Auto prices have been climbing rapidly in recent years, well outpacing inflation. In 2012, the average new car was $30,000. By March 2025, that figure topped $47,000. Used cars, once a budget-friendly alternative, are no longer a solution to high prices — pre-owned car prices spiked during the pandemic and haven’t dropped since. Now, looming uncertainty around potential Trump-era auto tariffs is also adding to consumers' concerns.
Why is this issue so pressing? Cars are a necessity for most Americans — 78% rely on a car to commute, while just 1 in 10 rarely drive.
To understand how auto affordability hits home, Big Bear Engine Company asked 1,000 drivers how today’s car market is reshaping their budgets, stress levels, and future plans.
Key Findings
- Nearly 1 in 3 Americans have taken on a second job to afford a vehicle, and for Gen Z, that number jumps to 55%.
- Only 25% of Americans would stop driving a damaged car until they could afford repairs, posing widespread safety concerns.
- 86% of Americans don’t believe they’ll be able to afford a new car within the next year.
- Nearly 1 in 4 Gen Z drivers (23%) already use AI tools like ChatGPT for car repairs, with another 11% planning to ditch the mechanic soon.
- 67% of Americans couldn’t afford a vehicle if prices rose by just $500 due to tariffs.
- 38% of drivers have delayed routine maintenance in the past year due to cost, increasing the risk of breakdowns and accidents.
- Inflation is hitting drivers hardest at the pump — 59% say gas prices have increased more than any other expense, followed by insurance (51%) and repairs (36%).
- 44% of Americans have made difficult financial trade-offs due to car costs, including cutting back on groceries or borrowing money from family or friends.
- 84% of Americans now drive vehicles more than three years old and nearly half want to upgrade but can’t afford to.
Millennials and Gen Z Spend the Most on Car-Related Expenses
Only 38% of Americans spend less than $250 per month on all their car-related expenses.
Younger Americans are feeling the pinch of car ownership more than any other generation. Nearly 3 in 4 millennials (73%) and 79% of Gen Z drivers spend over $250 a month on car expenses. Baby boomers, on the other hand, are far less burdened — 63% spend less than that.
In fact, younger drivers are nearly five times more likely than boomers to drop $500 or more each month just to stay on the road. It’s no wonder many are starting to feel “car poor.”
Younger Americans Feel Strained by Rising Costs
The higher cost of vehicle ownership and the necessity of having a car create a difficult financial scenario for many Americans, especially younger generations. 44% of Americans say they’ve had to make a difficult financial decision in the past year due to rising car expenses. These decisions include cutting back on groceries or borrowing money from family and friends.
The financial strain of car ownership hits younger Americans hardest — and not just in how much they spend. Gen Z and millennials are far more likely to make tough trade-offs just to stay on the road.
Nearly 1 in 5 Gen Z drivers (23%) have borrowed money from friends or family to cover auto expenses, and 17% have cut back on groceries or skipped meals. Millennials are close behind, with 16% relying on borrowed money and 13% making similar food-related sacrifices. Older generations report these hardships far less often, underscoring how uneven the burden of rising car costs really is.
More than half of Americans earning under $50,000 say they’ve had to make sacrifices to afford a car as well. By comparison, only 28% of those making $150,000 or more say the same.
Gas and Insurance Costs Rising Rapidly
In the face of inflation and economic uncertainty, which vehicle expenses are taking the biggest bite out of drivers' budgets?
- Gas: 59%;
- Insurance: 51%;
- Repairs: 36%;
- Vehicle maintenance: 35%;
- Registration fees and taxes: 16%.
Rising Prices Hurting Car Sales
More than half of Americans say their automotive expenses have gone up over the past year, with 58% reporting an increase in vehicle-related costs. But what’s hitting their wallets the hardest? We asked drivers to pinpoint the most financially stressful part of owning a vehicle right now — here’s what they said.
With vehicle costs piling up, a lot of drivers are having to make tough calls. We asked people what they’ve postponed in the past year because of how expensive it’s gotten to own a vehicle, and the answers say a lot.
