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

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. But owning a car isn’t exactly cheap; The average salary needed to afford a car across all U.S. states is $76,438, once you factor in costs like repairs and fuel.

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The cost of owning and maintaining a car varies greatly depending on where you live, though. If you’re lucky enough to live in New Hampshire, for example, you’ll only need an average annual salary of $70,565 to afford your ride. On the other end of the spectrum comes California, where the average driver has to earn over $16,000 more, or $86,807, to afford a new car.

Read: 17 Hidden Auto Costs Your Dealer Will Never Tell You About

GOBankingRates looked at a variety of factors to determine the average salary needed in each state to afford a new car, which, according to Kelley Blue Book, will run you an average of $38,378 in the U.S. The study factored in average annual car payments, fuel expenses, repair costs and registration fees. The state rankings are based on the minimum salary needed from lowest to highest.

Take a look so that you can prepare for the costs of owning a car.

Last updated: June 22, 2021

• Annual gas cost: $2,014.10
• Annual repair cost: $365.71
• Annual payments: $5,940
• Registration fee: $31.20
• Total annual cost: $8,351.01

Minimum salary needed: $70,565

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• Annual gas cost: $1,959.26
• Annual repair cost: $393.40
• Annual payments: $6,036
• Registration fee: $40.00
• Total annual cost: $8,428.66

Minimum salary needed: $71,221

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• Annual gas cost: $1,912.86
• Annual repair cost: $388.66
• Annual payments: $6,045
• Registration fee: $217.00
• Total annual cost: $8,563.52

Minimum salary needed: $72,361

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• Annual gas cost: $1,933.95
• Annual repair cost: $380.17
• Annual payments: $6,216
• Registration fee: $44.50
• Total annual cost: $8,574.62

Minimum salary needed: $72,454

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• Annual gas cost: $1,758.91
• Annual repair cost: $377.31
• Annual payments: $6,460
• Registration fee: $30.00
• Total annual cost: $8,626.54

Minimum salary needed: $72,893

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• Annual gas cost: $1,710.40
• Annual repair cost: $383.21
• Annual payments: $6,506
• Registration fee: $30.00
• Total annual cost: $8,629.41

Minimum salary needed: $72,917

• Annual gas cost: $1,887.56
• Annual repair cost: $396.36
• Annual payments: $6,360
• Registration fee: $15.00
• Total annual cost: $8,658.92

Minimum salary needed: $73,167

• Annual gas cost: $1,974.02
• Annual repair cost: $402.86
• Annual payments: $6,264
• Registration fee: $36.00
• Total annual cost: $8,676.88

Minimum salary needed: $73,318

• Annual gas cost: $1,978.24
• Annual repair cost: $403.19
• Annual payments: $6,264
• Registration fee: $40.75
• Total annual cost: $8,686.18

Minimum salary needed: $73,397

• Annual gas cost: $1,961.37
• Annual repair cost: $378.89
• Annual payments: $6,264
• Registration fee: $85.00
• Total annual cost: $8,689.26

Minimum salary needed: $73,423

• Annual gas cost: $1,965.59
• Annual repair cost: $398.01
• Annual payments: $6,312
• Registration fee: $23.00
• Total annual cost: $8,698.60

Minimum salary needed: $73,502

• Annual gas cost: $1,990.90
• Annual repair cost: $364.38
• Annual payments: $6,372
• Registration fee: $15.00
• Total annual cost: $8,742.28

Minimum salary needed: $73,871

• Annual gas cost: $1,993.01
• Annual repair cost: $389.01
• Annual payments: $6,408
• Registration fee: $21.00
• Total annual cost: $8,811.02

Minimum salary needed: $74,452

• Annual gas cost: $1,853.81
• Annual repair cost: $399.08
• Annual payments: $6,540
• Registration fee: $23.75
• Total annual cost: $8,816.64

Minimum salary needed: $74,499

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• Annual gas cost: $1,921.30
• Annual repair cost: $393.35
• Annual payments: $6,468
• Registration fee: $50.75
• Total annual cost: $8,833.40

Minimum salary needed: $74,641

• Annual gas cost: $2,132.20
• Annual repair cost: $389.99
• Annual payments: $6,276
• Registration fee: $40.00
• Total annual cost: $8,838.19

