Forbes has a slideshow of the best and worst places to own a car, and you might be surprised at a few of the winners and losers. The rankings are based on the results of Edmunds.com's True Cost to Own (TCO) study. That study takes into account depreciation, financing, insurance, taxes and fees, fuel, maintenance, and repairs, and figures out how much those little costs you rarely consider as a lump sum will really subtract from your bank account over time. (Or pockets or shoeboxes, depending on where you keep your money.)
Depreciation and fuel are, of course, the biggest costs, and insurance can add a fair chunk over time. The difference between the last spot and the first spot on each list wasn't great -- about $4,000 in each case. But the difference between the best place (least expensive) to own a car and the worst place (most expensive) -- which wasn't New York City -- worked out to almost $12,000 over five years. Click the link to see if your state made either list. And if you want to get the TCO for your specific car, then check out the TCO calculator for yourself.
[Source: Forbes]
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Reader Comments (Page 1 of 1)
dcjensen @ Feb 14th 2008 7:24PM
I wasn't aware that New York City is a state now.
Paul Y @ Feb 14th 2008 7:29PM
Yeah, the rest of us in the part that isn't impossibly expensive to live in were wondering the same thing.
Ian @ Feb 14th 2008 8:13PM
How are they getting these costs? Are they taking like a standard basket of repairs and comparing it against average shop rates? Because it don't work like that.
Alaska should beat the hell out of everyone else on repairs and maintenance. You have your choice of rust or temperature-related damage (rapid temp changes destroy seals and put glass at risk), and you have bad roads and rock damage in either case.
Also, I'm really skeptical that the depreciation would be so close everywhere. I mean maybe if you're throwing your car into the wholesale car system, where they're getting shipped all over the country. But I have doubts that salt states depreciation is that close to the desert states.
Because slideshows suck:
BEST
No. 10: Ohio
Taxes & Fees: $2,339
Depreciation: $18,174
Finance & Interest: $5,814
Insurance: $7,019
Fuel Costs: $13,311
Maintenance: $3,663
Repairs: $914
Total True Cost to Own: $51,234
No. 9: New Mexico
Taxes & Fees: $2,216
Depreciation: $18,229
Finance & Interest: $5,916
Insurance: $6,940
Fuel Costs: $12,765
Maintenance: $4,055
Repairs: $1,036
Total True Cost to Own: $51,157
No. 8: Georgia
Taxes & Fees: $3,217
Depreciation: $18,037
Finance & Interest: $5,712
Insurance: $6,355
Fuel Costs: $13,202
Maintenance: $3,666
Repairs: $914
Total True Cost to Own: $51,103
No. 7: Massachusetts
Taxes & Fees: $3,283
Depreciation: $18,208
Finance & Interest: $5,487
Insurance: $6,640
Fuel Costs: $13,240
Maintenance: $3,300
Repairs: $812
Total True Cost to Own: $50,970
No. 6: North Dakota
Taxes & Fees: $2,009
Depreciation: $18,305
Finance & Interest: $5,854
Insurance: $6,645
Fuel Costs: $13,332
Maintenance: $3,499
Repairs: $871
Total True Cost to Own: $50,515
No. 5: Wisconsin
Taxes & Fees: $1,994
Depreciation: $18,282
Finance & Interest: $5,614
Insurance: $5,956
Fuel Costs: $13,396
Maintenance: $4,115
Repairs: $1,061
Total True Cost to Own: $50,417
No. 4: Oregon
Taxes & Fees: $159
Depreciation: $18,316
Finance & Interest: $5,865
Insurance: $7,885
Fuel Costs: $13,280
Maintenance: $3,781
Repairs: $981
Total True Cost to Own: $50,268
No. 3: South Carolina
Taxes & Fees: $407
Depreciation: $18,037
Finance & Interest: $5,338
Insurance: $8,705
Fuel Costs: $12,719
Maintenance: $3,454
Repairs: $855
Total True Cost to Own: $49,515
No. 2: South Dakota
Taxes & Fees: $1,757
Depreciation: $18,305
Finance & Interest: $5,929
Insurance: $5,638
Fuel Costs: $13,308
Maintenance: $3,633
Repairs: $914
Total True Cost to Own: $49,483
No. 1: New Hampshire
Taxes & Fees: $250
Depreciation: $18,305
Finance & Interest: $5,213
Insurance: $6,507
Fuel Costs: $13,216
Maintenance: $3,276
Repairs: $829
Total True Cost to Own: $47,499
WORST
No. 10: Arizona
Taxes & Fees: $4,232
Depreciation: $18,229
Finance & Interest: $6,308
Insurance: $9,275
Fuel Costs: $12,832
Maintenance: $4,143
Repairs: $1,061
Total True Cost to Own: $56,080
No. 9: New York
Taxes & Fees: $2,826
Depreciation: $18,201
Finance & Interest: $5,869
Insurance: $10,543
Fuel Costs: $14,183
Maintenance: $3,628
Repairs: $897
Total True Cost to Own: $56,147
No. 8: Washington, D.C.
