Have 2 Cars in America? Add Up These 6 Expenses and See What They’re Really Costing You
Having two cars in one household is common for families in America, especially when two adults work different schedules. But when people calculate what their vehicles cost, they often look only at the monthly loan payments. Once insurance, fuel, maintenance and other expenses are included, two cars can take a surprisingly large amount from the household budget.
1. Car payments. Suppose your first vehicle has a $650 monthly payment and the second costs $500. That’s $1,150 per month, or $13,800 per year, just to service the two auto loans. If one or both vehicles are already paid off, this category may be much smaller—but the other ownership expenses don’t disappear.
2. Car insurance. Imagine the household pays $280 per month for one vehicle and $220 for the other. That’s another $500 per month, or $6,000 per year. Actual premiums can vary substantially based on location, drivers, vehicles, coverage and other rating factors permitted under applicable state rules.
3. Fuel. Two vehicles can consume hundreds of dollars in gasoline every month, particularly when both are used for commuting. If the household averages $200 per vehicle, that’s $400 per month and $4,800 per year. Longer commutes or larger vehicles could produce a very different number.
4. Maintenance and repairs. Oil changes, tires, brakes, inspections and unexpected repairs don’t necessarily arrive as predictable monthly bills. But if you average $150 per month per vehicle for maintenance and future repairs, that’s another $300 per month—or $3,600 annually set aside for this category.
5. Parking and tolls. This expense can be especially noticeable for households around major metropolitan areas. If parking, tolls and similar driving expenses average $250 per month across both vehicles, that’s $3,000 over a year. Your actual number could be much lower or considerably higher depending on where and how you drive.
6. Registration, taxes and other ownership costs. Registration fees and other vehicle-related expenses may arrive only once or twice a year, which makes them easy to forget in a monthly budget. If those irregular costs total $1,200 annually across both vehicles, that’s equivalent to another $100 per month when you plan for them throughout the year.
Now combine the hypothetical numbers: $1,150 for payments, $500 for insurance, $400 for fuel, $300 for maintenance, $250 for parking and tolls, and $100 for other ownership expenses. That’s approximately $2,700 per month, or $32,400 per year devoted to two vehicles. And this simplified calculation doesn’t attempt to measure depreciation—the loss in vehicle value over time.
The useful question isn’t simply whether your family can make both car payments this month. Calculate what the vehicles cost over an entire year and compare that amount with your take-home income and savings. If two cars cost $32,400 annually while the household saves only $5,000, reviewing the transportation budget could reveal where a significant portion of the family’s income is going.
Disclaimer: This article is for general educational purposes only and is not personalized financial, insurance or automotive advice. Vehicle costs vary substantially by location, vehicle, driver, financing terms and usage. All dollar amounts are hypothetical examples.