Yahoo Finance This Is the Salary You Need To Afford a New Car in Your State
The cost of owning and maintaining a car varies greatly depending on your cost of living. However, it may surprise many to learn that if you want to buy a new car you’ll need to earn a six-figure salary in each state to afford it.
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GOBankingRates looked at factors to determine the average salary needed in each state to afford a new car, which, according to Kelley Blue Book, will run you an average of $47,244 for this purchase. The study factored in average annual car payments, fuel expenses, repair costs and car insurance premiums. The state rankings are based on the minimum salary needed from lowest to highest.
Take a look so that you can prepare for the costs of owning a new car.
North Carolina
Cost of gas per year: $2,864.16
Average car insurance premium: $1,368
Annual repair costs: $402.61
Monthly payment: $707
Annual payments: $8,484
Total annual cost: $13,118.77
Minimum salary: $109,141
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New Hampshire
Cost of gas per year: $3,428.88
Average car insurance premium: $1,307
Annual repair costs: $370.79
Monthly payment: $676
Annual payments: $8,112
Total annual cost: $13,218.67
Minimum salary: $109,972
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New Mexico
Cost of gas per year: $2,954.64
Average car insurance premium: $1,505
Annual repair costs: $392.53
Monthly payment: $699
Annual payments: $8,388
Total annual cost: $13,240.17
Minimum salary: $110,151
South Carolina
Cost of gas per year: $2,832.96
Average car insurance premium: $1,894
Annual repair costs: $395.83
Monthly payment: $679
Annual payments: $8,148
Total annual cost: $13,270.79
Minimum salary: $110,406
Virginia
Cost of gas per year: $2,957.76
Average car insurance premium: $1,321
Annual repair costs: $401.17
Monthly payment: $717
Annual payments: $8,604
Total annual cost: $13,283.93
Minimum salary: $110,515
Alabama
Cost of gas per year: $2,832.96
Average car insurance premium: $1,542
Annual repair costs: $399.33
Monthly payment: $713
Annual payments: $8,556
Total annual cost: $13,330.29
Minimum salary: $110,901
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Mississippi
Cost of gas per year: $2,736.24
Average car insurance premium: $1,606
Annual repair costs: $394.03
Monthly payment: $717
Annual payments: $8,604
Total annual cost: $13,340.27
Minimum salary: $110,984
Oregon
Cost of gas per year: $3,736.24
Average car insurance premium: $1,244
Annual repair costs: $393.94
Monthly payment: $673
Annual payments: $8,076
Total annual cost: $13,351.86
Minimum salary: $111,080
Indiana
Cost of gas per year: $2,976.48
Average car insurance premium: $1,256
Annual repair costs: $364.76
Monthly payment: $731
Annual payments: $8,772
Total annual cost: $13,369.24
Minimum salary: $111,225
South Dakota
Cost of gas per year: $3,038.88
Average car insurance premium: $1,581
Annual repair costs: $377.64
Monthly payment: $699
Annual payments: $8,388
Total annual cost: $13,385.52
Minimum salary: $111,360
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Ohio
Cost of gas per year: $3,132.48
Average car insurance premium: $1,023
Annual repair costs: $353.76
Monthly payment: $742
Annual payments: $8,904
Total annual cost: $13,413.24
Minimum salary: $111,591
Tennessee
Cost of gas per year: $2,767.44
Average car insurance premium: $1,373
Annual repair costs: $399.11
Monthly payment: $742
Annual payments: $8,904
Total annual cost: $13,443.55
Minimum salary: $111,843
Vermont
Cost of gas per year: $3,335.28
Average car insurance premium: $1,158
Annual repair costs: $374.45
Monthly payment: $716
Annual payments: $8,592
Total annual cost: $13,459.73
Minimum salary: $111,978
Iowa
Cost of gas per year: $3,076.32
Average car insurance premium: $1,321
Annual repair costs: $359.96
Monthly payment: $726
Annual payments: $8,712
Total annual cost: $13,469.28
Minimum salary: $112,057
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Maine
Cost of gas per year: $3,400.80
Average car insurance premium: $1,116
Annual repair costs: $349.25
Monthly payment: $718
Annual payments: $8,616
Total annual cost: $13,482.05
Minimum salary: $112,163
Idaho
Cost of gas per year: $3,282.24
Average car insurance premium: $1,121
Annual repair costs: $389.05
Monthly payment: $727
Annual payments: $8,724
Total annual cost: $13,516.29
Minimum salary: $112,448
Wyoming
Cost of gas per year: $2,945.28
Average car insurance premium: $1,736
Annual repair costs: $397.79
