This Is the Salary You Need To Afford a New Car in Your State
You might already know that feeling of exhilaration when you’re handed the keys to a new car. It’s a feeling that lasts long after you start up the engine and drive your new vehicle off the lot.
The one thing that can damper that feeling, however, is the arrival of the payment due date, which means that you’ll have to start forking over a portion of your hard-earned salary each month to pay for your new purchase. And owning a car isn’t exactly cheap: The average salary needed to afford a car across all U.S. states is $81,699.
If that sounds like a lot, consider that when you own a car, it’s not just the car payments that you have to budget for. Drivers also need to factor in other costs like repairs — expected or unexpected — and fuel. It shouldn’t be a surprise that owning a car takes some serious cash. According to data from the Bureau of Labor Statistics, transportation is often the second-largest annual expenditure — out of food, housing, transportation, healthcare and personal insurance — for U.S. families.
GOBankingRates looked at a variety of factors to determine the average salary needed in each state to fit the expense of a new car ? which will run you an average of $37,169 in the U.S., according to Kelly Blue Book ? comfortably into your budget. The study factored in average annual car payments, miles per gallon, fuel expenses, repair costs and registration fees. The state rankings are based on the minimum salary needed from lowest to highest.
Last updated: Oct. 28, 2020
Alaska
Annual gas cost: $1,710.04
Annual repair cost: $362.12
Annual payments: $5,832
Registration fee: $50 ($100 biennially)
Total annual cost: $7,954
Minimum salary needed: $75,576.13
Related: 35 Ways To Slash Your Car Costs
New Hampshire
Annual gas cost: $1,831.55
Annual repair cost: $345.70
Annual payments: $5,760
Registration fee: $43.20
Total annual cost: $7,980
Minimum salary needed: $75,825.87
Iowa
Annual gas cost: $1,558.62
Annual repair cost: $339.93
Annual payments: $6,156
Registration fee: $16
Total annual cost: $8,071
Minimum salary needed: $76,682.04
Montana
Annual gas cost: $1,759.85
Annual repair cost: $373.76
Annual payments: $5,748
Registration fee: $217
Total annual cost: $8,099
Minimum salary needed: $76,948.60
Delaware
Annual gas cost: $1,629.15
Annual repair cost: $373.94
Annual payments: $6,084
Registration fee: $40
Total annual cost: $8,127
Minimum salary needed: $77,219.23
Oregon
Annual gas cost: $1,940.06
Annual repair cost: $366.37
Annual payments: $5,796
Registration fee: $43
Total annual cost: $8,145
Minimum salary needed: $77,393.47
Massachusetts
Annual gas cost: $1,574.91
Annual repair cost: $363.71
Annual payments: $6,252
Registration fee: $60
Total annual cost: $8,251
Minimum salary needed: $78,392.91
Virginia
Annual gas cost: $1,772.94
Annual repair cost: $381.68
Annual payments: $6,060
Registration fee: $40.75
Total annual cost: $8,255
Minimum salary needed: $78,438.07
Alabama
Annual gas cost: $1,777.35
Annual repair cost: $374.09
Annual payments: $6,108
Registration fee: $23
Total annual cost: $8,282
Minimum salary needed: $78,695.22
Rhode Island
Annual gas cost: $1,545.09
Annual repair cost: $379.61
Annual payments: $6,324
Registration fee: $39.33 ($30 for vehicles under 4,000 lbs., $40 for vehicles 4,000-5,000 lbs. and $48 for vehicles 5,000-6,000 lbs.)
