At a time when many people are feeling the crush of higher prices and stagnant wages, any ability to save money can be a lifeline. Owning a car is a significant expense of a substantial number of people, but it turns out that where you live can have a big impact on how much it costs to have 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 costs.
The study found that people in western states face the highest car ownership costs, with stout gas prices and higher registration fees. Vermont topped the list as the best state in which to own a car, with low average annual insurance rates of $400 for minimal coverage, cheap used cars, and 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 include:
- Vermont
- Ohio
- Minnesota
- Delaware
- Pennsylvania
- Indiana
- Wisconsin
- Texas
- New Hampshire
- Mississippi
Those states had reasonable insurance rates and gas prices, and people there paid less in registration and use taxes. That said, the states at the other end of the spectrum pay exorbitant prices to own a car. Nevada was ranked as the worst, followed by California, Colorado, Illinois, and Washington. Those states have “more aggressive environmental policies,” according to the study, and higher fees 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 prices, plenty of choice, and the potential for rust from the harsh winter weather.