Monthly payment: $704
Annual payments: $8,448
Total annual cost: $13,527.07
Minimum salary: $112,538
Oklahoma
Cost of gas per year: $2,889.12
Average car insurance premium: $1,797
Annual repair costs: $379.77
Monthly payment: $706
Annual payments: $8,472
Total annual cost: $13,537.89
Minimum salary: $112,628
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West Virginia
Cost of gas per year: $2,932.80
Average car insurance premium: $1,610
Annual repair costs: $383.48
Monthly payment: $724
Annual payments: $8,688
Total annual cost: $13,614.28
Minimum salary: $113,264
Wisconsin
Cost of gas per year: $3,054.48
Average car insurance premium: $1,499
Annual repair costs: $361.11
Monthly payment: $725
Annual payments: $8,700
Total annual cost: $13,614.59
Minimum salary: $113,266
North Dakota
Cost of gas per year: $3,098.16
Average car insurance premium: $1,419
Annual repair costs: $364.62
Monthly payment: $731
Annual payments: $8,772
Total annual cost: $13,653.78
Minimum salary: $113,592
Minnesota
Cost of gas per year: $3,032.64
Average car insurance premium: $1,493
Annual repair costs: $377.68
Monthly payment: $734
Annual payments: $8,808
Total annual cost: $13,711.32
Minimum salary: $114,071
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Arkansas
Cost of gas per year: $2,795.52
Average car insurance premium: $1,597
Annual repair costs: $382.61
Monthly payment: $745
Annual payments: $8,940
Total annual cost: $13,715.13
Minimum salary: $114,103
Georgia
Cost of gas per year: $2,917.20
Average car insurance premium: $1,647
Annual repair costs: $407.71
Monthly payment: $731
Annual payments: $8,772
Total annual cost: $13,743.91
Minimum salary: $114,342
Maryland
Cost of gas per year: $3,066.96
Average car insurance premium: $1,640
Annual repair costs: $399.07
Monthly payment: $729
Annual payments: $8,748
Total annual cost: $13,854.03
Minimum salary: $115,258
Texas
Cost of gas per year: $2,864.16
Average car insurance premium: $1,875
Annual repair costs: $397.53
Monthly payment: $728
Annual payments: $8,736
Total annual cost: $13,872.69
Minimum salary: $115,413
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Kansas
Cost of gas per year: $2,811.12
Average car insurance premium: $1,594
Annual repair costs: $374.44
Monthly payment: $763
Annual payments: $9,156
Total annual cost: $13,935.56
Minimum salary: $115,936
Utah
Cost of gas per year: $3,279.12
Average car insurance premium: $1,469
Annual repair costs: $401.65
Monthly payment: $735
Annual payments: $8,820
Total annual cost: $13,969.77
Minimum salary: $116,221
Connecticut
Cost of gas per year: $3,132.48
Average car insurance premium: $1,750
Annual repair costs: $418.37
Monthly payment: $724
Annual payments: $8,688
Total annual cost: $13,988.85
Minimum salary: $116,380
Rhode Island
Cost of gas per year: $2,886.00
Average car insurance premium: $1,845
Annual repair costs: $386.93
Monthly payment: $740
Annual payments: $8,880
Total annual cost: $13,997.93
Minimum salary: $116,455
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Alaska
Cost of gas per year: $3,597.36
Average car insurance premium: $1,359
Annual repair costs: $387.05
Monthly payment: $725
Annual payments: $8,700
Total annual cost: $14,043.41
Minimum salary: $116,834
Montana
Cost of gas per year: $3,400.80
Average car insurance premium: $1,692
Annual repair costs: $389.84
Monthly payment: $714
Annual payments: $8,568
Total annual cost: $14,050.64
Minimum salary: $116,894
Kentucky
Cost of gas per year: $2,870.40
Average car insurance premium: $2,105
Annual repair costs: $384.76
Monthly payment: $729
Annual payments: $8,748
Total annual cost: $14,108.16
Minimum salary: $117,372
Pennsylvania
Cost of gas per year: $3,294.72
Average car insurance premium: $1,445
Annual repair costs: $384.33
Monthly payment: $749
Annual payments: $8,988
Total annual cost: $14,112.05
Minimum salary: $117,405
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Nebraska
Cost of gas per year: $3,120.00
Average car insurance premium: $2,018
Annual repair costs: $374.53
Monthly payment: $718
Annual payments: $8,616
Total annual cost: $14,128.53
Minimum salary: $117,542
Delaware
Cost of gas per year: $3,185.52
Average car insurance premium: $2,137
Annual repair costs: $390.89
Monthly payment: $708
Annual payments: $8,496
Total annual cost: $14,209.41
Minimum salary: $118,215
Michigan
Cost of gas per year: $3,017.04
Average car insurance premium: $2,133
Annual repair costs: $356.29
Monthly payment: $732
Annual payments: $8,784
Total annual cost: $14,290.33
