(NewsNation) — Drivers got a bit of good news as gas prices dropped in January, but while pain at the pump may have eased, other car-related costs have risen.
January gas prices were down 80 cents from a peak in September 2023. However, prices are starting to tick up again as the price of oil rose.
Still, forecasters are optimistic that gas prices will continue a downward trend overall through 2024, despite turmoil in the Middle East that could impact the price of oil.
But filling the tank isn’t the only cost of car ownership. Prices for everything from parking to repairs to insurance have been on the rise.
Car insurance premiums were up 20.6% from January 2023 and repair costs also soared, with a fender bender setting drivers back 7.9% more than the previous year, according to the Bureau of Labor Statistics.
Total costs of car ownership for 2023 hit $12,182, compared to $10,728 in 2022, according to AAA. The average price of a new car in January hit $47,358, compared to $39,813 in January 2021.
On top of that, depreciation has increased, with AAA noting a car driven 15,000 miles in January 2023 losing $4,538 in value as compared to $3,656 in 2022.
The increased costs are leaving some car owners running out of options. The New York Federal Reserve showed 7.7% of auto loans transitioned into delinquency, a high point for the past 13 years.
