Cars are essential in most of the U.S. They're also increasingly unaffordable
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NPR's series Cost of Living: The Price We Pay is examining what's driving price increases and how people are coping after years of stubborn inflation. How are higher prices changing the way you live? Fill out this form to share your story with NPR.
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Car ownership
How have prices changed since before the pandemic?
The cost of owning a car is up 40.59% since January 2020, according to an index from Navy Federal Credit Union.
That index tracks the cost of new and used cars, repairs and maintenance, insurance, tires, accessories, gasoline, parking, and registration and licensing fees.
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Why have the prices gone up?
From 2000 to 2020, the cost of car ownership rose roughly in line with inflation, according to Navy Federal Credit Union's data. But starting in the pandemic, it far outstripped the cost of living overall.
Partly, that reflects the soaring cost of vehicles. Pandemic-induced supply chain disruptions led to a chip shortage several years ago, reducing the supply of new vehicles and prompting automakers to focus on their most expensive, highest-margin vehicles .
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