There’s a financial crisis hiding in plain sight: the American household vehicle fleet. Families are hemorrhaging money through car payments, insurance, fuel, maintenance, depreciation, parking, and registration. In many cases, this adds up to more than a family’s annual savings—or the cost of sending a child to college every four years.

Car ownership is nearly universal in the U.S., with 92% of households owning at least one vehicle. About 37% own two cars, and 22% own three or more. In 2023, the average annual cost to own and operate a new vehicle climbed to $12,182. For households with two cars, that’s nearly $25,000 per year—a recurring expense that too often escapes scrutiny.