Costs of Car Ownership in Texas

Costs of Car Ownership in Texas

Everyone knows it’s expensive to have a car. In addition to the original cost of buying the car itself, there’s still maintenance, insurance, and gasoline costs. The real costs of car ownership are a lot higher than the sticker price at the dealership.

The cost of ownership that cars incur is different from state to state. Texas ranks thirty-first. On average, the true cost of owning a car, including the cost of repairs, taxes, gasoline, and insurance is $3,078 per year. This does not even include the depreciation in car value, which accounts for more than 43.9% of expenses according to the American Automobile Association – when you resell a car, you’re going to earn a lot less money than you paid for it.

If you think about how much it costs to maintain your car, the first thing that may come to mind is the cost of refueling. However, there are more expenses than just gasoline costs.

  1. Fuel

The most obvious expense. Average gas prices vary widely among states. The national average is $1268 per year. Fortunately, local gas prices in Texas are cheaper on average by 9% compared to the rest of the country – so the costs will be relatively lower on this front. 

  1. Insurance

Car insurance is a key component of owning a car because it helps cover your expenses if you get into an accident. Insurance rates are highly dependent on many factors like the car you have, the driver and his or her driving habits, the state you live in, and more. Choosing an insurance company carefully, you can save a lot.

On the whole, car insurance in Texas costs $1,222 per year.

  1. Service and Repair

If you’re driving a car, you need to properly maintain it to keep it from breaking down – and of course, repair it in case something goes wrong. Naturally, the older the car, the more attention it requires. The car maintenance cost varies for many different reasons. The main factors that influence the cost include the type of repair, the vehicle’s make and model, and the service provider. In Texas, the annual car maintenance cost is $364. 

  • Service your car on time so that you don’t end up in the middle of nowhere Googling nervously on your phone “car repair near me”. 
  1. Taxes and Fees

License, registration, and car tax costs are impacted by vehicle sales prices and state tax rates. This includes the cost of all government taxes and fees which you have to pay at the initial purchase, plus annual fees. For Texas, the taxes and fees are as follows:

  • New Resident Tax – $90
  • Registration Fee – a flat rate of $50.75
  • License Plate Fee – included in the registration fee cost
  • Title Transfer Fee – varies by Texas counties
  • Sales Tax – 6.25% of value or purchase price
  • Personal Property Tax – only income-producing personal property is subject to personal property tax
  • Emissions/Inspection Fees – varies by Texas counties

On average, Texans pay $980 in fees and taxes per year. 

  1. Hidden Costs

Hidden CostsSome costs are not obvious at first but will come back to bite you if you’re not prepared. For example, if you have a car, you probably have a garage. Clearly, it needs to be maintained to stay in good condition. A garage door breaking down can be another cost that isn’t initially obvious when first buying a car, but can still take a toll on your wallet.

The average cost to install a garage door is about $1,000, or between $734 and $1,461. A new garage door will cost anywhere from $200 to $4,000, with different garage capacities (single car versus multiple cars) and different quality materials accounting for the range in cost.

Garage door replacement with a new installation usually averages around the same price as installing a new one. Homeowners might pay anywhere between $500 and $2,500, depending on a wide variety of factors. Garage door opener repair can cost between $100 and $300, depending on the extent of the problem.

In Texas, the average garage door repair cost is $819 and ranges between $524 and $1,117. If you want to save on costly garage door repairs and replacement, there are warranty plans offered by home warranty companies covering these costly expenses. With the garage door opener coverage, you can expect quick service when your garage door opener fails, and it’ll be working again in no time. A professional contractor will conduct the garage door service. All you need to pay is a service call fee of about $75 for the visit. Specific fees and costs will depend on the company you’re working with.


Many people focus primarily on price and payment when thinking about car ownership, but several additional factors can impact the overall cost of owning a vehicle. 

In conclusion, owning a car in Texas can be a mixed bag when it comes to cost. Although gasoline generally costs less than the national average, insurance and repair costs can be fairly pricey. The main takeaway is that the cost of owning a car will always be more than you expect, and you should be in the know about everything that comes with owning a car – and the cost of it – before signing on the dotted line.