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Dallas was built for drivers, but rising insurance rates, expensive vehicles and higher fuel costs are making car ownership increasingly expensive.\u00a0<\/p>\n
Smiley N. Pool\/The Dallas Morning News<\/p>\n
Despite millions of dollars invested in public transportation over the past few years, Dallas is still a car-centric city. Much of the major infrastructure in the city, such as the toll roads and highways, are based on getting around via car. For some folks, public transportation is only accessible by car.\u00a0<\/p>\n
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Because Dallas and the surrounding suburbs are largely car-dependent, owning a vehicle isn\u2019t optional. So, how much does it cost to own one here?<\/p>\n
The North Central Texas Council of Governments estimates the average North Texas household spends approximately $15,000 per year on transportation. Two of the biggest recurring expenses are monthly car payments and insurance. According to the Texas Department of Insurance, premiums in the state have risen over the past five years because claim costs have increased and vehicles have become more expensive.<\/p>\n
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\u201cPersonal auto insurance rates went up in 2022 and 2023 because car repair and replacement costs, and bodily injury expenses all increased,\u201d said Michele Greer, communications director for the Texas Department of Insurance. \u201cCar prices also rose significantly. This requires drivers to purchase more insurance to cover the value of their cars.\u201d<\/p>\n
As of May, the new average vehicle transaction price is $49,220, according to Kelley Blue Book<\/a>. U.S. Census Bureau American Community Survey data <\/a>estimates the salary per capita in Dallas County is about $43,000 per year.\u00a0<\/p>\n “Some areas may have higher rates of unemployment or loan defaults that increase risks for lenders, and there can also be differences in state regulations, foreclosure processes, and even competition among local lenders,” said Ben Luthi, a personal finance expert and writer. “All that said, you likely won’t see massive variations because the prime rate has far more influence than regional impacts.”<\/p>\n Interest rates for a car loan can range from 5-16%<\/a> depending on a person\u2019s credit score and whether it’s a new or used car. New car loans come with lower interest rates, but can result in higher monthly payments. According to Experian<\/a> data, consumers are opting for longer loan periods to have smaller, more maintainable monthly payments.\u00a0<\/p>\n Article continues below this ad<\/p>\n Other monthly car expenses include gas and tolls.<\/p>\n