The contract holders in your portfolio might be struggling to handle the financial component of that vehicle beyond just the monthly payment.

Navy Federal Credit Union recently released the latest iteration of its Cost of Car Ownership (COCO) Index, revealing a record-high in the cost of owning a vehicle.

The institution said the COCO Index rose 4.7% in March, 5.5% in the past year, and 47.6% since January 2020.

Analysts explained the latest increase is driven almost exclusively by a sharp increase in gasoline prices, which sat at an average of $4.02 per gallon, according to the latest U.S. data shared by AAA on Tuesday.

Navy Federal pointed out that gasoline prices climbed 21.2% month-over-month, adding a significant cost to household budgets.

Analysts added that 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, Navy Federal Credit Union chief economist Heather Long stated 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,” Long said in a news release. “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.”

Navy Federal also mentioned 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 of 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,” Wince added.

The COCO Index uses January 2020 as the base benchmark (index at 100) and compares trends in vehicle ownership costs against overall consumer inflation.