This Is the Salary You Need To Afford a New Car in Your State

Find out if you live in a more affordable state for car owners.

By Cynthia Measom September 12, 2019 Auto Loans 101

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Los Angeles, California, USA - March 22, 2016: Front view of a red Ford Mustang GT car parked on the street against the Los Angeles city downtown.

franckreporter / Getty Images

You might already know that feeling of exhilaration when you’re handed the keys to a new car. It’s a feeling that lasts long after you start up the engine and drive your new vehicle off the lot.

The one thing that can damper that feeling, however, is the arrival of the payment due date, which means that you’ll have to start forking over a portion of your hard-earned salary each month to pay for your new purchase.

And owning a car isn’t exactly cheap: The average salary needed to afford a car across all U.S. states is $81,699.

If that sounds like a lot, consider that when you own a car, it’s not just the car payments that you have to budget for. Drivers also need to factor in other costs like repairs — expected or unexpected — and fuel.

It shouldn’t be a surprise that owning a car takes some serious cash. According to data from the Bureau of Labor Statistics, transportation is often the second-largest annual expenditure — out of food, housing, transportation, healthcare and personal insurance — for U.S. families.

Even so, you might be lucky enough to live in a state that’s more affordable than the average. For example, in Alaska, residents only need an average annual salary of $75,576.13 to afford their ride.

Or you might live in a state where owning a vehicle is a considerable expense, such as Nevada, where the average driver has to earn over $18,000 more, or $93,954.19.

Whatever the case, the good news is that you don’t have to trouble yourself with compiling or calculating data to figure out where you stand. GOBankingRates looked at a variety of factors to determine the average salary needed in each state to fit the expense of a new car — which will run you an average of $37,169 in the U.S., according to Kelly Blue Book — comfortably into your budget. The study factored in average annual car payments, miles per gallon, fuel expenses, repair costs and registration fees. The state rankings are based on the minimum salary needed from lowest to highest.

Car driving on an Icy Winter Road in Alaska’s Arctic Wilderness.

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stanley45 / Getty Images/iStockphoto

Alaska

Annual gas cost: $1,710.04
Annual repair cost: $362.12
Annual payments: $5,832
Registration fee: $50 ($100 biennially)
Total annual cost: $7,954

Minimum salary needed: $75,576.13

The White Mountains are a mountain range covering about a quarter of the state of New Hampshire and a small portion of western Maine in the United States.

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DenisTangneyJr / Getty Images/iStockphoto

New Hampshire

Annual gas cost: $1,831.55
Annual repair cost: $345.70
Annual payments: $5,760
Registration fee: $43.20
Total annual cost: $7,980

Minimum salary needed: $75,825.87

An old car going down a country road in rural Warren County, Iowa.

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Michael Rolands / Getty Images/iStockphoto

Iowa

Annual gas cost: $1,558.62
Annual repair cost: $339.93
Annual payments: $6,156
Registration fee: $16
Total annual cost: $8,071

Minimum salary needed: $76,682.04

Glacier National Park, Montana, USA - August 4, 2016: Visitors to Glacier National Park touring the park along the breathtaking 'Going To The Sun Road' in cars or in park tour buses.

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YinYang / Getty Images

Montana

Annual gas cost: $1,759.85
Annual repair cost: $373.76
Annual payments: $5,748
Registration fee: $217
Total annual cost: $8,099

Minimum salary needed: $76,948.60

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Delaware

Annual gas cost: $1,629.15
Annual repair cost: $373.94
Annual payments: $6,084
Registration fee: $40
Total annual cost: $8,127

Minimum salary needed: $77,219.23

Willamette National Forest, Oregon, USA - July 13, 2018: A Subaru Forester modified for offroad use at a dispersed camping site next to a small lake in the Cascade Range.

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donald_gruener / Getty Images

Oregon

Annual gas cost: $1,940.06
Annual repair cost: $366.37
Annual payments: $5,796
Registration fee: $43
Total annual cost: $8,145

Minimum salary needed: $77,393.47

Lobster Pot Restaurant in Province Town.

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Taku Sanada / Getty Images

Massachusetts

Annual gas cost: $1,574.91
Annual repair cost: $363.71
Annual payments: $6,252
Registration fee: $60
Total annual cost: $8,251

Minimum salary needed: $78,392.91

RV Life on the Road Series: Traveling north on the Varina-Enon Bridge across the James River entering Henrico County in Virginia.

