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Searching for the cheapest state to buy a car can lead to significant savings, and savvy buyers know this well. In the current market, where car prices are soaring, finding the most affordable state for your next vehicle is not just smart; it’s essential.

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What State is the Cheapest to Buy a Car?

So, where should you begin? The journey to your most cost-effective car purchase starts with understanding the variables—from sales tax to registration fees—that influence the final price. Whether you’re eyeing a sleek sedan or a robust SUV, your path to pocket-friendly car ownership weaves through the tapestry of state-specific deals.

New Hampshire consistently ranks as a top choice, thanks to its absence of sales tax and low registration fees. But don’t overlook Florida, where the competition among dealers drives prices down, especially for used cars. The Sunshine State’s inventory is vast, and the potential savings are enough to brighten anyone’s budget.

the cheapest state to buy a car is out there

Remember, the cheapest state to buy a car is out there, and with the right guidance, you’ll not only discover it but also navigate the purchase process with confidence and ease. Stay tuned as we reveal more insights to power your search for affordability on four wheels.

Get savvy with your next purchase: Buy a Motorcycle Out of State – Insider Tips!

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Cheapest Places to Buy a Car?

Right now, I’m seeing a whole new playing field in car buying. The average transaction price for a new car has skyrocketed to $48,451, a staggering 25% leap since 2019. This surge underlines a crucial strategy for smart shoppers like you – pinpointing the cheapest state to buy a car. With prices not showing any signs of dropping, it’s more important than ever to know where the best deals are hidden.

And remember, once you find that perfect ride, Nationwide Auto Transportation is here to deliver it straight to your doorstep. Did I mention, from almost anywhere in the USA? Now, let’s see where you can find the best car deals this year!

Where to Buy the Cheapest Cars | The Nationwide Auto Transportation Guide

The key to minimizing your car buying costs is strategic planning. It’s essential not to impulsively buy from the most expensive state. Research and plan meticulously to find the cheapest places to buy a car. With the average new car price soaring to $48,451 this year, a savvy approach to car buying is more crucial than ever.

Here at Nationwide Auto Transportation, we understand that, apart from your home and your children’s education, buying a car is one of your lifetime’s most significant expenses. This reality is steering more and more American car shoppers to consider purchasing vehicles from states with more favorable pricing.

The standout states for car buying in 2024 include:

  • Alaska,
  • Montana,
  • Oregon,
  • Delaware,
  • and New Hampshire,
    • known for their absence of statewide sales tax and generally low unexpected fees.
  • Another state worth noting is Iowa, with its affordable insurance rates averaging less than $720 annually​​.

On the flip side, states like Florida, California, and several southern states present challenges due to their low supply of new cars and higher overall costs. In states like Alabama, Arizona, California, and Tennessee, you could encounter additional fees averaging around $2,000, making them less ideal for car purchases​​.

For a look into car buying costs across the U.S., check out this comprehensive guide on CarEdge, which provides detailed insights into the best and worst states to buy a car in 2024.

And if you’re considering buying a car online, don’t miss our article on Nationwide Auto Transportation’s “Top 7 Tips for Buying a Car Online,” designed to help you save while shopping in another state. Our NAT BLOG also offers a wealth of relevant articles to guide you through this process.

Maximize your earnings by exploring our ultimate guide on how to sell your car for the most profit! Discover insider tips and strategies to ensure you get top dollar for your vehicle.

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What are the Best States to Buy a Car in?

The landscape of car buying in the USA has shifted considerably. With the rise of online marketplaces, the hunt for affordable cars has extended beyond local dealerships to encompass offerings from across the nation and even internationally. This broadened horizon is particularly beneficial for those seeking the cheapest state to buy a car.

Noteworthy are states like Alaska, Montana, Oregon, Delaware, and New Hampshire. Their appeal? No statewide sales tax and generally lower fees, making them prime spots for cost-conscious car shoppers.

Here’s a quick glance at these states:

StateNo Statewide Sales TaxNotable Features
AlaskaYesLow unexpected fees
MontanaYesLow overall costs
OregonYesLow doc fees
New HampshireYesMinimal registration fees

These states are gaining traction as the best choices for buying a car in 2024, offering significant savings on what is one of life’s major purchases.


