, Latvia, Lebanon, Libya, Lithuania, Malaysia, Maldives, Maluritania, Mexico, Moldova, Mongolia, Morocco, Mozambique, Myanmar [Burma], Namibia, Nepal, Nicaragua, Nigeria, Oman, Pakistan, Palestine, Panama, Peru, Philippines, Poland, Portugal, Qatar, Romania, Russia, Saudi Arabia, Serbia, Sierra Leone, Singapore, Slovakia, South Africa, South Korea, Spain, Sri Lanka, Tanzania, Thailand, Togo, Tunisia, Turkey, Turkmenistan, Uganda, Ukraine, United Arab Emirates, United Kingdom, United States, Uruguay, Uzbekistan, Venezuela, Vietnam, Yemen, Zimbabwe.