Drivers Underestimate the Annual Cost of Car Ownership by More Than $4,500, New Synchrony Survey Finds

Rhea-AI Summary

Synchrony (NYSE: SYF) survey finds drivers underestimate annual car ownership costs by $4,565, estimating $2,738 versus an actual average of $7,303 (excluding loan/lease payments) as of Feb. 17, 2026. Insurance is the largest single cost at $1,730 annually. Younger drivers face higher totals: Millennials ~$10,101 and Gen Z ~$9,984 per year. The company highlights rising costs, shifting consumer behavior, and the potential role of flexible financing such as the Synchrony Car Care Credit Card to help manage expenses.

Positive

• $4,565 ownership underestimation presents financing demand opportunity
• Average actual annual car cost of $7,303 supports need for payment solutions
• Synchrony promotes Car Care Credit Card with six-month promotional financing eligible on purchases $199+

Negative

• Higher ownership costs could weigh on consumer spending
• Gen Z and Millennials face near-$10,000 annual vehicle costs
• Decline in multicar households: 65% report managing only one vehicle

Understanding Actual Costs Helps Car Owners Better Plan for Expenses and Manage Budgets

Key Highlights:

• Car owners dramatically underestimate the cost of car ownership and should prepare for the full scope of vehicle expenses.
• Rising costs are shifting consumer behavior, with people keeping cars longer and multicar households declining.
• Greater understanding of costs and flexible financing options that let drivers pay over time will help drivers better manage vehicle expenses.

STAMFORD, Conn., Feb. 17, 2026 /PRNewswire/ -- Synchrony's (NYSE: SYF) new Cost of Car Ownership survey reveals drivers are paying nearly 167% more per year than expected to keep their current vehicles on the road.[1] This $4,565 discrepancy between estimated and actual costs could place an additional burden on household budgets and weigh on consumer spending in other categories.

According to Kelley Blue Book, the average sale price of a new car hit a record $50,080 in 2025. With rising tariffs and broader economic uncertainty adding further pressure, many consumers are rethinking their buying decisions. In a 2024 study, nearly 60% of Americans said they were choosing to keep their vehicles longer to avoid the financial burden of a new purchase.

Synchrony's Cost of Car Ownership survey found that even those forgoing a new car purchase are still spending more on maintenance and other auto-related expenses than they expect. Excluding loan and lease payments, car owners estimate spending $2,738 annually on their vehicle. However, the survey shows the actual yearly total is $7,303. These figures are even higher for younger drivers, with Millennials and Gen Z spending $10,101 and $9,984 per year, respectively.

"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."

Other key insights from Synchrony's Cost of Car Ownership survey include:

• Insurance is the Biggest Contributor to Annual Car Spend: When examining what factors are driving these rising costs, the most significant expense was insurance, which costs drivers an average of $1,730 annually. Other top expenses include maintenance ($622) and service/repairs ($659), tires ($377), and auto parts and accessories ($240).
• Multicar Households on the Decline: Increasing vehicle prices and maintenance costs may also be contributing to the decline in multicar homes. According to the research, 65% of respondents report they are responsible for managing only one vehicle in their household, while just 25% manage two cars. These numbers fall below the 2023 U.S. Census, which showed 37% of households had two vehicles and 22% of households owned three cars or more.
• Gen Z and Millennials are the Leading Spenders: Gen Z and Millennials spend the most across all major categories, including car maintenance, where they spend $976 and $768 each year, respectively, compared to the $622 average. The same holds for service and repairs, including transmission replacement and engine work, where Gen Z and Millennials are spending $983 and $931 each, well above the $659 average. Despite these high costs, Gen Z and Millennials continue to get behind the wheel, outspending all others on gas, tolls, parking, and car washes each month.
  • Gas/Fuel: Millennials ($207) and Gen Z ($193) spend more per month than the $163 average.
  • Tolls: Gen Z and Millennials spend more ($29 and $34) than the $19 average.
  • Parking: Gen Z and Millennials spend more per month on parking ($32 and $34) than the average consumer ($20).
  • Car Washes: Gen Z and Millennials spend more on car washes monthly ($36 and $46) than the average consumer ($30).

Synchrony's Cost of Car Ownership survey was a quantitative online survey of 1,030 consumers aged 18+ from around the United States, fielded in partnership with the Ask Suzy platform, which gathers real-time feedback from the general population. All survey respondents were self-reported to be financially responsible for the general costs and upkeep of at least one passenger vehicle that they owned or leased.