Minimum salary needed: $74,681

• Annual gas cost: $1,990.90
• Annual repair cost: $376.53
• Annual payments: $6,425
• Registration fee: $72.00
• Total annual cost: $8,864.23

Minimum salary needed: $74,901

• Annual gas cost: $2,121.65
• Annual repair cost: $356.76
• Annual payments: $6,372
• Registration fee: $35.00
• Total annual cost: $8,885.41

Minimum salary needed: $75,080

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• Annual gas cost: $2,043.62
• Annual repair cost: $349.08
• Annual payments: $6,432
• Registration fee: $75.00
• Total annual cost: $8,899.70

Minimum salary needed: $75,201

• Annual gas cost: $2,033.08
• Annual repair cost: $409.92
• Annual payments: $6,480
• Registration fee: $20.00
• Total annual cost: $8,943.00

Minimum salary needed: $75,567

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• Annual gas cost: $2,073.15
• Annual repair cost: $357.43
• Annual payments: $6,480
• Registration fee: $36.35
• Total annual cost: $8,946.93

Minimum salary needed: $75,600

• Annual gas cost: $2,081.58
• Annual repair cost: $392.75
• Annual payments: $6,504
• Registration fee: $22.50
• Total annual cost: $9,000.83

Minimum salary needed: $76,056

• Annual gas cost: $1,938.17
• Annual repair cost: $375.20
• Annual payments: $6,660
• Registration fee: $51.00
• Total annual cost: $9,024.37

Minimum salary needed: $76,255

• Annual gas cost: $2,136.42
• Annual repair cost: $387.11
• Annual payments: $6,444
• Registration fee: $69.00
• Total annual cost: $9,036.53

Minimum salary needed: $76,357

• Annual gas cost: $1,893.88
• Annual repair cost: $382.76
• Annual payments: $6,774
• Registration fee: $17.00
• Total annual cost: $9,068.00

Minimum salary needed: $76,623

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• Annual gas cost: $1,997.22
• Annual repair cost: $371.80
• Annual payments: $6,768
• Registration fee: $30.00
• Total annual cost: $9,167.02

Minimum salary needed: $77,460

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• Annual gas cost: $2,153.29
• Annual repair cost: $399.33
• Annual payments: $6,480
• Registration fee: $135.00
• Total annual cost: $9,167.62

Minimum salary needed: $77,465

• Annual gas cost: $2,187.03
• Annual repair cost: $387.61
• Annual payments: $6,564
• Registration fee: $30.00
• Total annual cost: $9,168.64

Minimum salary needed: $77,474

• Annual gas cost: $2,058.38
• Annual repair cost: $356.57
• Annual payments: $6,360
• Registration fee: $395.78
• Total annual cost: $9,170.73

Minimum salary needed: $77,491

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• Annual gas cost: $2,216.56
• Annual repair cost: $348.79
• Annual payments: $6,588
• Registration fee: $34.50
• Total annual cost: $9,187.85

Minimum salary needed: $77,636

• Annual gas cost: $2,174.38
• Annual repair cost: $350.77
• Annual payments: $6,504
• Registration fee: $177.00
• Total annual cost: $9,206.15

Minimum salary needed: $77,791

• Annual gas cost: $2,220.78
• Annual repair cost: $399.42
• Annual payments: $6,552
• Registration fee: $43.00
• Total annual cost: $9,215.20

Minimum salary needed: $77,867

• Annual gas cost: $2,809.19
• Annual repair cost: $393.59
• Annual payments: $5,988
• Registration fee: $43.00
• Total annual cost: $9,233.78

Minimum salary needed: $78,024

• Annual gas cost: $2,037.29
• Annual repair cost: $392.15
• Annual payments: $6,768
• Registration fee: $38.38
• Total annual cost: $9,235.82

Minimum salary needed: $78,041

• Annual gas cost: $2,349.43
• Annual repair cost: $379.54
• Annual payments: $6,492
• Registration fee: $36.00
• Total annual cost: $9,256.97

Minimum salary needed: $78,220

• Annual gas cost: $2,292.48
• Annual repair cost: $403.43
• Annual payments: $6,504
• Registration fee: $58.75
• Total annual cost: $9,258.66

Minimum salary needed: $78,234

• Annual gas cost: $2,163.83
• Annual repair cost: $357.05
• Annual payments: $6,584
• Registration fee: $161.50
• Total annual cost: $9,266.18

