Owning Any Car Becomes Luxury in Major City

In the city, owning a private car has become unaffordable for many residents over the past two years as vehicle prices, new fees and limited parking increased overall costs.

Car dealers and city officials attribute higher sticker prices to global supply bottlenecks that raised production costs and to dealer inventories shifting toward higher-margin models. At the same time, the municipal government expanded registration fees, added emissions testing charges and raised workplace parking permit costs. Several central districts imposed stricter limits on on-street parking and increased fines for illegal parking.

Drivers and businesses report that higher purchase prices, larger monthly loan payments, rising insurance rates and scarce, costly parking combine to make ownership a significant financial commitment. Independent mechanics say they receive fewer routine-maintenance appointments but see higher repair bills per visit as older vehicles require more work.

“I used to think buying a small car would be simple,” recalled Maria Alvarez, a schoolteacher who chose to commute by electric scooter and transit. “When I added up the loan, insurance and a monthly garage fee, it was more than my rent increase.”

Ride-hailing firms report heavier demand during peak hours, and bike and scooter sharing operators record higher sign-ups, reflecting a shift toward lighter, lower-cost travel options. Private parking garages report near-capacity occupancy in some neighborhoods and have raised monthly fees, prompting more people to park at the city’s edge. Used-car dealers say inventories are shorter as owners hold on to vehicles they can still use, reducing supply for buyers.

Transport authorities increased registration surcharges targeted at older, higher-polluting cars and expanded paid-parking zones to address congestion and emissions. The city introduced incentives for electric scooters and bikes and expanded bus and metro services in several corridors.

Car finance firms report tighter lending standards and higher interest rates compared with two years ago, citing broader economic conditions and higher default risk on longer-term loans. Import duties on some models remain high, keeping many entry-level new cars more expensive than a decade ago. Some buyers are turning to informal markets for older vehicles, delaying purchases or subscribing to short-term car services offered by manufacturers and third parties.

Leila Chen, an urban planner, pointed out: “When parking is scarce and expensive, the cost of owning a car goes well beyond the purchase price.” Chen added that narrow streets and higher residential density without a matching increase in parking supply make building affordable parking costly.

Public transport ridership recovered unevenly after pandemic lockdowns, and many commuters combine public transit with private or shared modes for parts of their journeys. Micromobility options now have longer-range batteries, updated safety rules and more docking stations. Automakers and mobility startups have expanded subscription models and short-term rentals that let consumers use cars without full ownership.

Officials say the policy changes aim to reduce traffic and pollution, and they acknowledge that fees and parking limits have raised the effective cost of car ownership for many households.