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

May 17, 2024

9 min Read

Written by John Csiszar

Edited by Ashleigh Ray

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GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

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The cost of owning and maintaining a car varies greatly depending on your cost of living. However, it may surprise many to learn that if you want to buy a new car you’ll need to earn a six-figure salary in each state to afford it.

GOBankingRates looked at 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 $47,244 for this purchase. The study factored in average annual car payments, fuel expenses, repair costs and car insurance premiums. 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 new car.

North Carolina

Cost of gas per year: $2,864.16
Average car insurance premium: $1,368
Annual repair costs: $402.61
Monthly payment: $707
Annual payments: $8,484
Total annual cost: $13,118.77
Minimum salary: $109,141

New Hampshire

Cost of gas per year: $3,428.88
Average car insurance premium: $1,307
Annual repair costs: $370.79
Monthly payment: $676
Annual payments: $8,112
Total annual cost: $13,218.67
Minimum salary: $109,972

New Mexico

Cost of gas per year: $2,954.64
Average car insurance premium: $1,505
Annual repair costs: $392.53
Monthly payment: $699
Annual payments: $8,388
Total annual cost: $13,240.17
Minimum salary: $110,151

South Carolina

Cost of gas per year: $2,832.96
Average car insurance premium: $1,894
Annual repair costs: $395.83
Monthly payment: $679
Annual payments: $8,148
Total annual cost: $13,270.79
Minimum salary: $110,406

Today’s Top Offers

Virginia

Cost of gas per year: $2,957.76
Average car insurance premium: $1,321
Annual repair costs: $401.17
Monthly payment: $717
Annual payments: $8,604
Total annual cost: $13,283.93
Minimum salary: $110,515

Alabama

Cost of gas per year: $2,832.96
Average car insurance premium: $1,542
Annual repair costs: $399.33
Monthly payment: $713
Annual payments: $8,556
Total annual cost: $13,330.29
Minimum salary: $110,901

Mississippi

Cost of gas per year: $2,736.24
Average car insurance premium: $1,606
Annual repair costs: $394.03
Monthly payment: $717
Annual payments: $8,604
Total annual cost: $13,340.27
Minimum salary: $110,984

Oregon

Cost of gas per year: $3,736.24
Average car insurance premium: $1,244
Annual repair costs: $393.94
Monthly payment: $673
Annual payments: $8,076
Total annual cost: $13,351.86
Minimum salary: $111,080

Indiana

Cost of gas per year: $2,976.48
Average car insurance premium: $1,256
Annual repair costs: $364.76
Monthly payment: $731
Annual payments: $8,772
Total annual cost: $13,369.24
Minimum salary: $111,225

South Dakota

Cost of gas per year: $3,038.88
Average car insurance premium: $1,581
Annual repair costs: $377.64
Monthly payment: $699
Annual payments: $8,388
Total annual cost: $13,385.52
Minimum salary: $111,360

Ohio

Cost of gas per year: $3,132.48
Average car insurance premium: $1,023
Annual repair costs: $353.76
Monthly payment: $742
Annual payments: $8,904
Total annual cost: $13,413.24
Minimum salary: $111,591

Tennessee

Cost of gas per year: $2,767.44
Average car insurance premium: $1,373
Annual repair costs: $399.11
Monthly payment: $742
Annual payments: $8,904
Total annual cost: $13,443.55
Minimum salary: $111,843

Vermont

Cost of gas per year: $3,335.28
Average car insurance premium: $1,158
Annual repair costs: $374.45
Monthly payment: $716
Annual payments: $8,592
Total annual cost: $13,459.73
Minimum salary: $111,978

Iowa

Cost of gas per year: $3,076.32
Average car insurance premium: $1,321
Annual repair costs: $359.96
Monthly payment: $726
Annual payments: $8,712
Total annual cost: $13,469.28
Minimum salary: $112,057

Today’s Top Offers

Maine

Cost of gas per year: $3,400.80
Average car insurance premium: $1,116
Annual repair costs: $349.25
Monthly payment: $718
Annual payments: $8,616
Total annual cost: $13,482.05
Minimum salary: $112,163

Idaho

Cost of gas per year: $3,282.24
Average car insurance premium: $1,121
Annual repair costs: $389.05
Monthly payment: $727
Annual payments: $8,724
Total annual cost: $13,516.29
Minimum salary: $112,448

Wyoming

Cost of gas per year: $2,945.28
Average car insurance premium: $1,736
Annual repair costs: $397.79
Monthly payment: $704
Annual payments: $8,448
Total annual cost: $13,527.07
Minimum salary: $112,538

