Driving in Mass. is getting wildly expensive
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Illustration: Sarah Grillo/Axios
Even setting aside gas prices, owning a car in Massachusetts has gotten dramatically more expensive in recent years.
Why it matters: Despite MBTA buses, subways, trams and commuter rail — and ever-improving bike infrastructure — most Massachusetts locals still rely on cars. That makes rising ownership costs hard to avoid.
Driving the news: The average monthly payment for a new vehicle in Massachusetts is now $699, according to new state-level data from Edmunds.
- For a used car, the average monthly payment in the Bay State is $511.
Nationwide, the average amount financed for a new vehicle climbed to a record $43,899 in the first quarter of the year.
- Extended 84-month or longer loans now make up nearly 23% of financed new-car purchases as buyers stretch their terms to manage these soaring costs.
- Vehicle sticker prices have been climbing for years, with 20% of financed new car buyers now committing to payments of $1,000 a month or more.
- The situation isn't much better for used cars, where the national average amount financed in Q1 reached $29,314.
Meanwhile, insurance premiums and repair costs are up 55% since the pandemic, per the National Automobile Dealers Association.
- If you add up gas, insurance, repairs and sticker prices, ownership costs are up 47% since 2020, according to the Navy Federal Credit Union.
Threat level: Rising car costs are causing more Americans to fall behind on their auto loans or stay out of the market entirely.
- The average age of vehicles on the road hit a record high of 13 years last year.
There is a silver lining for used-car owners who are retaining more of their vehicle's value for longer, according to CarFax.com.
- So if you can swing the payment for a new car, you'll likely be able to sell your old beater for more than you would have a few years ago.
What we're watching: Keep an eye out for your motor vehicle excise tax bill if you haven't already received it.
- Massachusetts municipalities typically send these annual vehicle value taxes in the early spring.