Navy Federal Credit Union recently released its latest Cost of Car Ownership (COCO) Index. In the age of news and information overload, it’s a resource simply designed to help consumers better understand the changes in costs of vehicle ownership. The comprehensive report includes costs like gas, insurance, repairs and purchase prices to help shoppers make better choices and wise purchases. It starts with a base benchmark date of January 2020 and pulls data gathered from the Bureau of Labor Statistics about 11 cost components associated with owning a car.

Here’s the scoop:

Costs have steadily been on the rise for years, but the recent uptick is unusual.

According to the COCO Index, which measures data from January 2020 to August 2025, car ownership costs have surged by 40.59%. Nearly doubling the 24.79% rise in overall consumer prices for the same time period — with the greatest increase from the end of 2024 through August 2025. For this time period, car ownership costs increased 0.8% compared to a 1.8% rise in prices for all goods and services.

Give me a lay of the land. What’s happening?

While the costs associated owning a car are growing, it’s actually less than the costs that are rising all around us and a bit lower than the current rate of inflation. That being said, the data says that costs are close to being at an all-time high, and people are starting to feel the pinch. “As inflation climbs, it’s eating into paychecks. This is why many Americans are shifting their spending to generic brands and bargain stores as they seek to make every dollar go as far as they can,” continued Long. “While auto insurance costs are finally cooling off, used car prices and auto repair prices are rising sharply as people try to look for cheaper ways to own cars and keep their current car going for longer. Both new and used car prices are almost certainly going to rise further in the coming months, putting more strain on middle and lower-income households.”

What does the new data say?

The most recent data says what most Americans are noting already – prices are on the move. It is no surprise that we see it in both the used and new car markets. It’s also saying that the costs of maintenance are keeping in alignment with that trend. Key data points from the August 2025 COCO Index reflect changes in car ownership costs from July to August 2025:

• New car prices increased by 0.28%
• Used car prices went up 1.04%
• Gas prices rose 1.91% 
• Repair costs jumped 5.0%

“The cost of owning a car is rising again and is not far from the all-time high hit in January 2025,” said Heather Long, chief economist at Navy Federal Credit Union. “The American middle class is already frustrated with high prices, and they are likely to feel pinched even further in the next six months as more of the tariff costs are passed along to consumers. Already, the latest inflation data show that basic necessities for American life – food, gas, rent, clothing and car ownership – are all rising in cost.”

What can you do to still score and keep a good deal?

“Used car prices have jumped more than 6% compared to last year, showing just how competitive the market has become,” said Kevin Wince, vice president of consumer lending servicing, projects and fraud at Navy Federal. “What was once seen as the more affordable option is now stretching budgets for many buyers. This shift is making it harder for families to find good deals, which is why it’s important to plan ahead for one of life’s biggest purchases.”

Get pre-approved. “Getting pre-approved for a loan gives buyers the advantage of shopping like a cash buyer, helping them move quickly and negotiate more effectively.

Check car reliability reports – before you buy! “Repair costs have also gone up 15% in the past year, making regular maintenance or surprise breakdowns more expensive than before,” noted Wince. “Checking car reliability reports before buying can help shoppers make smarter, more informed choices.” It will also save you money down the road — which is always a good plan.

Take advantage of promotions. “Your local dealers will have timely promotions on models that are transitioning and at the end of seasons.” Teia Collier, publisher at DallasSingleMom.com. “It’s worth an ask and negotiating to find your best deal.”