This generated the total costs of buying and owning a car in each state, and states were ranked according to this total to find the least and most expensive. Tap here to turn on desktop notifications to get the news sent straight to you. These higher costs are offset after owning a car for just one year, with Idaho drivers saving $348 a year. Similarly, in South Carolina ($1,633), a personal property tax collected by local jurisdictions adds up. Georgia drivers will need to watch recurring car expenses, as this is where their costs of owning a car will add up the most. But car buyers will pay way more than the national average to cover the 7.25 percent auto sales tax and higher $95 title fee. Only four other states have no sales tax on vehicle purchases: Oregon, Delaware, Montana and Alaska. In fact, depending on where you live, your state could add up to $7,217 to the cost of buying, maintaining and owning a car for three years. Kentucky residents pay more than average to buy a car, and less than average for ongoing costs. While Michigan has cheaper gas prices and car repair costs, it also has the highest insurance premiums of any state. This is largely due to the high auto insurance premiums at $2,297 a year, 73 percent higher than the national average, according to a 2016 report from Insure.com. Washington is the first state among the 10 states with the highest car ownership costs.
For all expenses, however, Mississippi offers savings with below-average costs. The initial fees that come into play when first buying a car will only run you up to a maximum of $130 in places like Portland, Oregon as of 2018, which is significantly cheaper than most other states. Today is National Voter Registration Day! Lower gas prices and a nominal title fee of just $7.25 will offer some savings.
Its drivers face lower gas prices and fees for title transfers and registration.
The biggest source of these savings are low Illinois car insurance premiums, which -- at $1,035 a year -- offer annual savings of $290 compared to the national average. Arizona drivers save the most on registration, with a low fee of just $9.50, and title fees, car insurance and repair and maintenance. Michigan's strict no-fault insurance laws require drivers to purchase wider and more comprehensive auto insurance policies that are also the most expensive, according to Insure.com. Related: 30 Biggest Dos and Don'ts When Buying a Car. For a typical new vehicle, drivers should expect an annual registration fee of around $350.
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