The Two US States That Are Cheapest To Own A Car

Unless you live in major cities like New York and Chicago with access to efficient public transportation, owning a car is often an essential method of transportation in America. In fact, with as many as 279 million registered vehicles in the country, there are nearly as many cars as there are people, with 92% of U.S. households owning at least one car (based on the most recent data available via the U.S. Census Bureau.) At the same time, with things like gas prices, auto insurance, and regular maintenance for your vehicle, it's no surprise that car ownership is the second-largest financial burden for Americans today after housing.

While there are certainly some tricks you can use to save money on your car insurance and gas, having to pay significant fees for maintenance are mostly unavoidable. If you drive your car every day, it'll go through wear and tear over the years and something will eventually need maintenance. And seeing as 59% of Americans have less than $1,000 in savings, many people are forced to go into debt to pay for larger repairs of $1,000+. Regardless, while insurance, maintenance, and gas prices that come with car ownership are unavoidable, depending on where you live in the country, you actually may be far more fortunate than others in regard to your annual vehicle expenses. That being said, let's take a look at the U.S. states that are cheapest to own a car in America today to see where you land amongst the group.

According to a 2024 study done by AAA, the average cost of car ownership in America is over $12,297 annually, taking into consideration things like loan payments, fuel, maintenance, insurance, and more. Regardless, this boils down to a monthly fee of $1,024, which is a $115 annual increase from the previous year. This being the case, it's pretty clear that while it's largely difficult to live in America and not own a vehicle, the costs that come with car ownership can do significant damage to your net worth over time. However, these costs are just an average estimate. Depending on your geographic location in the country, you may actually be required to spend more (or less) than the aforementioned prices.

That being said, let's get the bad news out of the way and list the top five most expensive states on average for car owners in America. Coming in at number five is Mississippi, where the average annual cost of car ownership is $6,075. At number four we have Michigan at $6,244, and number three is Louisiana, where it is a few dollars higher than the previous state at $6,248. The second most expensive state to own a car is Nevada at $6,366 annually, and last but not least, the most expensive state in America to own a car on average is none other than California with an annual price tag of $6,545.

Now that we've got the bad news out of the way, let's instead take a look at the cheapest states to own a vehicle in the U.S. For starters, the fifth cheapest state to own a vehicle in America is going to be Wisconsin, at an average annual cost of $5,082. At number four we have Washington D.C., not a state, but where the average annual cost is slightly less than the previous at $5,057, and number three is Pennsylvania at $5,008. The second cheapest state for car owners is Oregon, where you will be faced with an average annual cost of $4,963. And finally, to close off our list we actually have a tie for number one between Virginia and Ohio. In these two states, on average it costs $4,892 annually to own a vehicle. Keep in mind that these prices do not reflect loan payments or interest.

In the case that you found your state in this list, congratulations! Although it may not seem like it at times, nonetheless you are fortunate enough to live in one of the top five cheapest states in the country to own a vehicle. However, regardless if your state was on the more expensive or inexpensive side of the list, unfortunately, due to the current economic climate in the U.S. it is rather unlikely that these costs will improve in the coming months. For that reason, for anyone considering purchasing a vehicle soon, you might want to think twice before financing a car until late 2025.