Cost of Owning a Car in Memphis
Owning a car in Memphis is easier on the wallet than most metros, but the sticker still hides the real bill. Elevated vehicle-theft and uninsured-motorist rates push Memphis's modeled insurance well above the national baseline despite a very low cost of living. Below, we break down depreciation, insurance, fuel and maintenance for Tennessee, then let you run your own numbers. Local insurance and ownership indexes shown here are modeled estimates, not insurer or lender quotes — replace them with your own quote before deciding.
At a cost index of 85, Memphis is one of the more affordable places to keep a car. Elevated vehicle-theft and uninsured-motorist rates push Memphis's modeled insurance well above the national baseline despite a very low cost of living. Lower fixed costs mean a paid-off, fuel-efficient vehicle can be genuinely cheap to run here, so the bigger swing factor becomes how fast your specific model depreciates.
Key assumptions for this page
Sources: U.S. Census Bureau · U.S. Bureau of Labor Statistics — figures are estimates last reviewed 2026; verify before purchase.
What is source-backed vs modeled?
Published sources help shape the baseline where available. Local insurance and ownership indexes are modeled estimates, not insurer or lender quotes — they combine public demographic and cost signals with conservative assumptions. Replace the defaults with your own quote before deciding.
Run your own numbers
Your numbers
True cost per year
$9,607
Cost per mile
$0.8
Cost per month
$801
Insight — For most owners, depreciation is the largest line — often more than fuel and insurance combined — yet it never shows up on a monthly bill. Insurance is the cost you can change fastest without selling the car.
What if Annual mileage changes?
| Annual mileage | True cost per year |
|---|---|
| 6,000 mi | $8,879 |
| 9,000 mi | $9,243 |
| 12,000 mi · now | $9,607 |
| 15,000 mi | $9,972 |
| 20,000 mi | $10,579 |
Shop your insurance the smart way
Know your benchmark here, then compare real quotes from several carriers — prices for the same driver vary a lot.
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Good to know
Specific, useful answers for this page.
What does it really cost to own a car in Memphis?＋
Beyond the price, the big yearly costs are depreciation, insurance, fuel and maintenance. Elevated vehicle-theft and uninsured-motorist rates push Memphis's modeled insurance well above the national baseline despite a very low cost of living. The breakdown above totals these for Tennessee.
Is it cheaper to own a car in Memphis than the national average?＋
Memphis is at or below the national average on most ownership costs. Run your own mileage above for a precise figure.
Which ownership cost should I focus on cutting in Memphis?＋
Insurance, by a wide margin — at an index of 156, Memphis premiums are the single line you can move most by shopping carriers. Buying a slower-depreciating model and pumping local fuel at 3.00 only when prices dip both help.