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2windspa / Getty Images/iStockphoto

Virginia

Annual gas cost: $1,772.94
Annual repair cost: $381.68
Annual payments: $6,060
Registration fee: $40.75
Total annual cost: $8,255

Minimum salary needed: $78,438.07

Montgomery, Alabama, USA - April 22, 2015: View of the Alabama State Capitol looking down Dexter Ave.

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traveler1116 / Getty Images

Alabama

Annual gas cost: $1,777.35
Annual repair cost: $374.09
Annual payments: $6,108
Registration fee: $23
Total annual cost: $8,282

Minimum salary needed: $78,695.22

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aimintang / Getty Images

Rhode Island

Annual gas cost: $1,545.09
Annual repair cost: $379.61
Annual payments: $6,324
Registration fee: $39.33 ($30 for vehicles under 4,000 lbs., $40 for vehicles 4,000-5,000 lbs. and $48 for vehicles 5,000-6,000 lbs.)
Total annual cost: $8,288

Minimum salary needed: $78,748.43

Charleston, South Carolina, USA - November 23, 2016: Historic downtown Charleston at the busy intersection of Market and Meeting Streets.

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Craig McCausland / Getty Images

South Carolina

Annual gas cost: $2,048.94
Annual repair cost: $370.07
Annual payments: $5,856
Registration fee: $40
Total annual cost: $8,315

Minimum salary needed: $79,004.68

Kearney, NE, USA - July 30, 2018: Toyota 4Runner SUV (2016 trail model) with a stand up paddleboard on rood racks in front of Great Platte River Road Archway Monument.

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marekuliasz / Getty Images

Nebraska

Annual gas cost: $1,804.06
Annual repair cost: $349.75
Annual payments: $6,156
Registration fee: $15
Total annual cost: $8,325

Minimum salary needed: $79,097.85

Glimpse of city life with traffic on Walnut Street with office buildings in the background in downtown Cincinnati, Ohio, USA illuminated at twilight.

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benedek / Getty Images/iStockphoto

Ohio

Annual gas cost: $1,626.13
Annual repair cost: $335.26
Annual payments: $6,360
Registration fee: $34.50
Total annual cost: $8,356

Minimum salary needed: $79,393.10

Covered bridge along scenic Route 7 in West Cornwall, Connecticut, USA.

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haveseen / Getty Images/iStockphoto

Connecticut

Annual gas cost: $1,648.69
Annual repair cost: $393.16
Annual payments: $6,252
Registration fee: $80
Total annual cost: $8,374

Minimum salary needed: $79,563.82

Oklahoma City, USA - February 19, 2014: Red sports car driving on empty downtown streets during sunset time.

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peeterv / Getty Images

Oklahoma

Annual gas cost: $1,872.95
Annual repair cost: $358.04
Annual payments: $6,060
Registration fee: $85
Total annual cost: $8,376

Minimum salary needed: $79,584.10

City street lined with amazing Red Maple trees, glowing in the light of Autumn sunrise.

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JamesBrey / Getty Images/iStockphoto

Wisconsin

Annual gas cost: $1,787.86
Annual repair cost: $337.89
Annual payments: $6,216
Registration fee: $75
Total annual cost: $8,417

Minimum salary needed: $79,971.42

Cars travel on the Linn Cove Viaduct highway road on the Grandfather Mountain along the Blue Ridge Parkway in autumn North Carolina USA.

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Pgiam / Getty Images/iStockphoto

North Carolina

Annual gas cost: $1,951.94
Annual repair cost: $375.42
Annual payments: $6,060
Registration fee: $36
Total annual cost: $8,423

Minimum salary needed: $80,034.20

Tourists driving a red car and white sports utility vehicle or SUV around a hairpin curve on a winding road through a scenic forest near Mt.

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YinYang / Getty Images

South Dakota

Annual gas cost: $1,856.14
Annual repair cost: $364.79
Annual payments: $6,156
Registration fee: $90
Total annual cost: $8,467

Minimum salary needed: $80,448.22

Buffalo herd crossing the road in Teddy Roosevelt National Park.

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NetaDegany / Getty Images/iStockphoto

North Dakota

Annual gas cost: $1,802.75
Annual repair cost: $339.78
Annual payments: $6,192
Registration fee: $161.50
Total annual cost: $8,496

Minimum salary needed: $80,724.65

Car driving in a country road in the Great Smoky Mountains National Park in Tennessee, USA.