Gen Z is the most likely to put off essential car expenses, even when those costs are critical to keeping their vehicles on the road.
- 40% have delayed major repairs.
- 51% have delayed routine automobile maintenance.
- 38% have delayed car insurance payments.
High interest rates are causing many Americans to hit the brakes on vehicle shopping. Nearly two-thirds (66%) say they’re likely to postpone buying or leasing a vehicle if rates remain high, while only 19% say it’s unlikely to impact their plans. Another 15% weren’t planning to make a vehicle purchase either way.
Americans Keep Cars Longer To Save Money
With vehicle costs climbing, Americans are hanging onto their rides longer than ever. 84% of drivers own vehicles that are over three years old, and just 16% are driving something newer. Here's a closer look at what’s sitting in driveways across the country:
- 0-3 years old: 16%;
- 3-5 years old: 25%;
- 6-10 years old: 30%;
- More than 10 years old: 29%.
The average age of vehicles on American roads is 12.6 years. This stat shows the impressive longevity of modern cars, but it doesn’t mean that people are happy keeping their older vehicles on the road. 45% of Americans want to replace their older vehicle, but they currently can’t afford to do so.
The trend of younger buyers struggling to afford vehicles holds true here as well. Over half of millennials (53%) and Gen Zers (52%) say they want to replace their vehicle but can’t afford to, compared to just 28% of baby boomers who feel stuck with an aging vehicle.
Despite affordability problems, people still want a new vehicle. 3 out of 5 drivers plan to upgrade their car in the next three years, though only 14% think it’s possible within the next 12 months.
Gen Z Embracing Alternative Transportation Methods
Rising vehicle costs are pushing many Americans to change how they get around, and younger drivers are leading the shift. While 40% of all drivers say they’ve made adjustments due to the expense of owning a vehicle, Gen Z is about 1.5 times more likely to have done so, with 58% reporting a behavior change.
So, what alternatives are younger Gen Z drivers embracing as vehicle ownership becomes harder to afford?
- 27% are using rideshare services like Uber or Lyft instead of driving.
- 1 in 5 are sharing a vehicle with a partner to cut costs.
- 20% have started carpooling to save on gas and maintenance.
- 15% have switched to public transportation as a lower-cost option.
- 13% downgraded to a cheaper vehicle in the past year.
- 9% have sold their vehicle entirely, giving up ownership altogether.
Millennials also use alternatives to car ownership, but not quite to the extent of Gen Z. For instance, 1 in 5 use rideshare services, and 6% have sold their vehicle. In contrast, only 3% of baby boomers use rideshare services, and 1% sold their vehicles.
1 in 4 Americans Depends Solely on Cars for Transportation
If forced to give up their vehicle for financial reasons, here’s what drivers across the country say they’d turn to:
- 25% would rely on public transportation.
- 19% would borrow or share a vehicle.
- 17% would use ridesharing services like Uber or Lyft.
- 13% would switch to biking or walking.
- Less than 1% would resort to hitchhiking.
- 25% say they would struggle without a vehicle and have no real alternative.
Interestingly, while younger generations are more burdened by the cost of vehicle ownership, it’s older drivers who say they’d struggle the most without one. Over a third of baby boomers (37%) say they wouldn’t know how to get around without a vehicle, compared to 27% of Gen Xers, 18% of millennials, and just 16% of Gen Z.
One explanation: Gen Z is far more comfortable relying on alternatives. Nearly a quarter say they’d use rideshare apps (23%) or borrow or share a car (24%) — much higher than the rates among baby boomers (13% and 18%, respectively).
Car Buyers Bracing for Tariff Impacts
With new auto tariffs on the horizon, many Americans are bracing for higher prices at the dealership. 83% say they’re concerned that manufacturers or dealers will raise prices or add hidden fees to offset the impact. But with budgets already stretched, how much more could drivers realistically afford to pay out-of-pocket?
