Commuting costs: How a commute affects your finances

With most COVID-19 restrictions in the rearview mirror, many people are once again commuting to work on a hybrid or daily schedule. This leaves American workers stuck behind the wheel for an average of 26.8 minutes each way, according to data from the U.S Census Bureau — up from 26.4 minutes in 2022.

With more minutes clocked in the car to and from the office, your vehicle is likely working overtime — especially following the pandemic, when many cars sat idle gathering dust. The added expense of maintenance and gasoline on top of current high auto loan interest rates might be making your vehicle more expensive than you anticipate.

Commute cost statistics

Remote work preferences

For some drivers, the additional cost of commuting can nudge them toward one job over another. It has even pushed 64 percent of Americans to prefer a fully remote schedule and 68 percent prefer a hybrid schedule, according to Bankrate’s Worker Preferences Survey. Many workers also consider the drive to and from work a major pain point, so much so that 78 percent of workers would be willing to make a sacrifice to work remotely, such as changing jobs, working off-peak hours or taking a pay cut.

Skipping a commute, or at least commuting fewer days per week, can equal big savings. An April 2024 report by the U.S. Career Institute found that workers on a hybrid schedule could save $6,000 per year on various costs — including those for an in-office wardrobe, lunches and coffee breaks — in addition to commuting expenses. Full-time remote workers could save as much as $12,000, which could be a big factor when considering job opportunities and compensation packages.

In addition to the expenses of coming into the office, job seekers might have to explore taking out an auto loan to finance their ride to work, a choice fully-remote workers might not have to make. With interest rates and monthly payments at a current high, a commute may affect workers’ lives more than just their 30-minute trip to the office.

How much do workers prioritize flexibility?

Nearly 60 percent of the remote workforce considers their commute-free schedule to be a top perk of their job, according to the April 2024 Career Institute report. Hybrid and remote workers value reduced costs and more flexibility in terms of scheduling.

But with many companies ordering a return to office, more and more workers are faced with the reality that commuting is back in the cards. Whether you’ll be back in person one day a week or commuting more frequently, understanding the additional costs are just as important as polishing your resume.

For example, choosing a job close to home that offers a hybrid work model might make sense if you are focused on keeping your car-related bills low. With this in mind, it is unsurprising that work location and schedule flexibility have become top priorities for job seekers.

Financing a commute to work

Unlike a car you might use primarily for short drives or leisure time, purchasing a car for your long drives to work requires some extra thought. Consider the following tips when buying a commuter car.

1. Shop for reliability, not style

When buying a new vehicle, it is easy to get distracted by all the bells and whistles, but your drive to work doesn’t require an oversized truck or a sports car. Instead, reliability should be top of mind. Remember that your vehicle will likely depreciate much faster due to the miles you clock to and from work.

Here are some of Bankrate’s winners for best commuter cars. Monthly payments calculated based on an average auto loan rate of 6.84 percent and a 60-month term.

2. Budget for vehicle maintenance

The cost to pay off your auto loan each month is just one aspect of vehicle ownership you must consider. Drivers commuting to work can spend up to $458 on vehicle maintenance each year, according to Clever Real Estate. And while maintenance costs are unavoidable in keeping your vehicle safe to drive, choosing the right vehicle can help you save on trips to the mechanic.

The best way to choose the most reliable vehicle requires some research. Check out Kelley Blue Book for vehicle reviews and expected maintenance costs. Remember that luxury vehicles will likely have more expensive parts and overall costs, whereas more economy vehicles generally cost less. It is best to avoid vehicles with a history of issues or recalls, which can be found by checking the National Highway Traffic Safety Administration.

For drivers commuting an average of 41 miles a day Monday through Friday, that’s an extra 205 miles per week on top of normal driving patterns. And as your odometer increases, you get closer to having to pay for routine vehicle maintenance.

You can use the price of expected maintenance and regular repairs to inform your vehicle choice. Here’s a breakdown of the expected price for some of Bankrate’s most reliable vehicle picks in 2024 — with data from Kelley Blue Book’s five-year cost-to-own statistics.

3. Pay attention to fuel efficiency

The cost of filling your commuter car’s tank can add up. The current gas price national average is $3.12 per gallon in November 2024, according to AAA. The mpg, or miles per gallon, of your vehicle will have a big impact on how much you spend on gas.

Based on data from the U.S. Department of Energy, there is a clear winner between the Honda Civic and Ford F-150 when it comes to saving money at the pump. The 2024 Civic boasts a combined city/highway mpg of 35, going through 5.8 gallons per week to commute 200 miles. That adds up to about $18 in gas. The 2024 F-150, on the other hand, has combined city/highway mpg of 19, so drivers will burn through 10.6 gallons for the same 200 mile commute. That results in paying about $33 to fill the tank.

This simple exercise can be helpful when choosing one car over another. Pay attention to miles per gallon, the measure of fuel economy.

Beyond mpg, many drivers are moving toward driving a fully electric vehicle to avoid any trips to the gas station. Consider taking out a green auto loan to finance your vehicle and exploring available tax credits to save some extra cash.

4. Compare loan options

As with securing any financing, the key is shopping around and comparing several lenders. Outside of normal considerations like interest rate and loan terms, there are other specifics to focus on.

While you might change your playlist often when driving to work, the same flexibility cannot be said for loans. So when choosing the right loan for your commuter car, pay close attention to the length of your loan since it will determine how long until the vehicle will truly be yours — and how much you actually pay in interest.

In addition, be on the lookout for special features that lenders may offer, such as 24/7 support or apps. Tech like this can streamline your loan borrowing process.

Bottom line

Many workers can’t opt out of their commute, so it is important to make choices that make the daily ride enjoyable and affordable. When seeking the right vehicle, pay attention to total cost and how the car can improve your commute. Compare several lender options to ensure you sign off on the best loan terms and rates for your needs.