Minimum salary needed: $78,298

• Annual gas cost: $2,359.97
• Annual repair cost: $380.67
• Annual payments: $6,468
• Registration fee: $60.00
• Total annual cost: $9,268.64

Minimum salary needed: $78,319

• Annual gas cost: $2,372.63
• Annual repair cost: $401.55
• Annual payments: $6,468
• Registration fee: $80.00
• Total annual cost: $9,322.18

Minimum salary needed: $78,771

• Annual gas cost: $2,454.88
• Annual repair cost: $342.14
• Annual payments: $6,466
• Registration fee: $76.00
• Total annual cost: $9,339.22

Minimum salary needed: $78,915

• Annual gas cost: $2,336.77
• Annual repair cost: $376.08
• Annual payments: $6,648
• Registration fee: $46.25
• Total annual cost: $9,407.10

Minimum salary needed: $79,489

• Annual gas cost: $2,210.23
• Annual repair cost: $372.51
• Annual payments: $6,756
• Registration fee: $101.00
• Total annual cost: $9,439.74

Minimum salary needed: $79,764

• Annual gas cost: $2,117.44
• Annual repair cost: $371.31
• Annual payments: $6,516
• Registration fee: $489.73
• Total annual cost: $9,494.47

Minimum salary needed: $80,227

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• Annual gas cost: $2,530.80
• Annual repair cost: $373.46
• Annual payments: $6,509
• Registration fee: $100.00
• Total annual cost: $9,513.30

Minimum salary needed: $80,386

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• Annual gas cost: $2,501.27
• Annual repair cost: $392.79
• Annual payments: $6,636
• Registration fee: $30.00
• Total annual cost: $9,560.06

Minimum salary needed: $80,781

• Annual gas cost: $2,227.10
• Annual repair cost: $385.56
• Annual payments: $6,972
• Registration fee: $9.50
• Total annual cost: $9,594.16

Minimum salary needed: $81,069

• Annual gas cost: $2,539.24
• Annual repair cost: $395.84
• Annual payments: $6,648
• Registration fee: $33.00
• Total annual cost: $9,616.08

Minimum salary needed: $81,254

• Annual gas cost: $3,091.79
• Annual repair cost: $402.91
• Annual payments: $6,288
• Registration fee: $45.00
• Total annual cost: $9,827.82

Minimum salary needed: $83,044

• Annual gas cost: $2,231.32
• Annual repair cost: $401.55
• Annual payments: $6,648
• Registration fee: $785.05
• Total annual cost: $10,065.92

Minimum salary needed: $85,056

• Annual gas cost: $2,804.97
• Annual repair cost: $414.24
• Annual payments: $7,008
• Registration fee: $46.00
• Total annual cost: $10,273.21

Minimum salary needed: $86,807

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Methodology: GOBankingRates determined the salary you need to afford a new car in your state using the following assumptions: MSRP of $38,378 as sourced from Kelley Blue Book’s July 2020 report, car weight of 3,500 pounds, a 20% down payment of $7,434 and Total Vehicle Expenses (“Vehicle purchases (net outlay)”), “Gas, other fuels and motor fuel,” and “Other vehicle expenses (excluding vehicle insurance),” of 11.83452% of one’s income before taxes as sourced from the Consumer Expenditure Survey from the Bureau of Labor Statistics (BLS) mid-year table from the third quarter of 2018 through the second quarter of 2019. With these constants, GOBankingRates found the following factors for each state: (1) cost of gas per year calculated by sourcing each state’s transportation cost-of-living index from the Missouri Economic and Research and Information Center’s 2020 first quarter data and factoring it out by the “Gas, other fuels and motor fuel” expenditure from the BLS; (2) registration fees sourced from the National Conference of State Legislatures’ 2020 Vehicle Registration Fees presentation; (3) annual repair costs sourced from CarMD’s 2020 State Repair Cost Rankings; and (4) annual car loan payments as calculated by both CarMax and the Calculator.net Auto Loan Calculator. Finally, all factors were totaled to find the (5) total annual cost to purchase and operate a new car in each state, which was then divided by 11.83452% to give the (6) minimum salary required to afford a new car. All data was collected on and up to date as of Aug. 26, 2020.