Older Americans seem less concerned about potential auto tariffs — 22% of baby boomers and 20% of Gen Xers say they aren’t worried, compared to just 11% of Gen Z and 12% of millennials. But when it comes to financial readiness, it’s a different story. One-third of Gen Xers (33%) and a quarter of boomers (25%) say they couldn’t afford even a $100 price increase on a vehicle. That number drops to just 18% among Gen Z.
Auto tariffs could tack on anywhere from $2,000 to $12,000 to a car’s sticker price, and that’s before factoring in steel, aluminum, or retaliatory tariffs from other countries.
Since March, Trump’s tariffs on steel imports have already driven material spot prices up 20%. For many Americans — especially older buyers on fixed incomes — these added costs could shut the door on car ownership altogether.
With these new tariffs in motion and uncertainty ahead, drivers are already thinking about how to adjust their vehicle-related spending. From delaying purchases to cutting back on driving, here’s how Americans say they plan to respond:
- 28% plan to delay buying a car.
- 21% don’t think they will have to change their plans.
- 21% say they’ll look for cheaper alternatives.
- 14% plan to rush out and buy a car before the tariffs take effect.
- 13% say they’ll have to save regardless before they make an auto purchase.
Over a third of baby boomers (35%) say they plan to delay buying a vehicle until the market stabilizes, but Gen Z doesn’t have that luxury. Only 20% of younger drivers say they’re willing or able to wait, suggesting many are being pushed to make high-cost decisions out of necessity, not choice.
While many drivers are already cutting back due to rising costs, tariffs could also influence how — and what — they choose to buy next.
- 36% of people would buy domestic brands to get around tariff-related price hikes.
- 17% would still consider imported vehicles even if they cost more.
- 20% would decide strictly based on price, regardless of where the vehicle came from.
- 24% would consider the overall cost of ownership and get a car that provides long-term value and reliability, even if it costs more initially.
Baby boomers are the most likely to favor American-made vehicles, with 40% saying buying domestic would influence their next purchase. Gen Z, on the other hand, is the least likely to prioritize U.S.-made cars, with just 27% saying this would impact their decision.
High Income Earners Not Immune to Tariff Squeeze
Beyond delaying purchases or rethinking insurance, some drivers are getting creative in how they respond to rising costs and tariff concerns. 1 in 5 are putting off buying new parts, and 19% are opting to repair their current vehicle instead. Others are reconsidering how to acquire their next ride altogether — 12% say they’ve considered leasing instead of buying as a way to manage affordability in an uncertain market.
However, tariffs aren’t just worrying low- and middle-income drivers; high earners are feeling the pressure too. 32% of Americans earning over $150,000 plan to delay their vehicle purchase until prices stabilize, slightly above the overall average of 29%. Meanwhile, 17% of high earners say they’ll rush to buy a vehicle before tariffs drive up sticker prices, compared to 14% across all income groups.
These concerns come as many drivers are already struggling with affordability. 15% of Americans have fallen behind on an auto loan or lease payment in the past year, and surprisingly, the issue spans all income levels. From 16% of those earning under $50,000 to 14% of those making $150,000 or more, late payments are hitting drivers across the board.
Cost of Car Care Threatens Americans’ Financial Security
So what happens when a major repair hits or a paycheck disappears? Here's how drivers say they’d handle an unexpected financial blow to their vehicle budget.
When a repair is out of reach financially, many drivers are left with a tough decision: keep driving or park it until they can afford the fix. Here's how long most say they'd wait before getting their vehicle repaired:
- 25% would stop driving until they could afford the repair.
- 24% would keep driving for less than a week.
- 30% would keep driving for 1-4 weeks.
- 9% would keep driving for 1-3 months.
- 4% would keep driving for more than 3 months.
- 10% would keep driving until it completely breaks down.
When it comes to unaffordable repairs, the richest and poorest drivers respond surprisingly similarly. About 1 in 4 drivers in both the lowest (26%) and highest (27%) income brackets say they’d stop driving until they could afford the fix. And when pushed to the edge, 11% of high earners and 12% of low earners admit they’d keep driving until their vehicle completely breaks down.
