Car ownership is a significant financial burden in Mississippi, according to a recent analysis by the Journal of Consumer Research. The study examined average insurance, repair, and gas expenses nationwide, revealing that Mississippi’s combined costs of $3,465 rank fourth-highest in the country. When adjusted for the state’s median income, vehicle ownership is the most financially burdensome for residents nationwide.
Car expenses consume about 6.4% of a person’s budget, meaning more than $1 out of every $16 earned goes toward vehicle costs. These estimates do not include loan or lease payments.
Breakdown of Mississippi Vehicle Costs:
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Insurance: $1,232 annually, contributing to over one in five drivers being uninsured.
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Repairs: $394 annually, reflecting the potential for unexpected major expenses.
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Gas: $1,838 annually, the second-highest in the nation.
High debt-to-income ratios and credit card usage further strain Mississippi drivers financially. According to Experian, the average new car costs $47,962, while used vehicles average $25,180. The median auto loan debt in Mississippi is $20,816, per WalletHub.
Despite these costs, the automotive industry is a key part of the state economy. The Mississippi Development Authority (MDA) reports that 200 auto-related manufacturers employ 15,000 people and produce roughly half a million vehicles annually. The state also hosts multiple tire and vehicle companies, particularly in the Jackson metro area.
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