The Real Cost of Owning a Car Depending on Where You Live
Car ownership can be quite expensive, besides the cost of the vehicle itself. Taxes, property fees, gasoline, and other costs add up to quite a lot, and these costs vary depending on where you live. In a recent study, GOBankingRates ranked the most and least expensive states in terms of car ownership.
To get their numbers, they researched and tracked the cost of buying and owning a car over three years in every state (and the District of Columbia). They explain:
Assuming that all US residents pay an average transaction price of $ 33,543 (according to Kelly’s Blue Book), the results show that, in addition to paying for cars, American car owners will pay an average of $ 11,227 for buying and owning a car over the course of three years. This amount includes:
- car sales tax and ownership fees (referred to in this study as “one-time purchase costs”)
- registration fees, car insurance, gasoline and vehicle maintenance costs (referred to as “annual cost of ownership and use”)
But costs vary greatly from state to state. In fact, depending on where you live, your state can add up to $ 7,217 to the cost of buying, maintaining, and owning a car for three years.
New Hampshire is the cheapest state to own a car, with a total additional cost of $ 8,098 over three years. GBR explains that the state does not levy a sales tax on cars, so it saves a little, but they also have low insurance premiums and low maintenance and repair costs. Michigan was the most expensive state to own a car, with a total cost of $ 15,315. Insurance is the biggest culprit here; on average, drivers pay $ 1,413 more than the national average.
Here are a few more states on their list, including the total additional cost:
California: $ 14,452
One-Time Purchase: $ 2,116, Annual Ownership and Use: $ 4,112.
New Jersey: $ 13,484
One-Time Purchase: $ 2408, Annual Ownership and Use: $ 3692.
Texas: $ 11,673
One-Time Purchase: $ 2,129, Annual Ownership and Use: $ 3,181.
To see the full list, go to their post at the link below.
Most (and least expensive) states to own a car | GOBankingRates