Find a Job You Really Want In
New car prices have surged in recent years, and many financial experts caution that prolonged loan terms and unfavorable financial conditions have left consumers burdened by their car payments. As of 2026, owning a vehicle remains essential for many Americans, whether for commuting to work or meeting daily life obligations.
To better understand responsible car ownership in the current economic landscape, we analyzed average incomes and standard payment structures. Our findings reveal the most suitable new cars that the average salary can afford in each state.
Below, you will find a list highlighting more luxurious vehicles available to higher earners, as well as more basic models that fit the budget in states with lower average incomes.
10 Most Expensive Cars by State
- Hawaii – 2026 Tesla Model S
- California – 2026 Volvo S90 T8 Recharge
- Massachusetts – 2026 Audi Q5
- Colorado – 2026 Mercedes-Benz C-Class
- Washington – 2026 Buick Enclave
- Oregon – 2026 Lexus NX
- New York – 2026 Mercedes-Benz GLA-Class
- New Jersey – 2026 BMW 2-Series Gran Coupe
- Maryland – 2026 Toyota Sienna
- Utah – 2026 Mazda CX-9
As anticipated, higher salaries support more expensive vehicles. However, residents in high-cost areas must be cautious to avoid financial strain while choosing their next car.
10 Cheapest Cars by State
- Arkansas – 2026 Chevrolet Spark LS
- West Virginia – 2026 Nissan Versa
- Mississippi – 2026 Hyundai Accent
- Oklahoma – 2026 Mitsubishi Mirage ES
- Indiana – 2026 Kia Rio Sedan
- Ohio – 2026 Honda Fit
- Kentucky – 2026 Honda Fit
- Iowa – 2026 Nissan Versa
- Alabama – 2026 Nissan Versa
- Kansas – 2026 Kia Soul
Read on to learn about our methodology and how each vehicle corresponds to its pricing.
How We Determined This
We began by analyzing average salaries in each state based on the latest data from the US Census Bureau. This figure was divided by 12 to calculate the monthly income.
Next, we used a 65-month loan term (the most common) and a 4.67% interest rate (the current average) to establish the maximum monthly payment that the average salary could sustain without exceeding 10% of their income.
Financial advisors typically recommend that debt payments should not exceed 36% of total income, and specifically, car-related expenses (including payments, gas, maintenance, taxes, and other costs) should remain under 20% of one’s income. Thus, we conservatively allocated a maximum of 10% of monthly income to accommodate miscellaneous costs.
Finally, we consulted Kelly Blue Book to identify the “nicest” new car that could fit within this budget. We aimed for the highest possible model within budget constraints and opted for lower-priced options where necessary, particularly in states with fewer choices.
Below, you’ll find a comprehensive overview of our findings:
The Nicest New Car the Average Salary Can Buy – And Its Cash Value
| State | Max Affordable New Car Cost | New Car |
|---|---|---|
| Hawaii | $70,175 | 2026 Tesla Model S |
| California | $61,013 | 2026 Volvo S90 T8 Recharge |
| Massachusetts | $44,482 | 2026 Audi Q5 |
| Colorado | $42,136 | 2026 Mercedes-Benz C-Class |
| Washington | $41,782 | 2026 Buick Enclave |
| Oregon | $38,196 | 2026 Lexus NX |
| New York | $37,754 | 2026 Mercedes-Benz GLA-Class |
| New Jersey | $37,156 | 2026 BMW 2-Series Gran Coupe |
| Maryland | $35,607 | 2026 Toyota Sienna |
| Utah | $35,298 | 2026 Mazda CX-9 |
| Nevada | $34,191 | 2026 Hyundai Palisade |
| Virginia | $32,753 | 2026 Volkswagen Atlas |
| Alaska | $31,182 | 2026 Chevrolet Traverse |
| New Hampshire | $30,385 | 2026 Kia Sorento |
| Connecticut | $29,810 | 2026 Chevrolet Blazer |
| Rhode Island | $29,433 | 2026 Chrysler Voyager |
| Arizona | $28,703 | 2026 Chrysler Voyager |
| Montana | $28,659 | 2026 Hyundai Santa Fe |
| Delaware | $28,061 | 2026 Ford Bronco Sport |
| Idaho | $27,928 | 2026 Jeep Cherokee |
| Florida | $27,353 | 2026 Toyota RAV4 |
| Minnesota | $26,999 | 2026 Nissan Rogue |
| Wyoming | $25,494 | 2026 Jeep Compass |
| Vermont | $25,339 | 2026 Mazda Mazda6 |
| Texas | $24,100 | 2026 Subaru Legacy |
| North Dakota | $23,790 | 2026 Subaru Legacy |
| Illinois | $23,436 | 2026 Subaru Crosstrek |
| Georgia | $23,281 | 2026 Chevrolet Malibu |
| Maine | $22,484 | 2026 Honda HR-V |
| North Carolina | $22,462 | 2026 Honda HR-V |
| Pennsylvania | $22,042 | 2026 Honda Civic |
| Tennessee | $21,820 | 2026 Toyota Corolla Hatchback |
| Wisconsin | $21,466 | 2026 Hyundai Kona |
| South Carolina | $21,311 | 2026 Mazda3 |
| South Dakota | $20,935 | 2026 Toyota Corolla |
| New Mexico | $20,537 | 2026 Hyundai Elantra |
| Louisiana | $19,939 | 2026 Volkswagen Jetta |
| Nebraska | $19,607 | 2026 Subaru Impreza |
| Michigan | $19,319 | 2026 Hyundai Veloster |
| Missouri | $18,877 | 2026 Kia Forte |
| Kansas | $18,811 | 2026 Kia Soul |
| Alabama | $17,615 | 2026 Nissan Versa |
| Iowa | $17,527 | 2026 Nissan Versa |
| Kentucky | $17,461 | 2026 Honda Fit |
| Ohio | $17,328 | 2026 Honda Fit |
| Indiana | $17,107 | 2026 Kia Rio Sedan |
| Oklahoma | $16,819 | 2026 Mitsubishi Mirage ES |
| Mississippi | $16,243 | 2026 Hyundai Accent |
| West Virginia | $16,155 | 2026 Nissan Versa |
| Arkansas | $15,978 | 2026 Chevrolet Spark LS |
In conclusion, managing personal finances effectively is essential when considering a vehicle purchase. Individuals with significant student loans or other debts should prioritize lower monthly payments. Always assess your current financial situation and long-term goals before making a decision.
Author
Kathy is the head of content at Zippia with a knack for engaging audiences. Prior to joining Zippia, Kathy worked at Gateway Blend growing audiences across diverse brands. She graduated from Troy University with a degree in Social Science Education.
