VIENNA, Va.–(BUSINESS WIRE)–Navy Federal Credit Union today released the latest iteration of its Cost of Car Ownership (COCO) Index, revealing a record-high in the cost of owning a vehicle. The COCO Index rose 4.7% in March, 5.5% in the past year, and 47.6% since January 2020. The latest increase is driven almost exclusively by a sharp increase in gasoline prices.
Gasoline prices climbed 21.2% month over month, adding a significant cost to household budgets. Auto repair costs also continue to increase. Using data from the Bureau of Labor Statistics, the COCO Index tracks 11 of the most significant individual expenses associated with owning and maintaining a vehicle.
As energy prices fluctuate and continue to shape transportation budgets, insights from the COCO Index provide important context for consumers navigating affordability challenges tied to commuting, daily travel and broader household spending.
“The Cost of Car Ownership Index soared to a record high in March, underscoring the squeeze so many Americans are facing financially right now,” said Heather Long, chief economist at Navy Federal Credit Union. “The 21% jump in gas prices in March was the largest factor leading to the new all-time high, but maintenance costs, repair costs and tires were all up around 1% as well during the month.”
“Car ownership costs have risen much faster than overall inflation and wages since January 2020. Navy Federal’s Cost of Car Ownership Index is up almost 48%, while wages have risen only 31.5% since 2020,” Long continued. “The biggest concern is there’s no relief on the horizon for car owners. Ending the war in Iran and re-opening the Strait of Hormuz are the only realistic ways to ease costs this year.”
These dynamics underscore the pressure transportation costs continue to place on household finances, even as other inflation-related pressures show signs of easing.
“Buying and owning a car today can feel more challenging than it has in years, but there is still a real opportunity for smart, informed buyers, and we’re here to guide our members every step of the way,” said Kevin Wince, vice president, consumer lending operations at Navy Federal. “Industry trends show that while costs have increased the market is beginning to stabilize. Vehicle inventories are improving and buyers are seeing more options than in recent years. At the same time, lenders and financial institutions are introducing more flexible solutions designed to meet consumers where they are.”
“Even in a higher cost environment, preparation and the right financial partner can make all the difference. We are seeing members succeed by planning, exploring both new and used options, and taking advantage of tools that put them in control. One excellent option at Navy Federal Credit Union is a Pre-approval loan. This allows you to shop like a cash buyer and have a leg up while negotiating,” Wince added.
The COCO Index uses January 2020 as the base benchmark (Index = 100) and compares trends in vehicle ownership costs against overall consumer inflation.
Navy Federal last released updated COCO Index data in November 2025. For more information on Navy Federal products and financial tools available to members, visit navyfederal.org.
About Navy Federal Credit Union: Established in 1933 with only seven members, Navy Federal now has the distinct honor of serving more than 15 million members globally and is the world’s largest credit union. As a member-owned and not-for-profit organization, Navy Federal always puts the financial needs of its members first. Membership is open to all Department of Defense and Coast Guard Active Duty, Veterans, civilian and contractor personnel, and their families. Navy Federal employs a workforce of over 25,000 and has a global network of more than 380 branches. Navy Federal is contracted to operate the Overseas Military Banking Program under the authority of the Department of Defense, which provides Active Duty military Servicemembers deployed overseas with access to some 60 branches and hundreds of ATMs spread across 10 countries and territories. For more information about Navy Federal Credit Union, visit navyfederal.org.
