Surging gas prices push vehicle ownership costs to record high, Navy Federal says.
The latest Cost of Car Ownership Index shows transportation expenses rising far faster than wages, intensifying financial pressure on American households.
The cost of owning a vehicle in the United States reached a record high in March, driven largely by a sharp surge in gasoline prices, according to new data released by Navy Federal Credit Union.
The institution’s Cost of Car Ownership (COCO) Index rose 4.7% in March, climbed 5.5% over the past year and has increased 47.6% since January 2020. The latest spike underscores the growing financial strain facing consumers as transportation costs continue to outpace wage growth and broader inflation.
Gasoline prices soared 21.2% month over month, accounting for the bulk of the increase. Auto repair and maintenance expenses also continued their upward trajectory. The COCO Index, which uses data from the Bureau of Labor Statistics, tracks 11 major costs associated with owning and maintaining a vehicle.
“The Cost of Car Ownership Index soared to a record high in March, underscoring the squeeze so many Americans are facing financially right now,” said Heather Long, chief economist at Navy Federal Credit Union. “The 21% jump in gas prices in March was the largest factor leading to the new all-time high, but maintenance costs, repair costs and tires were all up around 1% as well during the month.”
Since January 2020, vehicle ownership expenses have risen significantly faster than both inflation and wages, highlighting the growing affordability challenge for many households.
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“Car ownership costs have risen much faster than overall inflation and wages since January 2020. Navy Federal’s Cost of Car Ownership Index is up almost 48%, while wages have risen only 31.5% since 2020,” Long continued. “The biggest concern is there’s no relief on the horizon for car owners. Ending the war in Iran and re-opening the Strait of Hormuz are the only realistic ways to ease costs this year.”
The findings provide insight into the pressures confronting consumers who rely on personal vehicles for commuting and daily life. While some inflation-related pressures have moderated in recent months, transportation costs remain a significant burden on household budgets.
Despite rising costs, industry conditions are beginning to stabilize, offering potential opportunities for prepared buyers, according to Navy Federal.
“Buying and owning a car today can feel more challenging than it has in years, but there is still a real opportunity for smart, informed buyers, and we’re here to guide our members every step of the way,” said Kevin Wince, vice president of consumer lending operations at Navy Federal. “Industry trends show that while costs have increased the market is beginning to stabilize. Vehicle inventories are improving and buyers are seeing more options than in recent years. At the same time, lenders and financial institutions are introducing more flexible solutions designed to meet consumers where they are.”
Wince added that financial preparation and strategic planning remain essential for consumers navigating the current market.
“Even in a higher cost environment, preparation and the right financial partner can make all the difference,” he said. “We are seeing members succeed by planning, exploring both new and used options, and taking advantage of tools that put them in control. One excellent option at Navy Federal Credit Union is a pre-approval loan. This allows you to shop like a cash buyer and have a leg up while negotiating.”
The COCO Index uses January 2020 as its benchmark, with an index value of 100, enabling comparisons between vehicle ownership costs and overall consumer inflation. Navy Federal last released updated COCO Index data in November 2025.
Founded in 1933, Navy Federal Credit Union has grown into the world’s largest credit union, serving more than 15 million members worldwide. The member-owned institution provides financial services to active-duty service members, veterans, Department of Defense personnel and their families through a global network of branches and digital channels.
As energy prices remain volatile, the latest findings suggest that transportation costs will continue to play a central role in shaping household finances in the months ahead.
“The Cost of Car Ownership Index soared to a record high in March, underscoring the squeeze so many Americans are facing financially right now.”
– Heather Long
Chief Economist
Navy Federal Credit Union
Ken McCarthy is manager of marketing communications at Tyfone, where he monitors the credit union industry and contributes to conversations shaping its future. He previously covered credit unions and community banking for American Banker and S&P Global Market Intelligence. He holds a journalism degree from Point Park University and has more than 15 years of experience covering financial services. He is also the author of three literary fiction novels.
