SD is 6th Least Expensive State to Operate a Motor Vehicle

carownershipBankrate just published a review of car-ownership costs by state and South Dakota is the 6th least expensive state to own and operate a car. Figures were based on cost analyses of gasoline, repairs, and insurance. The average annual cost of car ownership in South Dakota is $2,022 per vehicle.

The top 5 states are:

  • Iowa – $1,942 (1st)
  • Ohio – $1,973 (2nd)
  • Illinois – $1,999 (3rd)
  • Idaho – $2,001 (4th)
  • Wisconsin – $2,018 (5th)

On the cost spectrum, South Dakota averaged:

  • $315 for Repairs (3rd lowest)
  • $630 for Insurance (2nd lowest)
  • $1,056 for Gasoline (42nd lowest)

There are two factors excluded from this study that can make a huge difference in the annual cost of owning your car – Personal Property Taxes (and other mandated taxes relating to automobiles) and Registration Fees.

Happily, South Dakota’s registration fees are very reasonable and we are not subject to a personal property tax. So it’s safe to say that South Dakota would easily be sitting in the top 5 with these additional factors considered.

And just because I like to see the spectrum…

5 Most Expensive States to Own A Car:

  • Wyoming – $2,705 (51st) … does this surprise anyone else?
  • Louisiana – $2,555 (50th)
  • Florida – $2,516 (49th)
  • Mississippi – $2,487 (48th)
  • New Jersey – $2,421 (47th)

A full list of costs by each state are available here.

Categories: Rankings, South Dakota Advantage

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