Mississippians with 5th highest share of car debt: report
JACKSON, Miss. ( WJTV ) – Having a pair of wheels is a status symbol most cherish, but a recent report reveals that Mississippians disproportionally maintain it to their detriment.
In the game of life, many want to win it, or at least seem like they are. To do so, they often make brash economic decisions, like purchasing a car that puts them in more debt than necessary. Lemon Law Experts conducted two analyses using data from The Federal Reserve Bank of New York and the U.S. Census Bureau to determine which state's residents buy more than they can afford. Mississippians have the 5th highest rate of car debt nationally.
Mississippi's median income adjusted for cost of living is $60,388. The average auto debt for Mississippians is $7,385, the tenth highest amount nationally. Whether a Mississippian is paying off a Honda or a Hellcat, it costs the average resident over 12% of their income, the 5th highest rate nationally. Whether the car was a needed purchase, a necessary upgrade or a new way to keep up with the Joneses, all loan balances for automobiles add up to roughly $15.4 billion statewide.
Mississippians spend second most on bills: report
Other fees also contribute to the cost of vehicle ownership. Mississippians have the second-highest vehicle tax rate nationally at 3.46% on average. For those driving a new car worth $26,000, that adds up to car taxes of $915. To help save money in the long term, consider doing the following:
Avoid idling. Idling gets you zero miles per gallon and does use gas. The best way to warm up a vehicle is to drive it. No more than 30 seconds of idling on winter days is needed
Avoid aggressive driving, such as speeding, rapid acceleration and hard braking, which can lower your highway gas mileage by up to 33% and your city mileage by 5%
Avoid high speeds. For every five mph above 60 mph, it is like paying an additional 30 cents per gallon of gasoline
Avoid keeping heavy items in your car; an extra 100 pounds could increase your gas costs by up to 8 cents per gallon
Reduce drag by placing items inside the car or trunk rather than on roof racks
Combine errands. Several short trips can use twice as much fuel as one trip covering the same distance when the engine is warm
To save on driving and car maintenance costs, consider telecommuting, carpooling and public transit. For those looking for a new car, calculate the differences in fuel consumption and purchase costs among different vehicles here .
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