At a time when many people are feeling the pinch of higher prices and stagnant wages, any ability to save money can be a lifeline. Owning a car is a significant expense for a significant number of people, but it turns out that where you live can have a big impact on how much it costs to own a vehicle. National Business Capital recently released a list of the best states to own and operate a car in 2024, looking at prices, taxes, and other factors to calculate the cost.
The study found that people in western states have the highest car ownership costs, with steep gas prices and higher registration fees. Vermont topped the list as the best state to own a car, with a low average annual insurance rates from $400 for minimum coverage, cheap used carsand low sales tax rates. At the same time, Vermonters pay more in gas prices and registration fees than dozens of other states. The remaining top ten best states to own a vehicle are:
- Vermont
- Ohio
- Minnesota
- Delaware
- Pennsylvania
- Indiana
- Wisconsin
- Texas
- New Hampshire
- Mississippi
Those states had reasonable insurance rates and gas prices, and people paid less in registration and use taxes. That said, states on the other end of the spectrum pay exorbitant prices to own a car. Nevada ranked as the worst, followed by California, Colorado, Illinois, and Washington. Those states have “more aggressive environmental policies,“according to the research, and higher rates for less”“green” vehicles.
National Business Capital also looked at used car purchases. It found that used vehicles are cheaper in the Northeast and Midwest due to several factors, including lower car priceslots of choice, and the chance of rust due to the severe winter weather.