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15 States Where People Are Spending the Most on Used Versus New Cars

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Editor’s Note: This story originally appeared on CoPilot.

One of the most significant economic stories of recent months has been the rapid growth in inflation.

Recent Consumer Price Index data from the U.S. Bureau of Labor Statistics revealed that consumer prices increased by 7.5% from January 2021 to January 2022. These figures continued a trend of historically unusual month-over-month and year-over-year price increases dating back to the spring of 2021.

Many economists attribute the current period of inflation to several factors related to the pandemic. One is robust government stimulus: Through a series of relief efforts, the federal government has pumped money into the economy over the last two years to support businesses and households through interruptions from COVID-19.

The relative strength of the economy has given households more money to spend, and this has helped boost consumer demand. In particular, consumers are spending more on physical products than on services. However, ongoing challenges with the global supply chain have made it difficult to manufacture and ship products amid this increased demand. With supply unable to keep up with demand, many categories are seeing prices rise.

One of the categories in which these dynamics have been felt most strongly is the market for new and used cars. Demand for vehicles has shifted sharply during the pandemic, dropping early in 2020 but recovering to near pre-pandemic levels since.

The data used in this analysis is from the U.S. Bureau of Economic Analysis 2020 Personal Consumption Expenditures. To identify the states spending the most on used compared with new cars, researchers at CoPilot calculated the percentage of all vehicle sales (in dollars) accounted for by used vehicle purchases. In the event of a tie, the state with the greater amount of used car spending per capita was ranked higher.

Here are the states where people are spending the most on used versus new vehicles.

15. Washington

Lake Union in Seattle, Washington
oksana perkins / Shutterstock.com
  • Used as a share of total vehicle purchase value: 41.42%
  • Used vehicle spending per capita: $501
  • Total used vehicle spending: $3,856,200,000
  • Total new vehicle spending: $5,454,500,000

14. New Mexico

New Mexico road amid desert, mountains
Earl D. Walker / Shutterstock.com
  • Used as a share of total vehicle purchase value: 41.44%
  • Used vehicle spending per capita: $568
  • Total used vehicle spending: $1,195,700,000
  • Total new vehicle spending: $1,690,000,000

13. Tennessee

Nashville Tennessee traffic
Michael Gordon / Shutterstock.com
  • Used as a share of total vehicle purchase value: 41.51%
  • Used vehicle spending per capita: $590
  • Total used vehicle spending: $4,066,600,000
  • Total new vehicle spending: $5,729,800,000

12. Nebraska

Wind turbines in Nebraska
Sovereign Images / Shutterstock.com
  • Used as a share of total vehicle purchase value: 41.78%
  • Used vehicle spending per capita: $847
  • Total used vehicle spending: $1,641,800,000
  • Total new vehicle spending: $2,287,900,000

11. Montana

Livingston, Montana
Nick Fox / Shutterstock.com
  • Used as a share of total vehicle purchase value: 41.84%
  • Used vehicle spending per capita: $803
  • Total used vehicle spending: $867,800,000
  • Total new vehicle spending: $1,206,500,000

10. Utah

cars in Utah
Bob Pool / Shutterstock.com
  • Used as a share of total vehicle purchase value: 43.29%
  • Used vehicle spending per capita: $735
  • Total used vehicle spending: $2,389,300,000
  • Total new vehicle spending: $3,130,200,000

9. Wisconsin

Madison, Wisconsin
Ian M Johnson / Shutterstock.com
  • Used as a share of total vehicle purchase value: 43.33%
  • Used vehicle spending per capita: $699
  • Total used vehicle spending: $4,075,000,000
  • Total new vehicle spending: $5,330,300,000

8. Indiana

Indianapolis, Indiana
Alexey Stiop / Shutterstock.com
  • Used as a share of total vehicle purchase value: 44.34%
  • Used vehicle spending per capita: $662
  • Total used vehicle spending: $4,470,000,000
  • Total new vehicle spending: $5,610,200,000

7. Kansas

Overland Park Kansas
Jacob Boomsma / Shutterstock.com
  • Used as a share of total vehicle purchase value: 44.61%
  • Used vehicle spending per capita: $687
  • Total used vehicle spending: $2,002,400,000
  • Total new vehicle spending: $2,486,500,000

6. Minnesota

Rochester, Minnesota
IMG_191 / Shutterstock.com
  • Used as a share of total vehicle purchase value: 44.72%
  • Used vehicle spending per capita: $754
  • Total used vehicle spending: $4,267,600,000
  • Total new vehicle spending: $5,274,300,000

5. Iowa

Des Moines, Iowa
f11photo / Shutterstock.com
  • Used as a share of total vehicle purchase value: 45.83%
  • Used vehicle spending per capita: $892
  • Total used vehicle spending: $2,821,200,000
  • Total new vehicle spending: $3,334,700,000

4. Kentucky

Lexington Kentucky
James Kirkikis / Shutterstock.com
  • Used as a share of total vehicle purchase value: 45.96%
  • Used vehicle spending per capita: $626
  • Total used vehicle spending: $2,800,700,000
  • Total new vehicle spending: $3,293,500,000

3. Rhode Island

Victor Maschek / Shutterstock.com
  • Used as a share of total vehicle purchase value: 46.69%
  • Used vehicle spending per capita: $575
  • Total used vehicle spending: $607,600,000
  • Total new vehicle spending: $693,700,000

2. North Dakota

Fargo, North Dakota
Jacob Boomsma / Shutterstock.com
  • Used as a share of total vehicle purchase value: 47.80%
  • Used vehicle spending per capita: $843
  • Total used vehicle spending: $645,500,000
  • Total new vehicle spending: $705,000,000

1. South Dakota

Sioux Falls, South Dakota
Jacob Boomsma / Shutterstock.com
  • Used as a share of total vehicle purchase value: 48.35%
  • Used vehicle spending per capita: $708
  • Total used vehicle spending: $631,600,000
  • Total new vehicle spending: $674,700,000

Methodology

Man using too much data on his phone, tablet and laptop
Bacho / Shutterstock.com

The data used in this analysis is from the U.S. Bureau of Economic Analysis 2020 Personal Consumption Expenditures.

To identify the states spending the most on used versus new cars, researchers calculated the percentage of all vehicle sales (in dollars) accounted for by used vehicle purchases. In the event of a tie, the state with the greater amount of used car spending per capita was ranked higher.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

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