Oklahoma

Cost of gas per year: $2,889.12
Average car insurance premium: $1,797
Annual repair costs: $379.77
Monthly payment: $706
Annual payments: $8,472
Total annual cost: $13,537.89
Minimum salary: $112,628

West Virginia

Cost of gas per year: $2,932.80
Average car insurance premium: $1,610
Annual repair costs: $383.48
Monthly payment: $724
Annual payments: $8,688
Total annual cost: $13,614.28
Minimum salary: $113,264

Wisconsin

Cost of gas per year: $3,054.48
Average car insurance premium: $1,499
Annual repair costs: $361.11
Monthly payment: $725
Annual payments: $8,700
Total annual cost: $13,614.59
Minimum salary: $113,266

North Dakota

Cost of gas per year: $3,098.16
Average car insurance premium: $1,419
Annual repair costs: $364.62
Monthly payment: $731
Annual payments: $8,772
Total annual cost: $13,653.78
Minimum salary: $113,592

Minnesota

Cost of gas per year: $3,032.64
Average car insurance premium: $1,493
Annual repair costs: $377.68
Monthly payment: $734
Annual payments: $8,808
Total annual cost: $13,711.32
Minimum salary: $114,071

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Arkansas

Cost of gas per year: $2,795.52
Average car insurance premium: $1,597
Annual repair costs: $382.61
Monthly payment: $745
Annual payments: $8,940
Total annual cost: $13,715.13
Minimum salary: $114,103

Georgia

Cost of gas per year: $2,917.20
Average car insurance premium: $1,647
Annual repair costs: $407.71
Monthly payment: $731
Annual payments: $8,772
Total annual cost: $13,743.91
Minimum salary: $114,342

Today’s Top Offers

Maryland

Cost of gas per year: $3,066.96
Average car insurance premium: $1,640
Annual repair costs: $399.07
Monthly payment: $729
Annual payments: $8,748
Total annual cost: $13,854.03
Minimum salary: $115,258

Texas

Cost of gas per year: $2,864.16
Average car insurance premium: $1,875
Annual repair costs: $397.53
Monthly payment: $728
Annual payments: $8,736
Total annual cost: $13,872.69
Minimum salary: $115,413

Check Out:

Kansas

Cost of gas per year: $2,811.12
Average car insurance premium: $1,594
Annual repair costs: $374.44
Monthly payment: $763
Annual payments: $9,156
Total annual cost: $13,935.56
Minimum salary: $115,936

Utah

Cost of gas per year: $3,279.12
Average car insurance premium: $1,469
Annual repair costs: $401.65
Monthly payment: $735
Annual payments: $8,820
Total annual cost: $13,969.77
Minimum salary: $116,221

Connecticut

Cost of gas per year: $3,132.48
Average car insurance premium: $1,750
Annual repair costs: $418.37
Monthly payment: $724
Annual payments: $8,688
Total annual cost: $13,988.85
Minimum salary: $116,380

Rhode Island

Cost of gas per year: $2,886.00
Average car insurance premium: $1,845
Annual repair costs: $386.93
Monthly payment: $740
Annual payments: $8,880
Total annual cost: $13,997.93
Minimum salary: $116,455

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Alaska

Cost of gas per year: $3,597.36
Average car insurance premium: $1,359
Annual repair costs: $387.05
Monthly payment: $725
Annual payments: $8,700
Total annual cost: $14,043.41
Minimum salary: $116,834

Montana

Cost of gas per year: $3,400.80
Average car insurance premium: $1,692
Annual repair costs: $389.84
Monthly payment: $714
Annual payments: $8,568
Total annual cost: $14,050.64
Minimum salary: $116,894

Kentucky

Cost of gas per year: $2,870.40
Average car insurance premium: $2,105
Annual repair costs: $384.76
Monthly payment: $729
Annual payments: $8,748
Total annual cost: $14,108.16
Minimum salary: $117,372

Pennsylvania

Cost of gas per year: $3,294.72
Average car insurance premium: $1,445
Annual repair costs: $384.33
Monthly payment: $749
Annual payments: $8,988
Total annual cost: $14,112.05
Minimum salary: $117,405

For You:

Today’s Top Offers

Nebraska

Cost of gas per year: $3,120.00
Average car insurance premium: $2,018
Annual repair costs: $374.53
Monthly payment: $718
Annual payments: $8,616
Total annual cost: $14,128.53
Minimum salary: $117,542

