Special Report

This is How Much It Costs to Drive in New Mexico Compared to Other States

ferrantraite / Getty Images

Car prices are surging in the United States. Rising demand, in conjunction with a limited supply of new vehicles on dealer lots, has led to a 45% increase in the consumer price index for used vehicles since June 2020. Perhaps now more than ever, car buyers should bear in mind that the cost of vehicle ownership goes well beyond sticker price.

These costs are not uniform across the country, however, and in some states, motorists can expect to spend thousands more per year than in others.

Between insurance, fuel, and maintenance and repairs, the typical motorist in New Mexico can expect to spend about $2,896 per year on vehicle ownership — the 15th highest annual cost estimate among states. Nationwide, the average cost is about $2,807.

One of the largest drivers of vehicle ownership expenses is insurance, and just as the overall cost of ownership in New Mexico is closely in line with the national average, so too are insurance costs. The average annual insurance payment for a single, 40-year old male with a clean record and good credit in the state is $1,391, compared to the national average of $1,428.

Estimated annual driving costs at the state level were calculated based on the average cost of insurance, gasoline, and repair when the check engine light comes on. Data on the average cost of repair, including parts and labor, came from automobile software developer CarMD. Data on the average annual insurance costs by state came from car review website insure.com and are based on full coverage for a single, 40 year-old male with a clean record and good credit and are for the 2021 model-year versions of the 20 best-selling vehicles in the U.S. Data on average gasoline expenditure per driver was calculated using total vehicle miles traveled by state in 2019 from the Federal Highway Administration; the total number of licensed drivers; the average price of a regular gallon of gasoline by state as of July 20, 2021 from AAA; and the average fuel economy for all U.S. vehicles in 2019 from the Environmental Protection Agency.

Due to incomplete data, Alaska was excluded from analysis.

 

Rank State Avg. annual cost of car ownership ($) Avg. gas price as of June 20, 2021 ($ per gal.) Avg. annual insurance costs ($) Annual fuel expenditure per licensed driver ($)
1 Louisiana 4,123 2.82 2,839 892
2 Wyoming 3,984 3.45 1,768 1,833
3 California 3,798 4.32 1,966 1,418
4 Michigan 3,471 3.27 2,112 1,008
5 Florida 3,369 2.99 2,082 894
6 Missouri 3,369 2.84 1,895 1,098
7 Texas 3,193 2.84 1,710 1,089
8 Georgia 3,161 2.98 1,705 1,046
9 Colorado 3,139 3.53 1,574 1,164
10 Montana 3,126 3.20 1,627 1,110
11 Utah 3,097 3.79 1,250 1,447
12 South Dakota 3,035 3.09 1,575 1,083
13 Rhode Island 3,029 3.04 1,801 840
14 Connecticut 2,914 3.16 1,580 932
15 New Mexico 2,896 3.09 1,391 1,125
16 Mississippi 2,881 2.78 1,378 1,107
17 Maryland 2,853 3.04 1,410 1,044
18 Nevada 2,846 3.89 1,380 1,070
19 Minnesota 2,827 3.00 1,407 1,049
20 Arkansas 2,822 2.86 1,462 978
21 West Virginia 2,812 3.05 1,299 1,136
22 Oklahoma 2,766 2.87 1,393 994
23 North Dakota 2,765 3.08 1,234 1,174
24 South Carolina 2,743 2.92 1,409 941
25 Kentucky 2,716 2.93 1,321 1,006
26 Washington 2,709 3.84 1,298 1,018
27 Nebraska 2,709 3.00 1,383 962
28 Oregon 2,693 3.70 1,229 1,070
29 Kansas 2,686 2.94 1,454 860
30 New Jersey 2,682 3.18 1,319 960
31 Delaware 2,679 3.00 1,443 846
32 Alabama 2,649 2.84 1,358 893
33 Massachusetts 2,644 3.03 1,314 950
34 North Carolina 2,605 2.90 1,326 876
35 Tennessee 2,585 2.88 1,206 980
36 Arizona 2,575 3.13 1,417 772
37 Hawaii 2,547 4.08 1,254 890
38 Illinois 2,532 3.40 1,205 955
39 Virginia 2,492 2.98 1,033 1,056
40 Idaho 2,453 3.67 985 1,081
41 Iowa 2,386 2.99 1,032 997
42 Indiana 2,370 3.14 1,189 823
43 New York 2,270 3.20 1,163 731
44 Wisconsin 2,253 3.02 938 965
45 Pennsylvania 2,248 3.26 1,028 841
46 Ohio 2,229 3.10 992 888
47 Vermont 2,133 3.07 1,151 640
48 New Hampshire 1,997 2.99 885 747
49 Maine 1,960 3.12 858 745

 

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.