Car Ownership Costs Keep Rising

Did you read the recent Axios Boston article on the rising cost of driving in Massachusetts? The article pulls together several data points that show just how expensive car ownership has become.

According to Axios, the average monthly payment for a new vehicle in Massachusetts is now $699. For a used vehicle, the average monthly payment is $511. The article also notes that the average amount financed for a new vehicle reached a record $43,899 nationally in the first quarter of 2026. As a result, longer loans are becoming more common. Nearly 23% of financed new-car purchases now involve loans of 84 months or longer. And even with these longer loans, around twenty percent of financed new-car buyers are taking on a payment of $1,000 per month or more.

Rising costs do not end with the loan payment. Axios also cites rising insurance and repair costs. This issue had already been flagged by The Boston Globe in 2024, when it reported that auto insurance costs in Massachusetts had risen by almost 38% since the beginning of 2022. The Globe described increases driven by more expensive claims, higher repair costs, more technologically complex vehicles, medical costs, theft, and severe weather.

This is not just a Massachusetts problem. It is a national one. AP News reported back in April that the average cost of a new car was nearing $50,000, while the share of vehicles listed below $30,000 has fallen sharply. Reuters reported late last year that subprime auto-loan delinquencies had reached a record high. And the Guardian reported in October 2025 that car repossessions had risen to their highest level since 2009.

For employers, property owners, municipalities, and transportation planners, these are not just consumer finance stories. They are transportation access stories. When the cost of owning a car rises, the urgency of reliable alternative commute options rises with it.