Total annual cost: $8,288
Minimum salary needed: $78,748.43
South Carolina
Annual gas cost: $2,048.94
Annual repair cost: $370.07
Annual payments: $5,856
Registration fee: $40
Total annual cost: $8,315
Minimum salary needed: $79,004.68
Nebraska
Annual gas cost: $1,804.06
Annual repair cost: $349.75
Annual payments: $6,156
Registration fee: $15
Total annual cost: $8,325
Minimum salary needed: $79,097.85
Ohio
Annual gas cost: $1,626.13
Annual repair cost: $335.26
Annual payments: $6,360
Registration fee: $34.50
Total annual cost: $8,356
Minimum salary needed: $79,393.10
Connecticut
Annual gas cost: $1,648.69
Annual repair cost: $393.16
Annual payments: $6,252
Registration fee: $80
Total annual cost: $8,374
Minimum salary needed: $79,563.82
Oklahoma
Annual gas cost: $1,872.95
Annual repair cost: $358.04
Annual payments: $6,060
Registration fee: $85
Total annual cost: $8,376
Minimum salary needed: $79,584.10
Wisconsin
Annual gas cost: $1,787.86
Annual repair cost: $337.89
Annual payments: $6,216
Registration fee: $75
Total annual cost: $8,417
Minimum salary needed: $79,971.42
North Carolina
Annual gas cost: $1,951.94
Annual repair cost: $375.42
Annual payments: $6,060
Registration fee: $36
Total annual cost: $8,423
Minimum salary needed: $80,034.20
South Dakota
Annual gas cost: $1,856.14
Annual repair cost: $364.79
Annual payments: $6,156
Registration fee: $90
Total annual cost: $8,467
Minimum salary needed: $80,448.22
North Dakota
Annual gas cost: $1,802.75
Annual repair cost: $339.78
Annual payments: $6,192
Registration fee: $161.50
Total annual cost: $8,496
Minimum salary needed: $80,724.65
Tennessee
Annual gas cost: $1,787.99
Annual repair cost: $372.84
Annual payments: $6,312
Registration fee: $23.75
Total annual cost: $8,497
Minimum salary needed: $80,729.90
Mississippi
Annual gas cost: $1,957.59
Annual repair cost: $370.06
Annual payments: $6,156
Registration fee: $15
Total annual cost: $8,499
Minimum salary needed: $80,749.53
Colorado
Annual gas cost: $1,716.85
Annual repair cost: $375.57
Annual payments: $6,408
Registration fee: $0
Total annual cost: $8,500
Minimum salary needed: $80,766.40
New Mexico
Annual gas cost: $2,085.10
Annual repair cost: $360.99
Annual payments: $6,012
Registration fee: $44.50
Total annual cost: $8,503
Minimum salary needed: $80,787.05
Pennsylvania
Annual gas cost: $1,878.43
Annual repair cost: $359.63
Annual payments: $6,240
Registration fee: $36
Total annual cost: $8,514
Minimum salary needed: $80,895.99
Find Out: 17 Hidden Auto Costs Your Dealer Will Never Tell You About
Indiana
Annual gas cost: $1,943.70
Annual repair cost: $360.95
Annual payments: $6,264
Registration fee: $21.35
Total annual cost: $8,590
Minimum salary needed: $81,617.57
Missouri
Annual gas cost: $2,004.87
Annual repair cost: $357.80
Annual payments: $6,185
Registration fee: $51
Total annual cost: $8,599
Minimum salary needed: $81,702.61
West Virginia
Annual gas cost: $1,959.13
Annual repair cost: $358.50
Annual payments: $6,264
Registration fee: $30
Total annual cost: $8,612
Minimum salary needed: $81,823.04
New York
Annual gas cost: $1,777.24
Annual repair cost: $377.28
Annual payments: $6,420
Registration fee: $53.75 (Biennial registration fees start at $26 for vehicles under 1,650 lbs. and increase $1.50 for every 100 lbs. over)
Total annual cost: $8,628
Minimum salary needed: $81,981.15
Kansas
Annual gas cost: $1,714.99
Annual repair cost: $352.67
Annual payments: $6,528
Registration fee: $35 ($30 for vehicles less than 4,500 lbs., or $40 for vehicles over 4,500 lbs.)
Total annual cost: $8,631
Minimum salary needed: $82,003.90
Louisiana
Annual gas cost: $1,700.62
Annual repair cost: $366.56
Annual payments: $6,540
Registration fee: $37.17 (Automobile license plates are based upon the selling price of the vehicle. The current rate is 0.1% of the value of the vehicle per year, with a minimum base of $10,000.)
Total annual cost: $8,644
Minimum salary needed: $82,133.92
Florida
Annual gas cost: $1,737.77
Annual repair cost: $366.68
Annual payments: $6,288
Registration fee: $257.50 ($225 initial registration plus $14.50 for vehicles under 2,500 lbs., $22.50 for vehicles 2,500-3,499 lbs. and $32.50 for vehicles over 3,500 lbs.)
