Two reports from Doxo reveal that the cost of car ownership has increased 7% year over year to $6,184 annually. The reports also reveal that Americans as a whole spend $811 billion annually on Auto Loans and Auto Insurance combined. A statistical analysis of actual household payments toward Auto Loans and Auto Insurance was used to size the market and amount spent per household across 97% of U.S. zip codes. The 2023 U.S. Auto Loan Market Size and Household Spending Report found that U.S. Households with Auto Loan and Auto Insurance bills spend $674 per month, or $8,088 per year – or $6,184 when averaging across all U.S. households.

The reports break out the household spending market size; percentage of households that pay each bill; and average monthly and annual bill pay costs by state, as well as the 50 largest U.S. cities (based on the number of households), and those cities with 40k or more residents. Key findings include:

Cost of Car Ownership in the U.S.

• Americans spend a total of $811 billion a year on Auto Loans and Auto Insurance.
• The average annual cost per household is $6,184 a year for both Auto Loans and Auto Insurance.

Auto Loans Market Size and Household Spending Snapshot

• Total Market Size: $544 billion spent per year.
• Average Monthly/Annual Cost: $467 spent per month; $5,604 spent per year.
• Percent of Households: 74% of U.S. households pay Auto Loans.
• Average Annual Cost per U.S. Household: $4,147 per year.
• Percent of Annual Income: Auto Loan bills amount to 9% of consumers’ income per year.

 Auto Insurance Market Size and Household Spending Snapshot

• Total Market Size: $267 billion spent per year
• Average Monthly/Annual Cost: $207 spent per month; $2,484 spent per year.
• Percent of Households: 82% of U.S. households pay Auto Insurance.
• Average Annual Cost per U.S. Household: $2,037 per year.

Percent of Annual Income: Auto Insurance bills amount to 4% of consumers’ income.