Survey Reveals Drivers Underestimate Annual Car Costs by Over $4,500
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 10 hours ago
0mins
Should l Buy SYF?
Source: Yahoo Finance
- Spending Discrepancy: Synchrony's survey indicates that drivers are spending $4,565 more annually than they expected, which could strain household budgets and affect spending in other categories.
- Major Expense Contributors: The survey reveals that gas and insurance are the largest annual expenses at $1,956 and $1,730 respectively, with maintenance and service costs also significantly exceeding expectations, impacting drivers' financial planning.
- Decline in Multicar Households: Rising vehicle prices and maintenance costs have led to 65% of respondents managing only one vehicle, reflecting a decrease in multicar households compared to 2023 census data.
- Increased Spending Among Youth: Millennials and Gen Z are the highest spenders on car maintenance and related expenses, averaging $10,101 and $9,984 respectively, highlighting the growing financial pressure on younger consumers.
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Analyst Views on SYF
Wall Street analysts forecast SYF stock price to rise
15 Analyst Rating
10 Buy
5 Hold
0 Sell
Moderate Buy
Current: 71.380
Low
83.00
Averages
94.60
High
101.00
Current: 71.380
Low
83.00
Averages
94.60
High
101.00
About SYF
Synchrony Financial is a consumer financial services company focused on delivering digitally enabled product suites. The Company provides a range of credit products through financing programs it has established with a diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers. It offers private label, dual card, co-brand, and general-purpose credit cards, as well as short- and long-term installment loans, and savings products through Synchrony Bank (the Bank). The Company primarily manages its credit products through five sales platforms such as Home & Auto, Digital, Diversified & Value, Health & Wellness and Lifestyle. The Bank offers directly to retail, affinity relationships and commercial customers, a range of deposit products, including certificates of deposit, individual retirement accounts (IRAs), money market accounts, savings accounts and sweep and affinity deposits.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Survey Reveals Drivers Underestimate Annual Car Costs by Over $4,500
- Spending Discrepancy: Synchrony's survey indicates that drivers are spending $4,565 more annually than they expected, which could strain household budgets and affect spending in other categories.
- Major Expense Contributors: The survey reveals that gas and insurance are the largest annual expenses at $1,956 and $1,730 respectively, with maintenance and service costs also significantly exceeding expectations, impacting drivers' financial planning.
- Decline in Multicar Households: Rising vehicle prices and maintenance costs have led to 65% of respondents managing only one vehicle, reflecting a decrease in multicar households compared to 2023 census data.
- Increased Spending Among Youth: Millennials and Gen Z are the highest spenders on car maintenance and related expenses, averaging $10,101 and $9,984 respectively, highlighting the growing financial pressure on younger consumers.
See More
Survey Reveals True Costs of Car Ownership Burdening Consumers
- Significant Spending Gap: Synchrony's survey reveals that car owners are spending $4,565 more annually than expected, totaling $7,303, which could increase household budget pressures and impact spending in other areas.
- Higher Burden on Young Drivers: Millennials and Gen Z report average annual expenses of $10,101 and $9,984 respectively, indicating that younger consumers face greater economic pressure from auto maintenance and related costs, potentially affecting their future purchasing decisions.
- Support Through Financing Solutions: The Synchrony Car Care Credit Card offers flexible financing options designed to help drivers manage routine maintenance and unexpected repair costs, thereby alleviating financial burdens and promoting better budget management.
- High Insurance Costs: The survey indicates that insurance is the largest annual expense for car owners at approximately $1,730, with other significant costs including maintenance, service, and tires, suggesting that rising expenses may compel consumers to reconsider their vehicle purchasing decisions.
See More
Helix Partners Acquires $6.97 Million Stake in Cinemark Holdings
- New Investment Move: On February 13, 2026, Helix Partners Management LP disclosed a new position by acquiring 300,000 shares of Cinemark Holdings, valued at approximately $6.97 million, indicating confidence in the company's potential turnaround.
- Ownership Analysis: This acquisition represents 2.34% of Helix Partners' 13F reportable AUM, highlighting its strategic positioning within a diversified investment portfolio.
- Company Financials: Cinemark reported $858 million in revenue and $51 million in net income for Q3 2026, and despite a 21.1% decline in stock price over the past year, its fundamentals suggest resilience amid challenges.
