VIENNA, Va. — Navy Federal Credit Union said its latest Cost of Car Ownership (COCO) Index shows vehicle ownership costs reached a record high in March, driven largely by a surge in gasoline prices.
According to Navy Federal Credit Union, the COCO Index rose 4.7% in March, increased 5.5% over the past year and is up 47.6% since January 2020, when the index baseline was set at 100.
The credit union said gasoline prices climbed 21.2% month over month, accounting for most of the increase. Other costs tied to vehicle ownership, including maintenance, repairs and tires, also rose modestly during the period.
‘Record High’
“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 in a statement. “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.”
The COCO Index, which uses data from the Bureau of Labor Statistics, tracks 11 major expenses associated with owning and maintaining a vehicle and compares those costs with overall consumer inflation.
Long said vehicle ownership costs have outpaced both inflation and wage growth since 2020.
‘No Relief on Horizon’
“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,” Lon g said in a statement. “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.”
Navy Federal said the findings highlight ongoing pressure on household budgets tied to commuting and daily transportation, even as some other inflation-related costs have begun to ease.
“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,” Kevin Wince, vice president of consumer lending operations, said in a statement.
What Members are Doing
Wince said improving vehicle inventories and more flexible financing options are beginning to stabilize the market, offering consumers additional choices.
“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 credit union said the index provides insight into how fluctuating energy prices and other factors continue to shape transportation costs and overall household spending.
