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How inflation, rising gas prices are affecting the cost of buying, owning and maintaining cars

SAN FRANCISCO (KGO) – New cars are in high demand these days, up more than 12% from last year at this time. Used car prices are growing even faster, with prices up more than 40% from a year ago. Buying a car can be the easy part; Owning, driving and maintaining one will also cost you a lot of money.

The website FinanceBuzz looked at how much we pay for gas by state.

Finance buzz’s Rebecca Wright said: “Drivers in your area can spend more than 3% of their monthly income on gas. “SUV drivers or pickup truck drivers, they make up 4.6 percent of monthly income, it’s crazy.”

Vallejo resident Rebecca Fisher agrees with that assessment. She and her husband are spending more on gas than they used to.

RELATED: Gas prices hit all-time average in Bay Area, AAA reports

“Last month alone, I paid $600, and that’s when my husband works from home three days a week,” says Rebecca Fisher.

And what’s even better – California drivers can count themselves lucky. They spend more on gas at the pump, but it’s usually a smaller portion of their budget than people living in other states.

“It’s surprising that California isn’t actually in the top 10 states that are spending the most percentage of their income relative to gas prices,” said Rebecca Wright of Finance Buzz.

People living in the southeast earn less and drive farther, making gas a larger share of their budgets – around 5%.

VIDEO: Governor Newsom offers $400 discount to all car owners in CA; Free public transportation for 3 months

Now let’s talk about auto insurance.

Bankrate.com has looked at auto insurance pricing and says this is a flying cost in sight.

Bankrate’s Sarah Foster said: “You know that’s an example of hidden inflation here, because if it becomes more expensive to pay for a new car after an accident or to repair your car, it all leads to your insurance getting more and more expensive, and we’re starting to see that now. “

RELATED: 1 gallon price of gas will get you ‘basically anywhere’ in the Bay Area on BART, official says

How much more? In California, again, we pay more upfront, but because our median income is higher and state regulations control pricing, the budget is less constrained than in the states. other.

“Although drivers are spending 1.9 per cent less of their annual income on car insurance,” said Sarah Foster. . “

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