Top 10 Best States To Buy A Car From

Two years ago, Forbes.com came up with a top 10 of the best states to buy a car from. As some of you might expect, the sticker price varies greatly from state to state due to the fact that financing in some of the states can cost car buyers even an additional $6,000 beyond the price tag of the vehicle over a period of five years. Add to this the taxes, fees, the rate of the depreciation and the money that you will pay for the gas, a $20,000 car will cost way more than that.

To give you a relevant example, in Hawaii, owning a vehicle for five years will cost you $59,457 in comparison to New Hampshire, where the average car buyer pays only $47,599. Other good areas where to buy a car would be: Oregon, South Carolina and South Dakota. On the contrary, you will pay more if you buy a car in Nevada, Alaska or California.

This information is based upon the latest True Cost to Own (TCO) study conducted by Edmunds.com. The study was started back in 1994 to consider the costs beyond transaction price-like depreciation and maintenance. This study quantifies the various outlays car owners experience over a 5-year period. When they’ve made the study, they’ve assumed that the cars were driven an average of 15,000 miles / year and the vehicles were financed, not leased. The car buyers did a 10% down payment and are in the “Gold” credit tier and they took a 60-month loan term.

You need to know that all the 50 states require that car buyers carry at least some degree of coverage. However, insurance premiums differ from region to region. Why? Because according to Dick Luedke, a spokesman from the State Farm Insurance, “driving 10 miles in Manhattan is not the same thing as driving 10 miles in rural Kansas. States with lower urban populations have cheaper rates.”

In an area that there are more cars, there will be more accidents and a higher risk for vehicle theft. The value of the premium also depends on the number of natural disasters.

Here are the top 10 best states to buy a car from:

10. Ohio

Taxes & Fees: $2,339
Depreciation: $18,174
Finance & Interest: $5,814
Insurance: $7,019
Fuel Costs: $13,311
Maintenance: $3,663
Repairs: $914

Total True Cost to Own: $51,234

09. New Mexico

Taxes & Fees: $2,216
Depreciation: $18,229
Finance & Interest: $5,916
Insurance: $6,940
Fuel Costs: $12,765
Maintenance: $4,055
Repairs: $1,036

Total True Cost to Own: $51,157

08. Georgia

Taxes & Fees: $3,217
Depreciation: $18,037
Finance & Interest: $5,712
Insurance: $6,355
Fuel Costs: $13,202
Maintenance: $3,666
Repairs: $914

Total True Cost to Own: $51,103

07. Massachusetts

Taxes & Fees: $3,283
Depreciation: $18,208
Finance & Interest: $5,487
Insurance: $6,640
Fuel Costs: $13,240
Maintenance: $3,300
Repairs: $812

Total True Cost to Own: $50,970

06. North Dakota

Taxes & Fees: $2,009
Depreciation: $18,305
Finance & Interest: $5,854
Insurance: $6,645
Fuel Costs: $13,332
Maintenance: $3,499
Repairs: $871

Total True Cost to Own: $50,515

05. Wisconsin

Taxes & Fees: $1,994
Depreciation: $18,282
Finance & Interest: $5,614
Insurance: $5,956
Fuel Costs: $13,396
Maintenance: $4,115
Repairs: $1,061

Total True Cost to Own: $50,417

04. Oregon

Taxes & Fees: $159
Depreciation: $18,316
Finance & Interest: $5,865
Insurance: $7,885
Fuel Costs: $13,280
Maintenance: $3,781
Repairs: $981

Total True Cost to Own: $50,268

03. South Carolina

Taxes & Fees: $407
Depreciation: $18,037
Finance & Interest: $5,338
Insurance: $8,705
Fuel Costs: $12,719
Maintenance: $3,454
Repairs: $855

Total True Cost to Own: $49,515

02. Taxes & Fees: $1,757
Depreciation: $18,305
Finance & Interest: $5,929
Insurance: $5,638
Fuel Costs: $13,308
Maintenance: $3,633
Repairs: $914

Total True Cost to Own: $49,483

01. New Hampshire

Taxes & Fees: $250
Depreciation: $18,305
Finance & Interest: $5,213
Insurance: $6,507
Fuel Costs: $13,216
Maintenance: $3,276
Repairs: $829

Total True Cost to Own: $47,499

On the flip side, the top 10 worst states to own a car would be: Arizona, New York, Washington D.C., Louisiana, Connecticut, West Virginia, Nevada, Alaska, California and Hawaii.

Source: Forbes & Edmunds

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