Car ownership has become a growing financial challenge for many Americans, with total costs rising faster than general inflation in recent years. According to the analysis completed by Navy Federal Credit Union, the cost of owning a car is up over 40% since January 2020.
For pizza delivery drivers who use their personal vehicles on the job, these increased expenses often cut their wages. Below is a breakdown of the major cost categories and how they have become more expensive in recent years.
Car Purchase Price
According to Kelley Blue Book, new vehicle prices have reached record highs, with the average now approaching $50,000, and used car prices have also climbed, averaging over $25,000. These increases result from supply chain disruptions, the production of larger and more feature-rich models, and manufacturers prioritizing higher-margin vehicles. Delivery drivers often face extra difficulty replacing high-mileage work cars, leading many to keep older vehicles on the road longer. It’s hard to buy a car now that doesn’t come with several arguably unnecessary bells and whistles.
Gas Costs
Fuel prices continue to fluctuate and remain elevated compared to pre-pandemic levels in many areas in the U.S. Delivery work involves substantially more driving than a typical commute, so these costs add up quickly.
Insurance
Auto insurance premiums have skyrocketed as of October 2025, insurance prices were up 55% since February 2020, according to the Bureau of Labor Statistics. The increase is apparently due to higher repair costs, higher medical costs after accidents, more expensive car parts, and a rise in insurance claims. High-mileage drivers, including those in pizza delivery, frequently see even steeper rate hikes because insurers view frequent road time as higher risk.
Auto Repair and Maintenance
Repair and maintenance costs have outpaced general inflation, with parts and labor both becoming more expensive. As noted in NPR’s coverage of car ownership trends, these increases are especially noticeable as drivers keep vehicles longer. Delivery drivers who accumulate heavy daily mileage experience faster wear on brakes, tires, suspension, and engines.
The Impact on Delivery Drivers
Pizza delivery drivers are hit particularly hard by these trends. High weekly mileage accelerates every category of expense. If your employer is not ensuring that all of these costs are captured by their vehicle expense reimbursement policy, you should contact our office to discuss whether the vehicle expenses you are incurring on your employer’s behalf might have pushed your effective hourly wage rate below minimum wage.
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