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MoreISO / Getty Images/iStockphoto

Tennessee

Annual gas cost: $1,787.99
Annual repair cost: $372.84
Annual payments: $6,312
Registration fee: $23.75
Total annual cost: $8,497

Minimum salary needed: $80,729.90

Downtown retail building storefronts form geometric patterns against a deep blue sky.

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Mississippi

Annual gas cost: $1,957.59
Annual repair cost: $370.06
Annual payments: $6,156
Registration fee: $15
Total annual cost: $8,499

Minimum salary needed: $80,749.53

jeep, throwing the water stream passing through.

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okeyphotos / Getty Images

Colorado

Annual gas cost: $1,716.85
Annual repair cost: $375.57
Annual payments: $6,408
Registration fee: $0
Total annual cost: $8,500

Minimum salary needed: $80,766.40

Shiprock, New Mexico, USA - May 14, 2016 : Boy enjoys sunset at Shiprock sitting on the hood of his car.

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miroslav_1 / Getty Images

New Mexico

Annual gas cost: $2,085.10
Annual repair cost: $360.99
Annual payments: $6,012
Registration fee: $44.50
Total annual cost: $8,503

Minimum salary needed: $80,787.05

Philadelphia, USA - May 4, 2015: Traffic on JFK boulevard and Penn Center with skyline of skyscrapers in Philadelphia, Pennsylvania, USA.

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RomanBabakin / Getty Images

Pennsylvania

Annual gas cost: $1,878.43
Annual repair cost: $359.63
Annual payments: $6,240
Registration fee: $36
Total annual cost: $8,514

Minimum salary needed: $80,895.99

Jasper, Indiana, USA - August 5, 2018: The Strassenfest Parade, A group of Beauty queens, riding on the back of a classic car during the parade.

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Roberto Galan / Getty Images

Indiana

Annual gas cost: $1,943.70
Annual repair cost: $360.95
Annual payments: $6,264
Registration fee: $21.35
Total annual cost: $8,590

Minimum salary needed: $81,617.57

Kansas City, United States - May 6, 2016: On Friday afternoon a classic, blue Cadillac convertible car drives downtown past the traditional Midwestern American buildings.

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Lorraine Boogich / Getty Images

Missouri

Annual gas cost: $2,004.87
Annual repair cost: $357.80
Annual payments: $6,185
Registration fee: $51
Total annual cost: $8,599

Minimum salary needed: $81,702.61

2018 Jeep JK Sunrise Southern West Virginia Mountains photograph taken Sept 2018.

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6381380 / Getty Images

West Virginia

Annual gas cost: $1,959.13
Annual repair cost: $358.50
Annual payments: $6,264
Registration fee: $30
Total annual cost: $8,612

Minimum salary needed: $81,823.04

Traffic on Brooklyn Bridge at sunset with Manhattan skyline in the background (New York, USA).

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Manjagui / Getty Images/iStockphoto

New York

Annual gas cost: $1,777.24
Annual repair cost: $377.28
Annual payments: $6,420
Registration fee: $53.75 (Biennial registration fees start at $26 for vehicles under 1,650 lbs. and increase $1.50 for every 100 lbs. over)
Total annual cost: $8,628

Minimum salary needed: $81,981.15

Castle Rock, KS, US - July 25, 2016: Family driving Toyota 4Runner SUV (2016 Trail edition) on summer vacations carrying a kayak and bike in Kansas back country.

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marekuliasz / Getty Images

Kansas

Annual gas cost: $1,714.99
Annual repair cost: $352.67
Annual payments: $6,528
Registration fee: $35 ($30 for vehicles less than 4,500 lbs., or $40 for vehicles over 4,500 lbs.)
Total annual cost: $8,631

Minimum salary needed: $82,003.90

New Orleans - Dec 4, 2017: Afternoon view of brick building with traditional architectural elements with lens flares; at the corner of Decatur and St.

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Louisiana

Annual gas cost: $1,700.62
Annual repair cost: $366.56
Annual payments: $6,540
Registration fee: $37.17 (Automobile license plates are based upon the selling price of the vehicle. The current rate is 0.1% of the value of the vehicle per year, with a minimum base of $10,000.)
Total annual cost: $8,644

Minimum salary needed: $82,133.92

Miami Beach, Florida, USA - April 25, 2016: View along Ocean Drive along South Beach Miami in the historic Art Deco District with hotels, restaurant, people and classic car visible.