Total annual cost: $8,650
Minimum salary needed: $82,187.18
Maryland
Annual gas cost: $1,880.28
Annual repair cost: $379.49
Annual payments: $6,264
Registration fee: $135
Total annual cost: $8,659
Minimum salary needed: $82,270.92
Maine
Annual gas cost: $2,142.51
Annual repair cost: $337.74
Annual payments: $6,156
Registration fee: $35
Total annual cost: $8,671
Minimum salary needed: $82,389.52
Idaho
Annual gas cost: $2,031.98
Annual repair cost: $362.24
Annual payments: $6,228
Registration fee: $69
Total annual cost: $8,691
Minimum salary needed: $82,579.28
Hawaii
Annual gas cost: $2,067.83
Annual repair cost: $389.19
Annual payments: $6,120
Registration fee: $69
Total annual cost: $8,692
Minimum salary needed: $82,586.83
Georgia
Annual gas cost: $2,036.60
Annual repair cost: $395.05
Annual payments: $6,264
Registration fee: $20
Total annual cost: $8,716
Minimum salary needed: $82,811.39
Michigan
Annual gas cost: $1,866.61
Annual repair cost: $333.26
Annual payments: $6,288
Registration fee: $234
Total annual cost: $8,722
Minimum salary needed: $82,870.50
New Jersey
Annual gas cost: $1,966.80
Annual repair cost: $384.92
Annual payments: $6,288
Registration fee: $84 (Fee based on age and weight of vehicle)
Total annual cost: $8,724
Minimum salary needed: $82,888.04
Washington
Annual gas cost: $1,999.02
Annual repair cost: $368.43
Annual payments: $6,408
Registration fee: $30
Total annual cost: $8,805
Minimum salary needed: $83,664.63
Vermont
Annual gas cost: $2,121.34
Annual repair cost: $357.48
Annual payments: $6,264
Registration fee: $70 ($140 biennially)
Total annual cost: $8,813
Minimum salary needed: $83,734.63
Minnesota
Annual gas cost: $1,708.24
Annual repair cost: $353.28
Annual payments: $6,300
Registration fee: $471.61 (Registration fee based on the value of the vehicle. $10 plus an additional tax equal to 1.25% of the base value of the vehicle.)
Total annual cost: $8,833
Minimum salary needed: $83,927.59
Texas
Annual gas cost: $2,193.13
Annual repair cost: $361.89
Annual payments: $6,252
Registration fee: $50.75
Total annual cost: $8,858
Minimum salary needed: $84,161.73
Illinois
Annual gas cost: $1,933.10
Annual repair cost: $352.54
Annual payments: $6,504
Registration fee: $101
Total annual cost: $8,891
Minimum salary needed: $84,474.08
Kentucky
Annual gas cost: $2,369.89
Annual repair cost: $368.36
Annual payments: $6,192
Registration fee: $21
Total annual cost: $8,951
Minimum salary needed: $85,049.96
Utah
Annual gas cost: $2,342.41
Annual repair cost: $374.17
Annual payments: $6,336
Registration fee: $43
Total annual cost: $9,096
Minimum salary needed: $86,421.30
Arkansas
Annual gas cost: $2,418.48
Annual repair cost: $363.10
Annual payments: $6,300
Registration fee: $25 ($25 for vehicles 3,000-4,500 lbs.)
Total annual cost: $9,107
Minimum salary needed: $86,525.81
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Wyoming
Annual gas cost: $2,728.32
Annual repair cost: $366.63
Annual payments: $6,120
Registration fee: $30
Total annual cost: $9,245
Minimum salary needed: $87,840.50
Arizona
Annual gas cost: $2,227.90
Annual repair cost: $360.85
Annual payments: $6,720
Registration fee: $8
Total annual cost: $9,317
Minimum salary needed: $88,522.73
California
Annual gas cost: $2,196.38
Annual repair cost: $385.42
Annual payments: $6,756
Registration fee: $46
Total annual cost: $9,384
Minimum salary needed: $89,159.82
Nevada
Annual gas cost: $3,051.04
Annual repair cost: $372.36
Annual payments: $6,432
Registration fee: $33
Total annual cost: $9,888
Minimum salary needed: $93,954.19
More From GOBankingRates
Methodology: GOBankingRates determined the minimum salary you need to afford a new car in your state using the following assumptions: the car has an MSRP of $37,169 — the average cost for a light vehicle in the United States, according to a July 2019 report from Kelley Blue Book — the car has a weight of 3,500 pounds and the driver makes a 20% down payment of $7,434. The study also factored in total vehicle expenses (?vehicle purchases [net outlay]?), gas (“other fuels and motor fuel?), and ?other vehicle expenses” (excluding vehicle insurance) making up 10.5247% of one’s income before taxes, as sourced from the 2017 Consumer Expenditure Survey from the Bureau of Labor Statistics. With these constants GOBankingRates found the following factors for each state: (1) average number of miles driven, sourced from the Federal Highway Administration; (2) average miles per gallon, sourced from the Federal Highway Administration; (3) average price of regular gas per gallon, sourced from AAA; (4) cost of gas per year calculated by dividing factors three and two and taking that figure and multiplying it by factor one; (5) registration fees, sourced from the National Conference of State Legislatures 2017 Vehicle Registration Fees presentation; (6) annual repair costs, sourced from CarMd?s 2018 State Repair Cost Rankings; and (7) annual car loan payments as calculated by both CarMax and the Hawaiian Hawaii Community Federal Union: Auto Loan Calculator. Factors four, five, six and seven were combined to give a final (8) total annual cost, which was then divided by 10.5247% to give (9) the minimum salary required to afford a new car.
Data is accurate as of August 27, 2019, and is subject to change.
This article originally appeared on GOBankingRates.com: This Is the Salary You Need To Afford a New Car in Your State
