Sep 20, 2020
While we adhere to strict editorial guidelines, partners on this page may provide us earnings.
Car prices can vary depending on the state, even if everything else about the car is identical.
So, what is the cheapest state to buy a car?
Advertisement
This guide will explain.
What Is the Cheapest State to Buy A Car?
You're probably not going to move across the country to save a few bucks when buying a car, but it sure would be interesting to know if your state makes the list, and why.
These rankings are based on a March 2020 survey by GoBankingRates.
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
- Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
10 Most Expensive States for Used Cars
These are the 10 most expensive states for used cars.
| Rank | State | Key Reasons for Worst Prices |
|---|---|---|
| 10 | Colorado | Cost of ownership is above the national average, with taxes and repair costs being particular highlights. |
| 9 | Arizona | Higher than national average sales and vehicle property taxes. |
| 8 | Alabama | Higher than national average sales tax. Gas and maintenance are also above the national average. |
| 7 | Kansas | Higher than average sales and vehicle property taxes. |
| 6 | Arkansas | Apart from low title and registration fees, the cost of ownership is above the national average. |
| 5 | Nevada | Higher than national average sales tax and insurance premiums. |
| 4 | Mississippi | Higher than national average average vehicle property tax, sales tax, gas and maintenance costs. The title and registration costs are below the national average. |
| 3 | Rhode Island | The cost of gas in Rhode Island is below the national average. Insurance premiums are higher than the national average. |
| 2 | Louisiana | Apart from the cost of gas, ownership costs are above the national average. |
| 1 | California | The cost of living is skyrocketing, so people are holding on to their used cars for longer. It’s the most expensive state for sales tax and gas too. |
10 Best States to Buy Used Cars
These are the 10 best states to buy used cars.
| Rank | State | Key Reasons for Best Prices |
|---|---|---|
| 10 | Montana | No sales tax on purchases. |
| 9 | Alaska | Lower than national average initial fees. |
| 8 | Virgina | Gas prices and insurance premiums lower than national average. Registration and title fees are less than most states too. |
| 7 | Ohio | Low sales tax and low insurance premiums. Ohio has the second-lowest auto insurance costs in the country. |
| 6 | Wisconsin | Lower than national average insurance premiums, maintenance costs and gas prices. Low ownership fees as well. |
| 5 | North Carolina | Lower than national average sales tax and auto insurance premiums. |
| 4 | Missouri | Lower than national average gas prices. Residents pay lower title and registration fees too. |
| 3 | New Hampshire | The average cost of owning a car, including gas and auto insurance is among the lowest in the country. There is also no sales tax on purchases. |
| 2 | Oregon | No sales tax on purchases. |
| 1 | Florida | Used vehicles are almost 10% less in Florida than the national average. Florida is also a buyer’s market and the cars are often in excellent condition owing to the weather. No road salt in Florida! |
Read More: Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Cheapest State to Buy A Car
What city and state is best to get a good deal on a car?
Prices vary between states owing to a variety of factors including car sales taxes, gas taxes, insurance premiums and registration and documentation fees. The difference in the sticker price of the car will also vary based on availability of inventory, which can change from state to state owing to shipping costs and consumer demand.
What City and State Is the Best to Get A Good Deal on A Car?
Please note the following lists do not take every used car dealer, new car dealership and independent seller into account.
The results are a reflection of the average listing price rather than the sale price. The numbers are percentages points that each location compares to the national average.
Best Cities for Used Cars
These are the top 10 best cities to buy a used car.
| Rank | City | State | % Difference from Nat. Avg. |
|---|---|---|---|
| 10 | Springfield | Massachusetts | -3.9% |
| 9 | Detroit | Michigan | -3.9% |
| 8 | Providence | Rhode Island | -4.2% |
| 7 | Sarasota | Florida | -4.6% |
| 6 | Tampa | Florida | -5.2% |
| 5 | Orlando | Florida | -5.4% |
| 4 | Cleveland | Ohio | --5.9% |
| 3 | New York | New York | -6.2% |
| 2 | Stamford | Connecticut | -6.8% |
| 1 | Miami | Florida | -11.1% |
Worst Cities for Used Cars
These are the top 10 worst cities to buy a used car.
| Rank | City | State | % Difference from Natl. Avg. |
|---|---|---|---|
| 10 | Portland | Oregon | +7.9% |
| 9 | Knoxville | Tennessee | +8.0% |
| 8 | Seattle | Washington | +8.0% |
| 7 | Jackson | Mississippi | +8.2% |
| 6 | Shreveport | Louisiana | +8.4% |
| 5 | Bakersfield | California | +8.8% |
| 4 | Albuquerque | New Mexico | +10.1% |
| 3 | Fresno | California | +12.0% |
| 2 | Reno | Nevada | +12.2% |
| 1 | El Passo | Texas | +12.3% |
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- This 20-year-old lotto winner refused $1M in cash and chose $1,000/week for life. Now she’s getting slammed for it. Which option would you pick?
- Warren Buffett used these 8 repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Alex Denholm was a freelance contributor to Moneywise.
Managing Money • Apr 19
When is the best time to buy a laptop?
Retirement • Mar 14
