It's gotten more expensive to own a car in North Carolina
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Illustration: Sarah Grillo/Axios
Even if you put aside rising gas prices for the moment, car ownership in North Carolina has gotten a lot more expensive in recent years.
Why it matters: For the majority of us in the Triangle, a car is necessary for getting to work and picking up groceries, making the price of car ownership hard to avoid.
- Former Raleigh Mayor Mary-Ann Baldwin often cited the statistic that it cost a Raleigh resident around $10,000 a year to own a car when advocating for iniciatives like bus-rapid transit.
Driving the news: The average monthly car payment for a new vehicle in North Carolina is now $742, according to new data from car research site Edmunds.
- For a used car, the average monthly payment in the state is $590.
Zoom in: The higher monthly payments are being driven by several factors.
- But the two biggest are high sticker prices — with many popular models now thousands of dollars more than they were a few years ago — and higher interest rates, Axios reported.
- It doesn't stop there, though. Insurance premiums and repair costs are up 55% since the pandemic, according to the National Automobile Dealers Association.
The big picture: Add up gas prices, insurance, repairs and the sticker prices of cars and the cost of owning one is up 47% since 2020, according to Navy Federal Credit Union. That's faster than both inflation and wages have risen.
- It's causing more Americans to fall behind on their car payments or stay out of the market altogether. The average age of vehicles on the road hit a record high of 13 years last year.
Between the lines: And yet, demand for cars still appears strong.
- Inventory on used car lots fell to 40 days' supply in March, its lowest point this year, signaling healthy demand despite used cars hitting their highest prices in three years.
- Surveys show that American car buyers still view having a car as non-negotiable, with 71% of people saying they would sacrifice other budget items to maintain access to a car.
State of play: In reaction to rising costs, North Carolina moved to end emissions testing for cars in most counties — a request the EPA recently approved despite pushback from environmental groups.
- The EPA proposal would eliminate annual emissions inspections for drivers in Wake, Durham, Johnston and 16 other counties when they renew their registrations.
Go deeper: Rising car expenses are pushing some Americans to rely on Uber while hoping their old vehicles keep going. (New York Times)