Among the most essential expenses for Americans is that of their car. Without it, they can’t get to and from the jobs they need to, well, pay for their car. And even if you’re so lucky to live near enough to your job that you can walk or take mass transit, the limitations placed on the rest of your life by going without wheels can be burdensome. However, buying a car is an absolute catastrophe purely from a financial perspective. The resale value plummets from the moment you drive it off the lot, and that’s just part of the story. From the insurance to the repairs to the gas to the monthly payments, your car is going to drain your bank account year after year for as long as you own it.
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To help, GOBankingRates found what the costs of owning a car come to in your state for a full calendar year. Clearly, they’re going to be very different, depending on your ride, but by looking at geographical factors — like sales tax, average repair costs and gas — you can develop a better sense of what to expect in terms of ongoing costs. The study assumes the same MSRP ($37,876, the average transaction amount from Kelley Blue Book) with a 20% down payment and one year of financing payments before adding in estimated costs like gas (assuming you have a 14-gallon tank and fill up once a week) and repairs. All told, it shows how the cost of driving is a lot higher in some states than others.
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So, take a look and see whether your home state has a driving economy that’s making it that much harder to make ends meet or one that allows you to look forward to affordable auto ownership for decades to come.
Last updated: June 28, 2021
