Remember when owning a car felt like freedom? In 2025, that "freedom" comes with a hefty price tag. Between record-high insurance rates, $4+ gas prices, and the average new car payment hitting $748 per month – on top of all the hidden costs of car ownership, like repairs, fees, and parking – Americans are discovering that buying a car isn't the obvious choice it used to be.
The true cost of car ownership in 2026
Let's break down what the average American actually spends on their car each year:
Car payment: $748/month Used cars aren’t far behind at $532/month. Plus, the average new car loan now spans 69 months.
Insurance: $195/month Auto insurance jumped 26% in 2024 alone, with young drivers paying even more.
Gas: $95.40/month Based on 12,000 miles/year at current average gas prices ($2.862/gallon, as of January 23rd).
Maintenance & repairs: $75/month Oil changes, tires, brakes – and then there’s that unexpected (yet inevitable) repair...
Parking: $20-570+/month City dwellers know this pain—depending on your city, parking can cost more than a monthly car payment.
Total monthly cost: $917.40 - $1,683.40
Annual cost: $11,008.80 - $20,200.80
And that's before we talk about tolls, car washes, parking tickets, or cleaning up that coffee you spilled on the seats. Let alone the fact that your car loses 10% of its value the moment you drive off the lot, and it keeps depreciating 20% in the first year.
The rideshare alternative: Crunching the numbers
Daily commuters: $1,040/month Using Lyft for daily work commutes plus weekend activities.
Supposing ten $20 work rides + four $15 other rides each week.
Hybrid users: $640/month Combining rideshare with public transit or occasional walking.
Supposing five $20 work rides + four $15 other rides each week.
Weekend warriors: $480/month Using Lyft for social activities, errands, and airport runs.
Supposing two $30 airport rides + four $15 other rides each week.
And here's what you DON'T pay for:
❌ Insurance premiums
❌ Maintenance
❌ Parking fees and tickets
❌ Gas
❌ Depreciation losses
❌ DMV visits
❌ Winter tires or oil changes
The hidden benefits nobody talks about
Time is money
In 2022, the average American spent 60 minutes per day driving. That's 365 hours per year you could be:
Working (at $30/hour, that's $10,950 in potential income)
Relaxing and reducing stress
Catching up on emails, calls with friends, or episodes of your favorite podcast
Flexibility without commitment
Need a ride to the airport at 4 AM? Done. Want to bar hop responsibly on Saturday? Easy. No designated driver debates, no parking struggles, no car loans tying you down for years.
Making the switch: Your 30-day challenge
Not ready to give up your car completely? Try this:
Week 1-2: Use Lyft for all evening and weekend activities.
Week 3: Add in Lyft for your daily commute.
Week 4: Calculate how much you actually used your car outside of rideshare.
You might just discover you don’t need a second car – or even realize that you needed your primary car way less than expected.
Smart ways to maximize your rideshare budget
Price Lock: Lock in your price for regular commutes.
United MileagePlus: Almost every ride earns airline miles.
Employer programs: Check if your company offers Lyft commute benefits.
The bottom line
For many Americans, rideshare may offer a financially smarter alternative. Making the switch could help fund your retirement, pay off student loans, or finally allow you to take that dream vacation. Ready to run your own numbers? Download Lyft and try it out for yourself.