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littleny / Getty Images

Florida

Annual gas cost: $1,737.77
Annual repair cost: $366.68
Annual payments: $6,288
Registration fee: $257.50 ($225 initial registration plus $14.50 for vehicles under 2,500 lbs., $22.50 for vehicles 2,500-3,499 lbs. and $32.50 for vehicles over 3,500 lbs.)
Total annual cost: $8,650

Minimum salary needed: $82,187.18

Travelling to the Maryland Eastern Shore across the Chesapeake Bay Bridge from Annapolis, the contrails from jet aircraft arriving from Europe line the sky.

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Joesboy / Getty Images/iStockphoto

Maryland

Annual gas cost: $1,880.28
Annual repair cost: $379.49
Annual payments: $6,264
Registration fee: $135
Total annual cost: $8,659

Minimum salary needed: $82,270.92

Cars driving on road in Acadia National Park, Maine, USA.

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Maine

Annual gas cost: $2,142.51
Annual repair cost: $337.74
Annual payments: $6,156
Registration fee: $35
Total annual cost: $8,671

Minimum salary needed: $82,389.52

Rigging, Idaho, USA - September 21, 2011: Two men are launching their boat at South Fork Salmon River.

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ElsvanderGun / Getty Images

Idaho

Annual gas cost: $2,031.98
Annual repair cost: $362.24
Annual payments: $6,228
Registration fee: $69
Total annual cost: $8,691

Minimum salary needed: $82,579.28

Haleiwa: Cars drive down the Farrington highway by Kaena Point State Park and Keawaula beach in Oahu Hawaii USA.

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Pgiam / Getty Images

Hawaii

Annual gas cost: $2,067.83
Annual repair cost: $389.19
Annual payments: $6,120
Registration fee: $69
Total annual cost: $8,692

Minimum salary needed: $82,586.83

Athens, Georgia, USA - August 3, 2017: People visit the historic Georgia Theatre at dusk.

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Sean Pavone / Getty Images

Georgia

Annual gas cost: $2,036.60
Annual repair cost: $395.05
Annual payments: $6,264
Registration fee: $20
Total annual cost: $8,716

Minimum salary needed: $82,811.39

Detroit, Michigan, USA- April 24, 2016: A car passing by the famous abandoned Packard plant in Detroit.

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Peeter Viisimaa / Getty Images

Michigan

Annual gas cost: $1,866.61
Annual repair cost: $333.26
Annual payments: $6,288
Registration fee: $234
Total annual cost: $8,722

Minimum salary needed: $82,870.50

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aimintang / Getty Images

New Jersey

Annual gas cost: $1,966.80
Annual repair cost: $384.92
Annual payments: $6,288
Registration fee: $84 (Fee based on age and weight of vehicle)
Total annual cost: $8,724

Minimum salary needed: $82,888.04

Mount Rainier National Park, Washington, USA - July 31, 2016: Visitors to Mount Rainier National Park touring the park along the scenic highway in their vehicle with Mount Rainier in the distance background.

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YinYang / Getty Images

Washington

Annual gas cost: $1,999.02
Annual repair cost: $368.43
Annual payments: $6,408
Registration fee: $30
Total annual cost: $8,805

Minimum salary needed: $83,664.63

An automobile applies its brakes as it approches a sharp curve on the roadway through Camel's Hump State Forest (Rte.

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KenWiedemann / Getty Images/iStockphoto

Vermont

Annual gas cost: $2,121.34
Annual repair cost: $357.48
Annual payments: $6,264
Registration fee: $70 ($140 biennially)
Total annual cost: $8,813

Minimum salary needed: $83,734.63

Red pick up truck traveling down dusty rural road.

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JMichl / Getty Images

Minnesota

Annual gas cost: $1,708.24
Annual repair cost: $353.28
Annual payments: $6,300
Registration fee: $471.61 (Registration fee based on the value of the vehicle. $10 plus an additional tax equal to 1.25% of the base value of the vehicle.)
Total annual cost: $8,833

Minimum salary needed: $83,927.59

Pickup truck heading home at sunset on West Texas country road.

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Texas

Annual gas cost: $2,193.13
Annual repair cost: $361.89
Annual payments: $6,252
Registration fee: $50.75
Total annual cost: $8,858

Minimum salary needed: $84,161.73

Chicago, USA - May 30, 2016: Two men with cubs shirt in flashy red and white Polaris Slingshot Ferrari sports cars on downtown street.