To help manage the costs of car ownership, the Synchrony Car Care Credit Card offers drivers a flexible financing solution designed specifically for auto maintenance, tires, repairs, insurance and related expenses. With special financing options and no annual fee2, the card provides consumers the ability to spread out payments over time, helping to make it easier to handle routine upkeep and unexpected repairs without disrupting their monthly budgets. The Synchrony Car Care Credit Card covers things drivers need to stay on the road, including tires, tolls, parking, gas, EV charging, car registration, insurance and more and is also accepted at more than one million auto merchant locations nationwide3.

FAQ

How much do drivers underestimate annual car costs?
Synchrony's survey found a $4,465 gap between what drivers expect to spend and what they actually spend each year. Owners estimate $2,738, but real annual costs average $7,303 (excluding loan/lease payments). Younger drivers pay even more, around $10,000 per year.

What expenses make up the true cost of owning a car?
Insurance is the largest annual expense at about $1,730. Other key costs include maintenance ($622), service/repairs ($659), tires ($377), and parts/accessories ($240), plus ongoing items like gas, tolls, parking, and car washes. These figures exclude loan or lease payments.

What financing options can help make ownership more affordable?
The Synchrony Car Care Credit Card offers six months promotional financing on eligible purchases of $199 or more⁴, letting cardholders spread payments over time.

About Synchrony
Synchrony (NYSE: SYF) is a leading consumer financing company that has been at the heart of American commerce and opportunity for nearly a century. Synchrony delivers credit and banking products that empower tens of millions of consumers to improve their financial lives and access what matters most. Leveraging innovative solutions that are shaping the future of retail commerce, Synchrony supports the growth and success of some of the nation's most respected brands, alongside hundreds of thousands of small and midsize businesses, including health and wellness providers. Committed to excellence in service and culture, Synchrony is honored to be ranked the #2 Best Company to Work For® in the U.S. by Fortune magazine and Great Place to Work®. For more information, visit www.synchrony.com.

Contact:

Lauren Devilbiss
Synchrony
Lauren.Devilbiss@syf.com

1 Ask SUZY – Synchrony's Cost of Car Ownership Pulse, July '25 2 New Accounts as of 7/31/25: Purchase APR 34.99%. Penalty APR 39.99%. Min Interest Charge $2. Existing cardholders: See your credit card agreement terms. 3 Subject to credit approval. Valid everywhere Synchrony Car Care is accepted in the U.S., including Puerto Rico. Visit synchrony.com/carcare for merchant locations. 4 Subject to credit approval. Minimum monthly payments required. See synchrony.com/carcare for Promotional Financing details and merchant locations. Gas station purchases are not eligible for Promotional Financing.

 

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SOURCE Synchrony

FAQ

How much do drivers underestimate annual car ownership costs, according to Synchrony (SYF) Feb. 17, 2026 survey?

Drivers underestimate costs by about $4,565 on average. According to the company, owners estimated $2,738 but actual annual costs averaged $7,303 (excluding loan/lease payments).

What is the largest component of annual car ownership costs reported in Synchrony (SYF) survey?

Insurance is the largest component at about $1,730 per year. According to the company, other major costs include maintenance $622 and service/repairs $659 annually.

How do Gen Z and Millennial car ownership costs compare in Synchrony (SYF) findings?

Younger drivers spend substantially more, near $10,000 annually. According to the company, Millennials average $10,101 and Gen Z $9,984 per year on vehicle costs (excluding payments).

What consumer trends did Synchrony (SYF) find tied to rising vehicle costs on Feb. 17, 2026?

Rising costs are shifting behavior: more consumers keep cars longer and multicar households decline. According to the company, 65% now manage only one vehicle in their household.

How can Synchrony’s financing help drivers manage car ownership costs (SYF)?

Synchrony offers the Car Care Credit Card with flexible options including six-month promotional financing. According to the company, it covers maintenance, tires, repairs, insurance, gas, tolls, and more.

What survey methodology did Synchrony use for the Cost of Car Ownership report (SYF) Feb. 17, 2026?

The survey was a quantitative online poll of 1,030 U.S. consumers aged 18+. According to the company, respondents self-reported financial responsibility for at least one passenger vehicle.