Navy Federal Credit Union released its latest Cost of Car Ownership (COCO) Index, a resource designed to help consumers better understand the changes in costs of vehicle ownership, including costs like gas, insurance, repairs and purchase prices.
From January 2020 to August 2025, car ownership costs — as measured by the COCO Index — have surged by 40.59%, outpacing the 24.79% rise in overall consumer prices (the Consumer Price Index) during the same period. More recently, from the end of 2024 through August 2025, car ownership costs increased 0.8%, compared to a 1.8% rise in prices for all goods and services. While the pace of increase for car ownership costs is currently slower than overall inflation, it remains close to the COCO Index’s all-time high.
Key findings from the August 2025 COCO Index reflect changes in car ownership costs from July to August 2025:
- New car prices increased by 0.28%
- Used car prices went up 1.04%
- Gas prices rose 1.91%
- Repair costs jumped 5.0%
“The cost of owning a car is rising again and is not far from the all-time high hit in January 2025,” said Heather Long, chief economist at Navy Federal Credit Union. “The American middle class is already frustrated with high prices, and they are likely to feel pinched even further in the next six months as more of the tariff costs are passed along to consumers. Already, the latest inflation data show that basic necessities for American life – food, gas, rent, clothing and car ownership – are all rising in cost.
“As inflation climbs, it’s eating into paychecks. This is why many Americans are shifting their spending to generic brands and bargain stores as they seek to make every dollar go as far as they can,” continued Long. “While auto insurance costs are finally cooling off, used car prices and auto repair prices are rising sharply as people try to look for cheaper ways to own cars and keep their current car going for longer. Both new and used car prices are almost certainly going to rise further in the coming months, putting more strain on middle and lower-income households.”
The COCO Index tracks 11 cost components associated with owning a car. The data comes from the Bureau of Labor Statistics, and the Index uses January 2020 as the base benchmark (Index = 100).
“Used car prices have jumped more than 6% compared to last year, showing just how competitive the market has become,” said Kevin Wince, vice president of consumer lending servicing, projects and fraud at Navy Federal. “What was once seen as the more affordable option is now stretching budgets for many buyers. This shift is making it harder for families to find good deals, which is why it’s important to plan ahead for one of life’s biggest purchases. Getting pre-approved for a loan gives buyers the advantage of shopping like a cash buyer, helping them move quickly and negotiate more effectively.
“Repair costs have also gone up 15% in the past year, making regular maintenance or surprise breakdowns more expensive than before,” warned Wince. “Checking car reliability reports before buying can help shoppers make smarter, more informed choices.”