The Hidden Geography Tax That Makes Cars 10% More Expensive Here

by | Dec 9, 2025

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Here’s something that’ll make you think twice about where you shop for big-ticket items.

Living along the Gulf Coast, we don’t have any public transportation — and I mean basically zero. In inner cities they do, but once you get outside of that, it’s so huge that regular transit options just aren’t practical.

So, cars are more expensive here, because everybody has to have a car. That reality ripples through the local economy because transportation becomes a mandatory, high-cost line item for every household.

Compare that to a place like Dallas, you can probably get a 10% discount on a car purchase there versus what we’re paying down here. That difference is real money — enough that I know a lot of people who go to Texas just to buy a car and bring it back.

That is not unusual around here, and those savings matter when the alternatives simply don’t exist.

Geography Shapes Everything

Part of this is just the reality of space. Once you get outside the inner cities in Texas, it’s so huge — you can take two days to drive from Houston to El Paso. You’ve got three towns along the way: Oklahoma City, Wichita Falls and Midland, and then you’re there.

When geography spreads people out like that, public transport is out the window, and everyone needs wheels, which reinforces the pricing pressure in places built around distance rather than density.

The One Exception

Now, we do have one option…

There’s an Amtrak that goes from here to New Orleans — that’s it, it doesn’t go anywhere else. It stops along the Gulf Coast before it gets to New Orleans, and it’s about a two and a half hour ride.

It only costs about $30, and people love it. And everybody here’s a New Orleans fan when it comes to basketball, football and all that crap, so on game days you’ll see buses hauling groups over there to make a day of it.

But one Amtrak line doesn’t change the car market.

The broader point stands: When you eliminate alternatives, prices go up. Regional factors — things most people never think about — shape everyday costs in ways that aren’t obvious until you live with them.

Something to keep in mind next time you’re making a big purchase. Sometimes it pays to shop a few states over.

Geof Smith
Geof Smith Trading 

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