- Future Outlook: With the elimination of pandemic-related debt and a $300 million share repurchase program alongside a 12.5% dividend increase, investors should monitor whether Cinemark can leverage its improved financial health to generate sustainable cash flow.
See More
Credit Card Companies Face Bipartisan Pressure
- Political Pressure Intensifies: Amid persistent inflation, Trump and Sanders have found common ground in seeking to lower credit card annual percentage rates, with Trump proposing a 10% cap and Sanders advocating for a permanent 15% cap, potentially reshaping the profitability of credit card companies.
- Cautious Industry Response: Major credit card issuers like Capital One are in a holding pattern amidst political rhetoric, fearing that if a cap is implemented, they will be compelled to cut credit lines, adversely affecting credit access for lower-income households.
- Profitability at Risk: Analysts predict that a long-term rate cap could reduce Capital One's earnings per share by 25% or wipe them out entirely, as credit card operations account for approximately 74% of its total revenue, primarily derived from interest on customer balances.
- Acquisition Impact Significant: Capital One's $35 billion acquisition of Discover last year will be affected by any interest rate limits, as Discover's credit card balances will also be impacted, further diminishing Capital One's competitive edge, especially without a robust payment network.
See More
Latest Wall Street Rating Updates
- Coinbase Rating Maintained: Bernstein reiterates Coinbase as outperform, noting that despite Q4 revenue missing estimates by 3% and a 28% drop in adjusted EPS to $0.66, the stock remains undervalued, indicating long-term optimism.
- Instacart's Strong Performance: Barclays maintains an overweight rating on Instacart, highlighting its rare beat-and-raise earnings report in the internet earnings cycle, suggesting a unique advantage in a competitive market that may attract more investor interest.
- Airbnb Upgraded to Buy: Deutsche Bank upgrades Airbnb from hold to buy, stating that while it faces AI disruption risks, its unique supply chain offers more insulation compared to peers, which is likely to draw more investor attention.
- CrowdStrike's Attractive Valuation: HSBC upgrades CrowdStrike from hold to buy, citing attractive current valuation and projecting a non-GAAP EPS CAGR of 38.3% over FY26-29, indicating strong growth potential.
See More
Jim Cramer Comments on Synchrony Financial's Stock Outlook
- Investment Advice: Jim Cramer explicitly stated he does not want to own Synchrony Financial (SYF) and prefers Capital One (COF), indicating a lack of confidence in SYF that may influence investor decisions.
- Stock Price Dynamics: Cramer noted Capital One's stock has pulled back from $259 to $225, showcasing its attractiveness, while SYF's stock has declined by 1.1% since the comments were made, reflecting market concerns about its outlook.
- Share Repurchase Situation: Synchrony Financial has been retiring 7% of its shares annually, which somewhat boosts earnings per share; however, Cramer believes this is insufficient to offset its lack of investment appeal, potentially leading investors to reassess its value.
- Market Comparison: While SYF has potential in credit cards and healthcare financing, analysts believe it offers less upside compared to certain AI stocks, which may carry greater upside potential and less downside risk, affecting its position in investment portfolios.
See More
Survey Reveals Drivers Underestimate Annual Car Costs by Over $4,500
- Spending Discrepancy: Synchrony's survey indicates that drivers are spending $4,565 more annually than they expected, which could strain household budgets and affect spending in other categories.
- Major Expense Contributors: The survey reveals that gas and insurance are the largest annual expenses at $1,956 and $1,730 respectively, with maintenance and service costs also significantly exceeding expectations, impacting drivers' financial planning.
- Decline in Multicar Households: Rising vehicle prices and maintenance costs have led to 65% of respondents managing only one vehicle, reflecting a decrease in multicar households compared to 2023 census data.
- Increased Spending Among Youth: Millennials and Gen Z are the highest spenders on car maintenance and related expenses, averaging $10,101 and $9,984 respectively, highlighting the growing financial pressure on younger consumers.
See More
Survey Reveals True Costs of Car Ownership Burdening Consumers
- Significant Spending Gap: Synchrony's survey reveals that car owners are spending $4,565 more annually than expected, totaling $7,303, which could increase household budget pressures and impact spending in other areas.
- Higher Burden on Young Drivers: Millennials and Gen Z report average annual expenses of $10,101 and $9,984 respectively, indicating that younger consumers face greater economic pressure from auto maintenance and related costs, potentially affecting their future purchasing decisions.