Taxes & Fees: $2,357
Depreciation: $18,185
Finance & Interest: $5,748
Insurance: $12,293
Fuel Costs: $13,335
Maintenance: $3,845
Repairs: $973
Total True Cost to Own: $56,736
No. 7: Louisiana
Taxes & Fees: $2,715
Depreciation: $18,049
Finance & Interest: $5,714
Insurance: $12,874
Fuel Costs: $12,936
Maintenance: $3,657
Repairs: $905
Total True Cost to Own: $56,850
No. 6: Connecticut
Taxes & Fees: $2,190
Depreciation: $18,208
Finance & Interest: $5,609
Insurance: $12,057
Fuel Costs: $14,090
Maintenance: $4,096
Repairs: $1,053
Total True Cost to Own: $57,303
No. 5: West Virginia
Taxes & Fees: $2,068
Depreciation: $18,185
Finance & Interest: $5,627
Insurance: $13,031
Fuel Costs: $13,799
Maintenance: $3,849
Repairs: $973
Total True Cost to Own: $57,532
No. 4: Nevada
Taxes & Fees: $4,036
Depreciation: $18,326
Finance & Interest: $6,110
Insurance: $10,616
Fuel Costs: $13,406
Maintenance: $4,191
Repairs: $1,078
Total True Cost to Own: $57,763
No. 3: Alaska
Taxes & Fees: $538
Depreciation: $19,143
Finance & Interest: $5,966
Insurance: $13,384
Fuel Costs: $13,846
Maintenance: $4,097
Repairs: $1,078
Total True Cost to Own: $58,052
No. 2: California
Taxes & Fees: $3,282
Depreciation: $18,194
Finance & Interest: $6,467
Insurance: $11,670
Fuel Costs: $14,280
Maintenance: $4,335
Repairs: $1,120
Total True Cost to Own: $59,347
No. 1: Hawaii
Taxes & Fees: $1,847
Depreciation: $19,152
Finance & Interest: $6,237
Insurance: $12,744
Fuel Costs: $14,833
Maintenance: $3,705
Repairs: $939
Total True Cost to Own: $59,457
Franz @ Feb 15th 2008 1:35AM
Thanks a lot Ian. Slideshows really do suck.
Dan @ Feb 14th 2008 8:31PM
They weren't listing New York City. They listed New York. They only included an image of the City. As an upstate NY resident, I can vouch for this spot on the list.
tekdemon @ Feb 17th 2008 3:32AM
If they broke out NYC I can almost guarantee it'd beat Washington, DC in costs between insurance and parking.
Seriously, just parking can run you like $5000 a year in Manhattan for your own parking spot, and that's not even counting the parking fees you'd end up racking up trying to actually use your car in NYC.
Anyways, in most places it seems like gasoline and taxes make most of the difference. Heh, my brother lives in NH...gotta convince him to buy a car there instead of back here.
sr20de @ Feb 14th 2008 9:22PM
I'm shocked to see MA show up on the "best" list. Moving from MA to NH saved me a significant amount of money- mostly because of the cost of insurance. They also charge you bogus excise tax based on the value of your car every year. Owning a car in MA sucks!
Galley @ Feb 14th 2008 9:56PM
In South Carolina, sales tax on vehicles is capped at $300. Property taxes are $300-400 annually, plus a $12 registration fee. Our fuel prices are among the lowest in the nation.
John R @ Feb 15th 2008 6:26AM
So it doesn't matter what kind of car I buy or how big my house is I'm only going to pay $300 and $300-400?
If this is true I'll buy next car in SC.
Ian @ Feb 14th 2008 10:49PM
Yeah, there are gigantic holes in their methodology.
And I'd rather see the cost of owning a 10 year old car. That would really highlight every difference except the initial sales tax.
Alvin Brinson @ Feb 15th 2008 3:00AM
Agreed on the 10 year old car bit. I have to laugh when they say it costs $50,000+ to own a car for 4 or 5 years. That's NOT the "True Cost" to own a car - it may be the true cost to BUY A NEW CAR, but not to own one.
Show me what it costs to own/operate a 1990 Toyota Corolla, and not "du-hur, everyone is rich" type reporting. Of course, this IS Forbes that did the report, so maybe they honestly believe everyone sends cars to the junkyard after 50,000 miles?
catgirlshyla @ Feb 15th 2008 3:28AM
They haven't seen Hawaii. A good 50% the cars are 15 Yr++ old junkers fixed by some backyard mechanic, and a good number of the "new" stuff is either Military or Tourists.
Galley @ Feb 15th 2008 7:24AM
@John R. Yes, the sales tax is limited to $300, on ANY vehicle purchase, but I'm pretty sure you have to be a SC resident. Our vehicles are taxed like property, based on their value. Taxes on my 2000 Stratus last year were less than $100.
garlinski @ Feb 15th 2008 10:36AM
I live in CT and it really does stink ownign a car here. We have Property Tax on vehicles or all shapes and sizes, similar to other states. But here's the real rub about it, my wife and I were having out first child less than 2 years ago and decided to trade in our older used vehicles for 2 new VW Jetta 2.5's. Simple cars to get the job done and have nearly no repair costs (still to this day too!!) to worry about for the first 3 years. Good feeliogns utnil July rolls around and BAM! $555.89 PER CAR in property tax. I LOVE the exotics that I see rolling around here on a daily basis but if it's $555 dollars for a $23k Jetta I'd hate to know what it is for the Bently GT's, Flying Spurs, Porsches and everything else run. Good grief. Actualyl my car insurance is the lowest it's ever been. Go figure.
garlinski @ Feb 15th 2008 10:36AM
I need spell check!
Croydon @ Feb 15th 2008 6:46PM
So nice to see all the hidden taxes being exposed in the USA - no property taxes in cars in Canada - we just get ripped off in the pricing - least expensive Subaru lists at $30k plus vs 21,900 in USA
BTW: what's the South Carolina school system like ? Low taxes and no deficits = low expenses. My kids are worth more than any car ...