Delaware

Cost of gas per year: $3,185.52
Average car insurance premium: $2,137
Annual repair costs: $390.89
Monthly payment: $708
Annual payments: $8,496
Total annual cost: $14,209.41
Minimum salary: $118,215

Michigan

Cost of gas per year: $3,017.04
Average car insurance premium: $2,133
Annual repair costs: $356.29
Monthly payment: $732
Annual payments: $8,784
Total annual cost: $14,290.33
Minimum salary: $118,888

Illinois

Cost of gas per year: $3,213.60
Average car insurance premium: $1,578
Annual repair costs: $379.23
Monthly payment: $761
Annual payments: $9,132
Total annual cost: $14,302.83
Minimum salary: $118,992

Learn More:

Massachusetts

Cost of gas per year: $3,666.00
Average car insurance premium: $1,538
Annual repair costs: $386.20
Monthly payment: $727
Annual payments: $8,724
Total annual cost: $14,314.20
Minimum salary: $119,087

Missouri

Cost of gas per year: $2,836.08
Average car insurance premium: $2,104
Annual repair costs: $378.85
Monthly payment: $754
Annual payments: $9,048
Total annual cost: $14,366.93
Minimum salary: $119,525

New Jersey

Cost of gas per year: $3,266.64
Average car insurance premium: $1,901
Annual repair costs: $399.61
Monthly payment: $734
Annual payments: $8,808
Total annual cost: $14,375.25
Minimum salary: $119,594

Arizona

Cost of gas per year: $3,310.32
Average car insurance premium: $1,617
Annual repair costs: $388.92
Monthly payment: $761
Annual payments: $9,132
Total annual cost: $14,448.24
Minimum salary: $120,202

Be Aware:

Washington

Cost of gas per year: $3,846.96
Average car insurance premium: $1,371
Annual repair costs: $392.46
Monthly payment: $749
Annual payments: $8,988
Total annual cost: $14,598.42
Minimum salary: $121,451

Colorado

Cost of gas per year: $3,282.24
Average car insurance premium: $1,940
Annual repair costs: $417.14
Monthly payment: $748
Annual payments: $8,976
Total annual cost: $14,615.38
Minimum salary: $121,592

Today’s Top Offers

Hawaii

Cost of gas per year: $4,212.00
Average car insurance premium: $1,306
Annual repair costs: $381.23
Monthly payment: $730
Annual payments: $8,760
Total annual cost: $14,659.23
Minimum salary: $121,957

New York

Cost of gas per year: $3,307.20
Average car insurance premium: $2,020
Annual repair costs: $386.55
Monthly payment: $747
Annual payments: $8,964
Total annual cost: $14,677.75
Minimum salary: $122,111

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Florida

Cost of gas per year: $3,098.16
Average car insurance premium: $2,560
Annual repair costs: $396.29
Monthly payment: $736
Annual payments: $8,832
Total annual cost: $14,886.45
Minimum salary: $123,847

Nevada

Cost of gas per year: $3,637.92
Average car insurance premium: $2,023
Annual repair costs: $398.26
Monthly payment: $749
Annual payments: $8,988
Total annual cost: $15,047.18
Minimum salary: $125,185

Louisiana

Cost of gas per year: $2,988.96
Average car insurance premium: $2,546
Annual repair costs: $388.66
Monthly payment: $764
Annual payments: $9,168
Total annual cost: $15,091.62
Minimum salary: $125,554

California

Cost of gas per year: $3,918.72
Average car insurance premium: $2,115
Annual repair costs: $415.66
Monthly payment: $767
Annual payments: $9,204
Total annual cost: $15,653.38
Minimum salary: $130,228

Daria Uhlig and Heather Taylor contributed to the reporting of this article.

Methodology: GOBankingRates determined the salary you need to afford a new car in your state using the following assumptions: MSRP of $47,244 as sourced from Kelley Blue Book’s February 2024 report, a 20% down payment of $9,449, and Total Vehicle Expenses (“Vehicle purchases (net outlay),” “Gas, other fuels and motor fuel” and “Other vehicle expenses (excluding vehicle insurance)”) of 12.180% of one’s income before taxes as sourced from the 2022 Consumer Expenditure Survey from the Bureau of Labor Statistics (BLS). 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 2023 cost of living data and factoring it out by the “Gas, other fuels and motor fuel” expenditure from the BLS; (2) average annual insurance costs as sourced from CarInsurance.com; (3) annual repair costs sourced from CarMD’s 2022 State Repair Cost Rankings; (4) annual car loan payments as calculated by CarMax 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 12.180% to give the (6) minimum salary required to afford a new car. All data was collected on and up to date as of April 3, 2024.

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