Transit Saves Households Over $14,000 a Year
Owners weighing whether to keep or sell a car can compare its full annual cost against local transit fares.
Updated on Nov. 3, 2026 in Buying/Selling
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Are rising car costs making you more likely to use public transit?
The American Public Transportation Association published a brief comparing the costs of riding transit and owning a car, finding households that use transit can save more than $14,000 a year on average. The analysis accounts for parking, maintenance, depreciation, registration fees, and insurance, and applies to households weighing whether to keep a car.
Why it matters
Vehicle prices have climbed sharply since 2019, with new cars now averaging more than $50,000 and used cars more than $32,000, which makes the fixed cost of owning a vehicle a larger share of household budgets. The comparison arrives as Congress negotiates the next transportation funding package.
Average monthly transit savings range from $1,029 in Atlanta to $1,536 in San Francisco, and transit fares have mostly stayed the same since 2022. The national average gas price is $4.22 per gallon according to AAA.
The players
American Public Transportation Association
A national trade group representing public transit agencies, transit operators, and the companies that supply them.
AAA
The American Automobile Association, a motoring organization that publishes national average fuel prices and driver-cost data.
The details
The APTA analysis sets the full cost of riding transit against the full cost of owning and operating a car, counting parking, maintenance, depreciation, registration fees, and insurance on the driving side. Because the comparison includes depreciation, it reflects the steep rise in purchase prices since 2019 as well as recurring operating costs. Transit fares have held roughly flat over the same period, which widens the gap between the two options. The brief reports averages, so an individual household's results will depend on how far it drives and where it lives.
Timeline
Since 2019: new and used car prices have risen 36 percent and 60 percent respectively.
Since 2022: transit fares have mostly remained unchanged.
November 3, 2026: APTA published the transit-versus-driving cost brief.
The Home Front
Vehicle prices have risen 36 percent for new cars and 60 percent for used cars since 2019, a shift that has pushed ownership costs higher for many households. The transit comparison places car ownership alongside the broader household budget pressures that have followed those price increases.
If you own a car, total up parking, insurance, registration, maintenance, and depreciation for one year to compare against transit fares in your area. Use that figure when deciding whether to replace, keep, or sell a vehicle.
The takeaway
Owning a car now carries a larger fixed cost than many households have budgeted for, so run the full annual figure before your next purchase or sale. Keep a record of parking, insurance, and maintenance costs to make the comparison clear.
Further reading
For more on how vehicle costs shape household choices, explore the Buying/Selling section.
Source note: This article includes information reported by Governing.
Live Poll
Are rising car costs making you more likely to use public transit?
