Richmond drivers squeezed by rising car ownership costs
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Illustration: Sarah Grillo/Axios
Even if you put aside gas prices for the moment, car ownership has gotten a lot more expensive in recent years.
Why it matters: Despite Richmond's free bus service, ample bike lanes and ever-improving pedestrian infrastructure, most locals still rely on cars, making rising ownership costs hard to avoid.
By the numbers: The average monthly payment for a new car in Virginia is now $637, according to new data from car research site Edmunds.
- For an old one, it's $525.
- And Virginians buying a new truck can expect to pay an average of $908.
The big picture: Vehicle sticker prices have been climbing for years with many popular models now thousands of dollars more than they were a few years ago, Axios' Joann Muller reports.
- The average cost of a new vehicle nationwide hit a record high of $43,899 in the first quarter of the year, up by more than $2,000 since the same time last year, per Edmunds.
- As a result, car buyers are stretching their loan terms longer, to an average of nearly six years.
Stunning stat: Even with those longer terms, 20% of new car buyers now pay $1,000 a month — or more, per Edmunds.
The situation isn't much better for used cars.
- Inventory on used car lots fell to 40 days' supply in March, its lowest point this year, and though it rebounded slightly in April, it remains tight.
- That's pushing those prices up. The average price for a used vehicle in Q1 was $29,314, per Edmunds.
Meanwhile, insurance premiums and repair costs are up 55% since the pandemic, according to the National Automobile Dealers Association.
- If you add up gas prices, insurance, repairs and the sticker prices of cars, the cost of owning one is up 47% since 2020, according to Navy Federal Credit Union.
- That's risen faster than both inflation and wages.
Threat level: Rising car costs are causing more Americans to fall behind on their car payments or stay out of the market.
- The average age of vehicles on the road hit a record high of 13 years last year.
Yes, but: There's a silver lining for used-car owners. They're retaining more of their 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's next: Save the date for June 5. That's when car tax payments — you know, the tax you pay based on the value of your car — are due for Richmond, Chesterfield and Henrico residents.