The True Cost of Car Ownership: More Than Just the Purchase Price
Are you considering buying a car? Before you make that big purchase, it’s important to understand that car ownership is more than just the initial purchase price. There are several other costs to keep in mind, such as state sales taxes, insurance premiums, gas, and repair costs. These expenses can vary significantly by state, making car ownership a much bigger financial burden in some areas of the country than others.
To determine the most expensive states to own a car, GOBankingRates surveyed and totaled the cost of buying and owning a car for one year in all 50 states. This included car sales tax, average annual insurance premiums, average annual gas expenses, and average car maintenance and repair costs. The results revealed some surprising findings about the true cost of car ownership.
For example, in Kansas, the total cost of owning a car for one year is $26,409. This includes a state sales tax of 7.5%, average insurance premiums of $1,594, annual gas expenses of $2,029, and average repair costs of $374. Despite cheaper gas prices, the high sales tax in Kansas significantly adds to the overall cost of car ownership.
Connecticut, Michigan, New Jersey, Illinois, Rhode Island, Washington, Florida, Nevada, and California round out the top 10 most expensive states to own a car. California takes the top spot as the most expensive state to own a car, with a total cost of $28,253 for one year of ownership. This includes a state sales tax of 7.25%, average insurance premiums of $2,115, annual gas expenses of $3,431, and average repair costs of $416.
If you’re in the market for a new car, it’s essential to consider all of these costs before making a decision. By understanding the true cost of car ownership in your state, you can make a more informed choice and avoid any financial surprises down the road. So, before you head to the dealership, be sure to do your research and budget accordingly to ensure that you can afford the ongoing expenses of owning a car.