Millennials and Gen Z Rely on Technology for Diagnostics and Repairs
With vehicle expenses continuing to rise, many drivers are looking for ways to cut costs wherever they can, especially when it comes to repairs. From YouTube tutorials to DIY diagnostics, here’s how Americans are trying to avoid a trip to the mechanic:
When it comes to DIY car repairs, younger drivers are turning to the internet — and AI — far more than older generations.
- Gen Z is 22 times more likely than baby boomers to use AI tools like ChatGPT to help with vehicle issues. Nearly 1 in 4 Gen Z drivers (23%) have already used AI and another 11% plan to — compared to just 1% of baby boomers.
- 30% of Gen Z rely on social platforms like TikTok, Facebook, or Instagram for repair guidance — more than double the rate of Gen X (13%).
- Reddit and online forums are also a go-to for 30% of Gen Z, showing a clear preference for crowd-sourced and peer-driven solutions.
Millennials follow closely behind, with 20% already using AI tools for vehicle help and 17% planning to, while their use of social platforms and forums is slightly more reserved than their Gen Z counterparts.
More Gen Zers Taking Second Jobs To Cover Vehicle Costs
Nearly 1 in 3 Americans have picked up a second job or side hustle in the past year to manage vehicle costs. About 16% took on extra work to cover ongoing expenses for a car they already own, while 15% are hustling to save for a future vehicle purchase.
Gen Z is hustling hard just to afford having a vehicle. More than half (55%) have picked up a side gig to cover car payments or save up for one — a huge leap compared to just 4% of baby boomers. Millennials (43%) and Gen Xers (23%) are also turning to extra work, showing just how common it’s become to take on a second job just to stay behind the wheel.
Car Ownership Worth the Sacrifice for Many Americans
How far are Americans willing to go to cut the cost of owning a vehicle? From skipping upgrades to making major lifestyle changes, many drivers are willing to get creative, and some are even taking extreme measures. Gen Z, in particular, is leading the charge when it comes to bold cost-cutting decisions.
Some Gen Z and millennials are willing to go to extreme (and slightly gross) lengths to get a brand-new vehicle.
- 1 in 4 Gen Zers say they’d go an entire year without showering for a free, fully paid-off car — millennials are nearly as extreme, with 23% saying the same.
- Over a third of Gen Z (36%) would live on ramen for a year, and 17% would give up housing stability to couch surf.
- 16% of Gen Z would get a face tattoo — more than double the rate of millennials (7%).
- 7% of Gen Z would even break both their arms and legs — just to avoid car payments.
The cost-cutting creativity doesn’t stop there — some Gen Zers are even getting strategic with their love lives. 13% have dated a mechanic or car dealer to save on vehicle costs, and 31% say they’d be open to it. Meanwhile, baby boomers are steering clear, with 92% saying the idea never even crossed their minds.
1 in 3 Americans say they’d spend a week in jail if it meant free gas for a year — and nearly half of Gen Z (48%) would take the deal. For many, the pain at the pump is worth doing time.
The cost of car ownership is high, but drivers have to pay it because a car is a necessity for many Americans. Without a vehicle, building a career or supporting a family can feel out of reach, especially in areas with limited public transit. While the challenge of ownership can be especially difficult for younger drivers, the rising costs of buying and maintaining a vehicle are affecting drivers from every generation all across the U.S.
Methodology
To better understand the true cost of vehicle ownership, we surveyed 1,000 drivers across the U.S. Our research included demographic data like age, income, and geographic region to identify trends among different groups of drivers.
Rather than focusing solely on the sticker price of new and used cars, the survey examined the full spectrum of ownership costs, including insurance, fuel, maintenance, and more. This broader approach gave us a clearer picture of how much Americans are really spending to stay on the road and how those costs are affecting affordability.
We also explored how tariffs might be influencing vehicle prices and asked respondents for their views on these economic pressures. Lastly, we looked at how Americans are managing these rising expenses, whether by cutting costs, delaying purchases, or turning to alternatives like public transit or rideshares.
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