What Is the Pink Tax and How It Hits Your Car Price

From sneaky dealership markups to inflated repair quotes, women often pay more for the same car — and it’s costing us big time.

Walk onto a dealership lot and smile politely. Congratulations, you may have just triggered a markup.

Our GoGoGirlGo survey found nearly two-thirds of women felt pushed toward higher payments or vague “monthly deals.” The stats don’t lie: Forbes reports women pay more for the same new car. From razors to rides, women pay more. Let’s break it down. 

The Pink Tax, Explained

The “pink tax” isn’t a government levy — it’s a gender-based price gap. It shows up everywhere, from personal care aisles to auto showrooms, when products or services marketed to women cost more than those aimed at men. The NYC Department of Consumer Affairs found an average 7% markup across women’s goods. And when that bias extends to big-ticket items like cars, the difference is measured in thousands, not cents.

At the Dealership: Markups That Hit Women Hard

Research from the University of Wisconsin–Madison shows women often face higher dealer “indirect financing” markups, paying up to 39% more in extreme cases. Forbes also found that women paid about $117 more for the same new car compared to men.

Financing: The Hidden Interest Rate Trap

Dealers frequently add a markup to the lender’s interest rate — and according to the UW–Madison study, women are more likely to get stuck with those higher rates. The result? Paying more in total interest, even when credit scores and loan terms are identical.

Repairs & Service: Different Quotes, Same Job

When it comes to repairs, small differences add up too. Forbes reported that women were quoted an average of $22 more for the same auto repair compared to men. Jerry.com found women’s average brake job quotes came in at $460.20, versus $458.70 for men — a small but consistent difference that compounds with every visit.

Insurance: Premiums That Don’t Always Add Up

Auto insurance pricing varies by state, but gender still plays a role. Forbes notes that depending on age, credit, and location, women can end up with higher premiums despite equal or better driving records.

What Our Survey Shows

In our GoGoGirlGo survey of women who bought cars in the past five years:

• 62% said they felt pressured to accept a higher monthly payment without explanation.

• 58% reported confusion around financing terms like APR and “dealer reserve.”

• 45% said they’ve received a repair quote they believed was inflated — and suspected a man would’ve been quoted less.

These aren’t isolated stories — they align with national research showing consistent, systemic cost differences for women in car ownership.

Why This Matters

A few extra dollars on a repair or a slightly higher rate on a loan might not seem like much, but across years of ownership, the pink tax adds up to real money. Think money that could’ve gone toward savings, travel, or your next upgrade — simply because of how the system treats women buyers.

How to Push Back

• Get multiple quotes. Whether for a loan, repair, or insurance, comparison shopping is your best defense.

• Ask for the “buy rate.” That’s the rate your lender offered — not the dealer’s markup.

• Negotiate with confidence. Knowing women are statistically offered worse deals is power.

• Speak the language. Don’t let jargon steer the deal — decode it.

• Bring data. Printed quotes or screenshots make it harder for anyone to overcharge.

• Talk about it. Sharing stories creates transparency — and pressure for change.