If when buying a car you’re taking into account the costs regarding the insurance fees, fuel economy and depreciation of the vehicle, now you should also consider the place where you own the car because the state you live in will influence the sum of money you invest in your auto more than you have probably thought of.
A recent study from the personal finance website GOBankingRates.com released that over the course of three years the difference between living in the most expensive state for car ownership – Michigan, and the cheapest – New Hampshire, is of $7,216. And this does not contain the car costs or financing for its purchase.
Elyssa Kirkham, lead reporter on the study, explained that “The common costs of owning a car outside of the car payment quickly add up — our survey found that the average costs of owning a car for three years is $11,227. Typically, car owners should keep their costs low – around 15% of their income for the car payment, insurance, gas, and so on – which is trickier in states with higher car costs.”
The rankings the website used for its top ten most expensive and cheapest states for car owners are based on local sales taxes, title and registrations fees, average annual auto insurance premiums, average maintenance and repair costs and local gas prices for fuel costs.
Michigan is at the top of the charts, being the most expensive, with $15,314 in costs for a three-year period. It is followed by California ($14,451), District of Columbia ( $13,561), New Jersey ($13,484), Florida( $13,211), Maryland ($12,926), Rhode Island ($12,596), Montana (12,764), Nevada (12,696) and Washington ($12,613).
At the opposite, New Hampshire takes the crown for being the cheapest state for car owners with $8,098 worth in costs for three years. The least expensive states that follow New Hampshire are: Missouri ($9,280), North Carolina ($9,448), Wisconsin ($9,571), Ohio ($9,595), Virginia ($9,603), Oregon ($9,696), Alaska ($9,814), Maine ($9,866), New Mexico ($9,923).