Minimum salary: $118,888
Illinois
Cost of gas per year: $3,213.60
Average car insurance premium: $1,578
Annual repair costs: $379.23
Monthly payment: $761
Annual payments: $9,132
Total annual cost: $14,302.83
Minimum salary: $118,992
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Massachusetts
Cost of gas per year: $3,666.00
Average car insurance premium: $1,538
Annual repair costs: $386.20
Monthly payment: $727
Annual payments: $8,724
Total annual cost: $14,314.20
Minimum salary: $119,087
Missouri
Cost of gas per year: $2,836.08
Average car insurance premium: $2,104
Annual repair costs: $378.85
Monthly payment: $754
Annual payments: $9,048
Total annual cost: $14,366.93
Minimum salary: $119,525
New Jersey
Cost of gas per year: $3,266.64
Average car insurance premium: $1,901
Annual repair costs: $399.61
Monthly payment: $734
Annual payments: $8,808
Total annual cost: $14,375.25
Minimum salary: $119,594
Arizona
Cost of gas per year: $3,310.32
Average car insurance premium: $1,617
Annual repair costs: $388.92
Monthly payment: $761
Annual payments: $9,132
Total annual cost: $14,448.24
Minimum salary: $120,202
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Washington
Cost of gas per year: $3,846.96
Average car insurance premium: $1,371
Annual repair costs: $392.46
Monthly payment: $749
Annual payments: $8,988
Total annual cost: $14,598.42
Minimum salary: $121,451
Colorado
Cost of gas per year: $3,282.24
Average car insurance premium: $1,940
Annual repair costs: $417.14
Monthly payment: $748
Annual payments: $8,976
Total annual cost: $14,615.38
Minimum salary: $121,592
Hawaii
Cost of gas per year: $4,212.00
Average car insurance premium: $1,306
Annual repair costs: $381.23
Monthly payment: $730
Annual payments: $8,760
Total annual cost: $14,659.23
Minimum salary: $121,957
New York
Cost of gas per year: $3,307.20
Average car insurance premium: $2,020
Annual repair costs: $386.55
Monthly payment: $747
Annual payments: $8,964
Total annual cost: $14,677.75
Minimum salary: $122,111
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Florida
Cost of gas per year: $3,098.16
Average car insurance premium: $2,560
Annual repair costs: $396.29
Monthly payment: $736
Annual payments: $8,832
Total annual cost: $14,886.45
Minimum salary: $123,847
Nevada
Cost of gas per year: $3,637.92
Average car insurance premium: $2,023
Annual repair costs: $398.26
Monthly payment: $749
Annual payments: $8,988
Total annual cost: $15,047.18
Minimum salary: $125,185
Louisiana
Cost of gas per year: $2,988.96
Average car insurance premium: $2,546
Annual repair costs: $388.66
Monthly payment: $764
Annual payments: $9,168
Total annual cost: $15,091.62
Minimum salary: $125,554
California
Cost of gas per year: $3,918.72
Average car insurance premium: $2,115
Annual repair costs: $415.66
Monthly payment: $767
Annual payments: $9,204
Total annual cost: $15,653.38
Minimum salary: $130,228
Daria Uhlig and Heather Taylor contributed to the reporting of this article.
Methodology: GOBankingRates determined the salary you need to afford a new car in your state using the following assumptions: MSRP of $47,244 as sourced from Kelley Blue Book’s February 2024 report, a 20% down payment of $9,449, and Total Vehicle Expenses (“Vehicle purchases (net outlay),” “Gas, other fuels and motor fuel” and “Other vehicle expenses (excluding vehicle insurance)”) of 12.180% of one’s income before taxes as sourced from the 2022 Consumer Expenditure Survey from the Bureau of Labor Statistics (BLS). With these constants, GOBankingRates found the following factors for each state: (1) cost of gas per year calculated by sourcing each state’s transportation cost of living index from the Missouri Economic and Research and Information Center’s 2023 cost of living data and factoring it out by the “Gas, other fuels and motor fuel” expenditure from the BLS; (2) average annual insurance costs as sourced from CarInsurance.com; (3) annual repair costs sourced from CarMD’s 2022 State Repair Cost Rankings; (4) annual car loan payments as calculated by CarMax Auto Loan Calculator. Finally, all factors were totaled to find the (5) total annual cost to purchase and operate a new car in each state, which was then divided by 12.180% to give the (6) minimum salary required to afford a new car. All data was collected on and up to date as of April 3, 2024.
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This article originally appeared on GOBankingRates.com: This Is the Salary You Need To Afford a New Car in Your State
