Study finds Midwest is best for affordability in buying and owning a car
Image courtesy of National Business Capital.
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You want to find the least expensive place to buy and own a car. Where are you headed?
To the Midwest, according to a study by National Business Capital. The business lending platform’s analysis of the full cost of buying and owning a typical vehicle — from the purchase price, sales tax and insurance to fuel, fees and even road quality — showed a “clear regional divide,” with Ohio and Indiana ranking first and second and the Midwest as whole topping all other regions with an affordability score of 59.4 on a 100-point scale
According to the second annual report, The Best States to Buy and Operate a Car, Ohio’s score of 77.8 and Indiana’s 76.2 both surpassed 2024 champion Vermont (72.3), as well as Delaware (70.7), Wisconsin (65.3), Iowa (64.6), Kentucky (63.2), Massachusetts (62.8), Pennsylvania (62.7) and North Dakota (62.6).
Massachusetts is notable for making a huge leap upward in a year, rising 25 spots from 33rd to eighth.
National Business Capital said the scores are based on seven weighted factors, including the median used car listing price, average gas price, insurance costs, sales tax, other fees and taxes, dealer document fees and road condition.
On the other end of the spectrum, the West is the most expensive region, thanks to the nation’s highest used-car costs and spiraling gas prices. Arizona ranks as the most expensive state with a score of just 13.9, with fellow Western states Nevada (28.6), Hawaii (33.1), California (39.2), Colorado (34.0), Washington (40.4), New Mexico (40.7) and Utah (41.5) in the bottom 10.
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The only non-western outliers among the 10 worst are No. 49 Oklahoma (28.2) and No. 42 Maryland (41.4).
“Americans love their cars, but no one loves the cost,” National Business Capital CEO Joe Camberato said. “It’s shocking how different those costs are at both ends of Route 66.”
The data showed the average gas price in Pacific states is $4.24 a gallon, nearly 50% more than in the South — not surprisingly, California has the highest average fuel price at $4.61 — and used cars listings in the Mountain West average more than $25,000. The Northeast has the lowest used-vehicle prices, with an average listing of $14,904.
The West also has the worst roads, with just 73.9% of state roads considered to be in acceptable condition by the Bureau of Transportation Statistics, while the Midwest ranked first with 88.1%. National Business Capital said it included that metric because poor road conditions increase wear and tear on vehicles, leading to more frequent repairs.
In the South, fuel costs are low, but in many states hidden expenses like personal property taxes and dealer documentation fees, drive the cost of purchase and ownership up, the report said.
The full study is available here.
