Having a car on campus during college might seem like a convenience, but it can become a massive financial burden. If you’re considering driving your own vehicle while earning your degree, it’s crucial to understand the full cost. For most students, bringing a car to college drains money and adds avoidable stress.
AAA estimates it costs nearly $8,900 per year to own and operate a midsize sedan driven 15,000 miles annually. Even driving just 10,000 miles can cost around $6,000 annually, or $500 per month. And if you’re financing that car? Your monthly car note is on top of those costs.
That “affordable” car payment advertised by dealers is just one piece of the puzzle. According to John Nielsen, Managing Director at AAA, “The true cost of vehicle ownership involves more than the sticker price and what you pay at the pump.”
What Car Costs Really Include
The total cost of car ownership factors in:
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Fuel and maintenance
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Tires and repairs
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Depreciation
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Insurance premiums
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Registration, taxes, and licensing fees
To see your own estimated vehicle costs, AAA’s Your Driving Costs brochure includes a worksheet tailored to your location and vehicle type.
Hidden Cost #1: Expensive Campus Parking Fees
Even if you’re willing to shoulder the monthly cost of owning a car, parking on campus presents a separate—and hefty—expense.
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Average annual campus parking fee: $500 to $1,000
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Low-end example: Buffalo State University at $70/year
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Sneaky fees: Permit costs, commuter vs. overnight fees, booting, and towing
Most colleges rake in millions annually from parking fees. According to the National Parking Association, the average college earns $635 per parking space, generating $4–5 million in yearly parking revenue.
Loyola Marymount’s Pricey Policy
In a 2014 policy shift, Loyola Marymount University began charging $290 per semester for all students taking seven or more credit hours—regardless of car ownership. Opt-out procedures were required, or students were charged $335 without refund eligibility.
Many schools also charge $50–$150 for boot or tow fees if tickets go unpaid. Parking illegally? That fine might soar to $300 or more.
Better Alternatives to Having a Car on Campus
The good news? There are plenty of cheaper, smarter ways to get around while in college.
1. Use Public Transit
Most colleges and cities offer student discounts on buses, subways, and light rail systems. Monthly transit passes are often subsidized through your student fees.
2. Take Advantage of Campus Shuttles
Large universities like Emory and UC Berkeley offer free campus transportation to help students navigate large or multi-campus environments.
3. Try Car-Sharing Services
Platforms like Zipcar and UhaulCarShare offer vehicles on-demand for short-term use. Rates start at around $5/hour plus mileage, ideal for the occasional off-campus errand or grocery run.
4. Carpool With Friends
Got classmates with cars? Hitching rides to stores or off-campus activities can save you significant money compared to solo ownership.
5. Ride a Bike
Many schools promote cycling through:
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Free bike giveaways (like at the University of New England)
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More bike racks and maintenance stations
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Subsidized bike-share memberships
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Improved biking paths and infrastructure
At the University of Wisconsin-Madison, 22% of students bike to class in fair weather.
The Growing Parking Crisis on Campuses
A recent U.S. News and World Report study found that 48% of students at reporting colleges have cars on campus. Some commuter schools report car usage over 90%.
But some prestigious schools like Georgetown University and Polytechnic Institute of NYU have zero student vehicles on campus.
The demand for parking has created a crisis at many colleges, leading to more fees, limited space, and competition for permits. In response, many schools now offer:
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Walking path development
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Fare-free transit access
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Carpooling initiatives
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Online classes to reduce commuting needs
If You Must Have a Car
If you truly need a car—due to commuting, family obligations, or off-campus work—opt for a fuel-efficient model and:
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Limit mileage to reduce gas and wear
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Ask your insurance company about discounts for low-use vehicles
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Research campus parking options thoroughly to avoid surprise charges
Final Thoughts: Do You Really Need a Car?
When you total up gas, maintenance, insurance, and parking, having a car on campus can easily exceed $6,000 to $9,000 per year. For most students, that money could be better spent—or saved.
Choosing to go without a car not only saves you financially, but also eliminates the headaches of parking tickets, traffic, and costly upkeep. With today’s transportation alternatives, leaving your car at home might just be the smartest college decision you make.
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College student weighing the costs of owning a car on campus versus alternative transport options
FAQs: Having a Car on Campus in College
How much does it really cost to have a car on campus?
On average, maintaining a car while in college can cost $6,000–$9,000 per year when you factor in fuel, insurance, maintenance, and campus parking fees.
Are college parking fees really that expensive?
Yes. Most colleges charge between $500 and $1,000 annually for on-campus parking. Some schools even impose fees on students who don’t drive unless they actively opt out.
What are the best alternatives to owning a car in college?
Public transportation, campus shuttle services, car-sharing programs like Zipcar, and biking are all cost-effective and convenient alternatives.
Can I save money with a car-sharing service?
Absolutely. Services like Zipcar can cost as little as $40–$50 per month for occasional use, a fraction of the cost of owning a vehicle full-time.
What if I need a car for a part-time job off campus?
Try carpooling, using public transportation, or scheduling shared rides. If regular driving is a must, opt for a fuel-efficient vehicle and minimize usage to reduce costs.
