Owning a car has never been cheap, but for many families, the monthly cost is quickly reaching a breaking point. According to LendingTree, the average new-car loan payment is now almost $750 per month, and that doesn't even include insurance, gas, and maintenance.
In a most recent blog, Suze Orman is urging families to take a hard look at whether they truly need every car they currently have — especially if money is tight.
Today's Best Finance Deals
Car Costs Are Up — And Climbing Higher
Orman pointed out that owning a single car now costs many households close to $1,000 a month. That figure includes the nearly $750 car payments and insurance costs that are now around $200 per month — up sharply from $130 back in 2020.
Don't Miss:
- Hasbro, MGM, and Skechers trust this AI marketing firm — Invest before it's too late.
- Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – with $1,000 you can invest at just $0.30/share!
Unfortunately, insurance costs may keep rising. Insurify reports that premiums could jump another 19% this year if proposed tariffs on imported parts and materials are approved. Since many cars sold in the U.S. include foreign-sourced components, higher repair and replacement costs could push premiums even higher.
These added expenses come at a time when many Americans are already struggling. In 2024, vehicle repossessions and car loan defaults hit their highest levels since the Great Recession, according to Cox Automotive.
Why Suze Orman Says It's Time to Rethink the Second Car
Given these trends, Orman suggests that families feeling the financial strain should consider a major shift: cutting down to just one car — or even going carless if possible.
“If your house is feeling the stress of car ownership, I think it's time for a major rethink," she writes. "Especially if your household has more than one car.”
Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share.
Orman challenges families to explore whether they really need multiple vehicles every day. Could one person work from home part of the week? Is carpooling with a coworker or neighbor an option? Could public transportation help fill in the gaps?
These questions may seem tough at first, but Orman emphasizes that it's worth having the conversation. "I appreciate what a lifestyle change this may be, but sticking with something just because it is what you are used to is not a good enough reason to keep two cars," she says.
The Potential Savings Are Substantial
Cutting out a second car could save families $500 to $1,000 or more per month, depending on how much they're currently spending. Even if you occasionally rent a car or rely on ride-sharing services, Orman believes the financial benefits still outweigh the inconvenience for many households.
See Also: Maximize saving for your retirement and cut down on taxes: Schedule your free call with a financial advisor to start your financial journey – no cost, no obligation.
She also encourages one-car families to go a step further and consider a car-free lifestyle, especially if they live in areas with reliable public transportation. Renting a vehicle for weekend errands or getaways may still cost less than owning and maintaining a car year-round.
Bottom Line: Rethink What You Really Need
As car ownership becomes more expensive, households may need to take a closer look at what's essential and what's just routine. While giving up a car may require some lifestyle adjustments, the monthly savings could offer much-needed breathing room.
"If you are feeling financial stress, how would you not jump at the chance to remove $1,000 or more in monthly spending?" Orman asks.
Read Next:
- Nancy Pelosi Invested $5 Million In An AI Company Last Year — Here's How You Can Invest In Multiple Pre-IPO AI Startups With Just $1,000.
- ‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share with a $1000 minimum.
Image: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