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ablokhin / Getty Images

Illinois

Annual gas cost: $1,933.10
Annual repair cost: $352.54
Annual payments: $6,504
Registration fee: $101
Total annual cost: $8,891

Minimum salary needed: $84,474.08

Traffic crossing an interstate highway four lane on a bridge over the Ohio River, Louisville, Kentucky, USA.

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Kentucky

Annual gas cost: $2,369.89
Annual repair cost: $368.36
Annual payments: $6,192
Registration fee: $21
Total annual cost: $8,951

Minimum salary needed: $85,049.96

A red car vehicle touring the scenic mountain highways.

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YinYang / Getty Images/iStockphoto

Utah

Annual gas cost: $2,342.41
Annual repair cost: $374.17
Annual payments: $6,336
Registration fee: $43
Total annual cost: $9,096

Minimum salary needed: $86,421.30

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dlewis33 / Getty Images/iStockphoto

Arkansas

Annual gas cost: $2,418.48
Annual repair cost: $363.10
Annual payments: $6,300
Registration fee: $25 ($25 for vehicles 3,000-4,500 lbs.)
Total annual cost: $9,107

Minimum salary needed: $86,525.81

aerial view of the bighorn national forest.

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Wyoming

Annual gas cost: $2,728.32
Annual repair cost: $366.63
Annual payments: $6,120
Registration fee: $30
Total annual cost: $9,245

Minimum salary needed: $87,840.50

Subject: Tourists in a red car traveling in the American Southwest, driving downhill on a straight length of highway stretching from southern Utah toward Monument Valley, Arizona.

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YinYang / Getty Images/iStockphoto

Arizona

Annual gas cost: $2,227.90
Annual repair cost: $360.85
Annual payments: $6,720
Registration fee: $8
Total annual cost: $9,317

Minimum salary needed: $88,522.73

San Francisco, USA - May 29, 2014: Pedestrians and people in cars on the steep and winding Lombard Street in California, a popular tourist spot.

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RiverNorthPhotography / Getty Images

California

Annual gas cost: $2,196.38
Annual repair cost: $385.42
Annual payments: $6,756
Registration fee: $46
Total annual cost: $9,384

Minimum salary needed: $89,159.82

Las Vegas, Nevada, USA - March, 15 2009: cars driving on The Strip in front of the Paris Las Vegas Hotel Casino by night.

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MoreISO / Getty Images

Nevada

Annual gas cost: $3,051.04
Annual repair cost: $372.36
Annual payments: $6,432
Registration fee: $33
Total annual cost: $9,888

Minimum salary needed: $93,954.19

More on Cars and Money

Methodology: GOBankingRates determined the minimum salary you need to afford a new car in your state using the following assumptions: the car has an MSRP of $37,169 — the average cost for a light vehicle in the United States, according to a July 2019 report from Kelley Blue Book — the car has a weight of 3,500 pounds and the driver makes a 20% down payment of $7,434. The study also factored in total vehicle expenses (“vehicle purchases [net outlay]”), gas (“other fuels and motor fuel”), and “other vehicle expenses” (excluding vehicle insurance) making up 10.5247% of one’s income before taxes, as sourced from the 2017 Consumer Expenditure Survey from the Bureau of Labor Statistics. With these constants GOBankingRates found the following factors for each state: (1) average number of miles driven, sourced from the Federal Highway Administration; (2) average miles per gallon, sourced from the Federal Highway Administration; (3) average price of regular gas per gallon, sourced from AAA; (4) cost of gas per year calculated by dividing factors three and two and taking that figure and multiplying it by factor one; (5) registration fees, sourced from the National Conference of State Legislatures 2017 Vehicle Registration Fees presentation; (6) annual repair costs, sourced from CarMd’s 2018 State Repair Cost Rankings; and (7) annual car loan payments as calculated by both CarMax and the Hawaiian Hawaii Community Federal Union: Auto Loan Calculator. Factors four, five, six and seven were combined to give a final (8) total annual cost, which was then divided by 10.5247% to give (9) the minimum salary required to afford a new car. All data was collected and is up to date as of Aug. 27, 2019.

About the Author

Cynthia Measom

Cynthia Measom is a Texas-based writer specializing in finance, business, parenting and education. With almost a decade of online writing experience, her work has appeared on websites such as Chron.com, The Bump and The Motley Fool. Measom received a Bachelor of Arts in English from the University of Texas at Austin.

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