- Support Through Financing Solutions: The Synchrony Car Care Credit Card offers flexible financing options designed to help drivers manage routine maintenance and unexpected repair costs, thereby alleviating financial burdens and promoting better budget management.
- High Insurance Costs: The survey indicates that insurance is the largest annual expense for car owners at approximately $1,730, with other significant costs including maintenance, service, and tires, suggesting that rising expenses may compel consumers to reconsider their vehicle purchasing decisions.
See More
Helix Partners Acquires $6.97 Million Stake in Cinemark Holdings
- New Investment Move: On February 13, 2026, Helix Partners Management LP disclosed a new position by acquiring 300,000 shares of Cinemark Holdings, valued at approximately $6.97 million, indicating confidence in the company's potential turnaround.
- Ownership Analysis: This acquisition represents 2.34% of Helix Partners' 13F reportable AUM, highlighting its strategic positioning within a diversified investment portfolio.
- Company Financials: Cinemark reported $858 million in revenue and $51 million in net income for Q3 2026, and despite a 21.1% decline in stock price over the past year, its fundamentals suggest resilience amid challenges.
- Future Outlook: With the elimination of pandemic-related debt and a $300 million share repurchase program alongside a 12.5% dividend increase, investors should monitor whether Cinemark can leverage its improved financial health to generate sustainable cash flow.
See More
Credit Card Companies Face Bipartisan Pressure
- Political Pressure Intensifies: Amid persistent inflation, Trump and Sanders have found common ground in seeking to lower credit card annual percentage rates, with Trump proposing a 10% cap and Sanders advocating for a permanent 15% cap, potentially reshaping the profitability of credit card companies.
- Cautious Industry Response: Major credit card issuers like Capital One are in a holding pattern amidst political rhetoric, fearing that if a cap is implemented, they will be compelled to cut credit lines, adversely affecting credit access for lower-income households.
- Profitability at Risk: Analysts predict that a long-term rate cap could reduce Capital One's earnings per share by 25% or wipe them out entirely, as credit card operations account for approximately 74% of its total revenue, primarily derived from interest on customer balances.
- Acquisition Impact Significant: Capital One's $35 billion acquisition of Discover last year will be affected by any interest rate limits, as Discover's credit card balances will also be impacted, further diminishing Capital One's competitive edge, especially without a robust payment network.
See More
Latest Wall Street Rating Updates
- Coinbase Rating Maintained: Bernstein reiterates Coinbase as outperform, noting that despite Q4 revenue missing estimates by 3% and a 28% drop in adjusted EPS to $0.66, the stock remains undervalued, indicating long-term optimism.
- Instacart's Strong Performance: Barclays maintains an overweight rating on Instacart, highlighting its rare beat-and-raise earnings report in the internet earnings cycle, suggesting a unique advantage in a competitive market that may attract more investor interest.
- Airbnb Upgraded to Buy: Deutsche Bank upgrades Airbnb from hold to buy, stating that while it faces AI disruption risks, its unique supply chain offers more insulation compared to peers, which is likely to draw more investor attention.
- CrowdStrike's Attractive Valuation: HSBC upgrades CrowdStrike from hold to buy, citing attractive current valuation and projecting a non-GAAP EPS CAGR of 38.3% over FY26-29, indicating strong growth potential.
See More
Jim Cramer Comments on Synchrony Financial's Stock Outlook
- Investment Advice: Jim Cramer explicitly stated he does not want to own Synchrony Financial (SYF) and prefers Capital One (COF), indicating a lack of confidence in SYF that may influence investor decisions.
- Stock Price Dynamics: Cramer noted Capital One's stock has pulled back from $259 to $225, showcasing its attractiveness, while SYF's stock has declined by 1.1% since the comments were made, reflecting market concerns about its outlook.
- Share Repurchase Situation: Synchrony Financial has been retiring 7% of its shares annually, which somewhat boosts earnings per share; however, Cramer believes this is insufficient to offset its lack of investment appeal, potentially leading investors to reassess its value.
- Market Comparison: While SYF has potential in credit cards and healthcare financing, analysts believe it offers less upside compared to certain AI stocks, which may carry greater upside potential and less downside risk, affecting its position in investment portfolios.
See More
