Here's Why Minivans Are So Expensive -- and How You Can Save

When I found out I was having twins in 2014, one of my first reactions was, "How on earth am I going to afford the cost of an extra child?" A close follow-up reaction was, "Well, guess I'm going to need a minivan."

See, at the time, I already had a toddler, and having twins meant I would need a car capable of fitting three car seats. It's really tough (if not impossible) to cram three of those into a single row of seats, so parents with more than two children in car seats at the same time often need a minivan to fit everyone in safely.

That was the situation I was in, and at the time, car prices were a lot less expensive than what they are today. Thankfully, we were able to trade in my old car to avoid having to raid our savings account for a down payment. But we still wound up spending way more on a minivan than we wanted to -- even though we didn't choose the most expensive one out there.

If you need a minivan today, you may be in for a bit of sticker shock given that car prices are still pretty elevated. But there's a reason minivans cost what they do.

Why you might pay more for a minivan

The cost of a minivan will hinge on the model you get and the added features you opt to pay for. Kelley Blue Book says the starting price on the 2024 Toyota Sienna is $39,080. For the Honda Odyssey, it's $39,635. But again, these are just starting prices -- not the price most people end up paying out the door.

So, why is there such a premium on minivans? A big part of it boils down to demand.

People who drive minivans tend to need minivans. That was my situation -- a sedan or even an SUV would not have accommodated three car seats when my kids were young. And while I could now get away with not having a minivan, even once your kids are older, it gets harder to cram a family of five into a two-row vehicle. That also gives you zero wiggle room to take another passenger.

Since dealerships know that many drivers buy minivans out of necessity more so than choice, they tend to take advantage of that. The result? Minivan owners often end up paying more.

Also, there aren't many options for buying a minivan like there are for other cars. As of 2021, there were only five minivan models on the market -- the Chrysler Pacifica, Chrysler Voyager, Honda Odyssey, Kia Carnival, and Toyota Sienna. And as of then, the Sienna and Odyssey together made up well over 50% of the market, according to Kelley Blue Book.

Any time there's a situation where demand for a given commodity exceeds the supply, that item's price has the potential to rise. Such tend to be the case with minivans.

Steps you can take to save money

If you have to drive a minivan -- or if you just plain want one for the extra room -- then there are ways you can reap some savings. First, resist the temptation to get one with all of the extra features. For many years, people managed to stay in their lanes without warning sounds going off. You can also rely on a standard heater to keep your car warm in the winter and avoid the extra expense of heated seats.

Secondly, shop around. Though there aren't many minivan models to choose from, the price of a given model can vary from one dealership to another. Incidentally, you also need to shop around for auto insurance to find the best coverage for your minivan.

Finally, if you can't talk your dealership down on price for a minivan, try to get it to throw in some money-saving extras, like free oil changes for a year or two or other discounts on maintenance. That won't change the cost of your car payments, but it could be helpful for your finances as you adjust to the cost of owning a minivan.