Report: R.I. one of most expensive states to own a car

RHODE ISLAND is the seventh most expensive state to own a car, while New Hampshire is the least expensive, according to a study by GOBankingrates.com. / COURTESY GOBANKINGRATES.COM
RHODE ISLAND is the seventh most expensive state to own a car, while New Hampshire is the least expensive, according to a study by GOBankingrates.com. / COURTESY GOBANKINGRATES.COM

PROVIDENCE – Rhode Island is the seventh-most expensive state to own a car, according to a GOBankingRates.com study that reviewed car ownership over a three-year period.
The personal finance website looked at all 50 states plus the District of Columbia to determine which states were the most expensive to own a car, and which were the least.
In Rhode Island, the total cost of car ownership is $12,895.61 over a three-year period, compared with New Hampshire’s $8,098, the cheapest state for car ownership, and Michigan’s $15,314.53, the most expensive.
New Hampshire is inexpensive because it does not levy sales tax on car purchases, and also has low insurance premiums and maintenance costs, the study found. Maine also made the top 10 for most inexpensive states for car ownership, coming in ninth for its expenses of $9,866 over three years.
Rhode Island, the study said, has expensive maintenance costs, and a sales tax of 7 percent. It said Ocean State drivers face annual ownership and usage costs of $3,499, and also spend $1,669 more than the national average to buy and own a car for three years.
Michigan’s high insurance premiums – the state has no-fault insurance laws – helped propel it into the top spot as the most expensive state for car ownership, the study said.

“The common costs of owning a car outside of the car payment quickly add up – our survey found that the average costs of owning a car for three years is $11,227,” Elyssa Kirkham, lead reporter on the study for GOBankingRates.com, said in a statement. “Typically, car owners should keep their costs low – around 15 percent of their income for the car payment, insurance, gas and so on – which is trickier in states with higher car costs.”
To find out the real costs of owning a car, GOBankingRates.com said it analyzed key expenses of car ownership, besides the cost of the vehicle itself.
It said that in addition to auto payments, U.S. car owners will pay an extra $11,227 on average to buy and own a car for three years. That amount includes car sales tax and title fees as well as registration fees, car insurance, gas and car maintenance costs.
In the 10 states where it is cheapest to own a car, total car expenses stayed under $10,000 (not including the car’s sticker price).

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