Buzz
The costs of owning a car go far beyond the initial price. Taxes, registration fees, fuel, and additional expenses all contribute significantly to the financial commitment, and these costs can differ greatly based on where you live. A recent study by GOBankingRates analyzed the most and least expensive states to own a car.
In order to determine these costs, they conducted a comprehensive survey and tracked car ownership expenses over a three-year period across all U.S. states and D.C. The results reveal the following details:
Based on an average U.S. car transaction price of $33,543 (according to Kelley Blue Book), the study found that, beyond car payments, U.S. drivers will spend an extra $11,227 on average over three years to own and operate their vehicle. This figure includes the following:
Sales tax and title fees related to the purchase of the car (referred to as “one-time purchase costs” in the study)
Annual ownership costs, such as registration fees, insurance, fuel, and maintenance (referred to as “annual ownership and usage costs”)
However, these expenses can vary dramatically from one state to another. Depending on your location, your state could add as much as $7,217 to the total cost of purchasing, maintaining, and owning a car for three years.
New Hampshire ranks as the most affordable state to own a car, with the total additional cost over three years amounting to $8,098. According to GBR, New Hampshire’s lack of sales tax on vehicles contributes to substantial savings, and the state also benefits from low insurance premiums and maintenance costs. On the other hand, Michigan is the priciest state for car ownership, with a total expense of $15,315. A significant factor here is the high insurance rates, where drivers typically pay $1,413 more than the national average.
Here are some other states from the list, including their total additional cost:
California: $14,452
Initial purchase costs: $2,116
Ongoing annual costs: $4,112
New Jersey: $13,484
Initial purchase costs: $2,408
Ongoing annual costs: $3,692
Texas: $11,673
Initial purchase costs: $2,129
Ongoing annual costs: $3,181
To view the complete list, visit their post at the link provided below.
