New National Business Capital report shows the Midwest dominates affordability, while Pacific states rank among the worst

HAUPPAUGE, N.Y., Oct. 15, 2025 /PRNewswire/ — Buying and operating a car in 2025 is cheapest in the Midwest and Northeast, while drivers in the West are getting hit hardest with higher prices across the board, according to National Business Capital’s second annual report on “The Best States To Buy and Operate a Car.”

The study, released by the business lending platform, analyzed the full cost of buying and owning a typical vehicle – from sales tax and insurance to fuel, fees, and road quality. The rankings reveal a clear regional divide: Ohio takes the No. 1 spot, followed by Indiana (2nd) and Vermont (3rd). At the other end, Arizona (50th), Hawaii (47th), and California (45th) land at the bottom thanks to soaring gas prices and some of the nation’s highest used car costs.

The data shows drivers out West are paying a steep premium: Pacific states average $4.24 a gallon for gas – nearly 50% more than the South – and used cars in the Mountain West are listed at more than $25,000 on average, compared to under $15,000 in the Northeast. Only one state east of the Mississippi, Maryland, fell into the bottom 10.

Meanwhile, the South continues to be a mixed bag. Low fuel costs provide relief at the pump, but many states layer on hidden expenses like personal property taxes and dealer documentation fees. Kentucky (7th) is the South’s lone Top 10 finisher, while most of its neighbors sit in the middle of the pack.

The full study is available HERE:

Key Findings

• Midwest dominates: With an average score of 59.4 out of 100, the Midwest is the most affordable region overall, led by Ohio (1st) and Indiana (2nd).
• Northeast has cheapest cars: Used car listings average just $14,904 in the Northeast, roughly 10% cheaper than the Midwest and 70% lower than the Mountain West. Delaware, Vermont, and Massachusetts all land in the Top 10.
• West Coast pain at the pump: Pacific states pay an average of $4.24 per gallon — 47% higher than the South. California tops the list at $4.61 per gallon, contributing to its 45th-place finish.
• South stuck in the middle: Despite low gas prices, hidden costs like property taxes and fees drag down Southern states, with only Kentucky cracking the Top 10 (7th).
• The roughest roads are out West: The Midwest also scored best for smooth roads (88.1% acceptable rating), while Pacific states had the bumpiest at just 73.9%.

“Americans love their cars, but no one loves the cost,” said Joe Camberato, CEO of National Business Capital. “It’s shocking how different those costs are at both ends of Route 66.”

The 10 Cheapest States To Own and Operate a Car in 2025

1.  Ohio Score (out of 100): 77.8
Previous Rank: 2 (+1)

2.  Indiana Score: 76.2
Previous Rank: 6th (+4)

3.  Vermont Score: 72.3
Previous Rank: 1st ( -2)

4.  Delaware Score: 70.7
Previous Rank: 4th (+0)

5.  Wisconsin Score: 65.3
Previous Rank: 7th (+2)

6.  Iowa Score: 64.6
Previous Rank: 11th (+5)

7.  Kentucky Score: 63.2
Previous Rank: 25th (+18)

8. Massachusetts Score: 62.8
Previous Rank: 33rd (+25)

9.  Pennsylvania Score:  62.7
Previous Rank: 5th (-4)

10.North Dakota Score:  62.6
Previous Rank: 23rd (+13)

The 10 Worst States To Own and Operate a Car in 2025

41. Utah (Score: 41.5 out of 50; -6 ranks from 2024):
42. Maryland (Score: 41.4, -21)
43. New Mexico (40.7, -29)
44. Washington (40.4, +2)
45. California (39.2, +4)
45. Colorado (34.0, +2)
47. Hawaii (33.1, -29)
48. Nevada (28.6, +2)
49. Oklahoma (28.2, -23)
50. Arizona (13.9, -7)

Metrics

• Dealer Document Fees (10%)
• Median Used Car Listing Price (30%)
• Average Gas Price (15%
• Sales Tax (12%)
• Fees and Taxes (12%)
• Insurance Costs (15%)
• Road Condition (10%)

About National Business Capital :

National Business Capital a pioneer of non-bank financing, provides non-asset-backed financing solutions ranging from $250K to $15MM. Since 2007, the company has financed billions of dollars while innovating how business leaders access growth capital. The team’s approach to each transaction allows clients to maximize financing options.

SOURCE National Business Capital