If you bought a car in Alaska or Hawaii you'd probably expect it to cost more than if you bought it in, say, Michigan or Ohio, because of the extra freight costs involved. Gas prices are higher in those distant states, too, so you'd expect the car to cost more in the long run.



Full List: The Best And Worst States To Own A Car

Where you live can make a big difference in the cost of owning a vehicle--a lesson worth remembering next time you're shopping for a new car. The price can differ state-by-state, thanks to regional incentives, for instance, and destination, or freight charges, can vary depending on the distance the car has to be shipped. Beyond that, you need to consider more than just the sticker price or monthly lease payment. You need to insure it, finance it, maintain it and keep the gas tank filled.

Automotive research website Edmunds.com lets car shoppers see the big picture with its proprietary True Cost to Own formula, which takes note of where you live to calculate your average five-year cost for depreciation, financing, taxes, fees, insurance premiums, fuel costs, maintenance and repairs on a range of new and used vehicles.


The two biggest factors tend to be taxes and fees and the cost of insurance. In Oregon, for example, car buyers pay an average of just $129 in fees, but in Arizona, they'll pay an average $4,346. Insurance is cheapest in South Dakota ($4,723) and most expensive in Alaska ($11,481). In West Virginia and Louisiana, insurance will run about $11,000 over five years, but you'll pay half that if you live in Georgia or North Dakota.


You're not likely to drive to New Jersey to get your car serviced, so if you're in one of those high-cost-to-own states, you can at least compare the total cost of ownership for different vehicles on your shopping list. Remember that buying a more expensive vehicle means you'll probably pay higher sales tax and more interest on your car loan, which could end up costing you more than you bargained for.

Full List: The Best And Worst States To Own A Car