What is the Car Friendliest State?

In the search for the most car-friendly state, let’s shift gears and head over to New Hampshire. Here, the road to cost savings is clear, with no sales tax and some of the nation’s lowest registration fees. This makes New Hampshire not just a picturesque destination but also the cheapest state to buy a car.

The lowest prices in the US to buy a car is new hampshire

Cruising down to the Sunshine State, Florida’s competitive car market, teeming with used car dealerships, fuels a fierce contest that drives prices down, making it another top spot for car shoppers.

As for timing your purchase in Florida, the best deals often revolve around end-of-year sales, but with such a vibrant market, bargains are a year-round phenomenon. When it’s time to turn the key on a test drive for that dream car, the internet is your highway. A quick search for the model you’re eyeing, followed by ‘for sale near me’, will map out your route to a local dealership ready for your visit.

What State Is The Cheapest To Buy A Car?

Click the following to see links for The Department of Motor Vehicles in 50 states.

MOST CAR friendly states to get a car

What is the Cheapest State to Buy a Used Car?

New Hampshire for cheap cars

Even though car prices are all heading skywards, (used car prices have soared by 35% since 2021) you could still save some money by finding a good deal on a used car. 

With this in mind, you may not live in the cheapest place to buy a car in the world, but there are certain states that are less expensive than others. It could save you to look for an out of state deal, but remember to budget for any added registration fees and shipping costs. To know what you will be paying for car shipping before you have even booked, use this free car shipping calculator

When you consider the average fees associated with buying a car these are the 5 cheapest states to buy a car.

5 States Where Cars Are Cheaper

best states for registration fees

Residents from California can check their car registration fees at the DMV website. These numbers reflect the base registration fees and do not account for additional charges or local fees that may apply.

What 10 States has the Highest Car Registration Fees

Based on the most recent data available, here are the states listed with the highest car registration fees:

  1. Wisconsin: Average registration fee is $85​​.
  2. Vermont: Average registration fee is $76 for 1 year and $140 for 2 years​​.
  3. Washington D.C.: Fees range from $72 to $115 based on vehicle weight​​.
  4. Washington: Fees range from $68.25 to $115.25 based on vehicle weight​​.
  5. California: Average registration fee is $64, with potential additional fees​​.
  6. Massachusetts: Average registration fee is $60 for 2 years​​.
  7. Texas: Average registration fee is $51.75, with possible local fees​​.
  8. West Virginia: Average registration fee is $51.50​​.
  9. North Dakota: Fees range from $49 to $274 based on vehicle weight and age​​.
  10. Oklahoma: Average registration fee is $96 for new registrations, decreasing over time​​.

Please note that fees can vary greatly depending on the vehicle and may include other costs not listed here. It is important to check with the relevant state’s Department of Motor Vehicles for the most current information.

States with highest vehicle registration costs

What Are the Benefits of Buying a Car From Another State?

There are a number of reasons to look for the cheapest state to buy a car, and not just go to your local dealer. 

Some of the best states to buy a car will offer a same, or similar, vehicle type and model at a much better pricing structure than your local used car dealer might be able to offer you.

As you have seen from the information you have read so far, there are certainly some states that offer more advantages when you buy a vehicle from there. Take your time when you do your research… you have 50 states to choose from. 

By including states other than the one where you live, in your car shopping possibilities, you have a much larger pool of vehicles to choose from, and this increases your chances of big savings. This also applies to having your car repaired, or if you are looking for the Cheapest State to pimp your ride a bit.

Boat owners can follow the same principles, and Nationwide Auto Transportation can ship your car, boat or even ATV or motorbike to your chosen car transforming artist.

 best states to buy a car

Reasons for Buying a Car Out of State

Exploring the car market outside your state could steer you towards significant savings and a model that fits your wish list perfectly. Here’s why broadening your horizon might be the smart move in 2024:

  • Diverse Inventories: Local dealerships may have limited selections, but a virtual search can land you the exact make and model you’re after, potentially just a drive away.
  • Geographical Incentives: Some states offer enticing deals to clear out certain models based on regional demand. For instance, you might snag a convertible for less in the north or a sturdy SUV at a discount in the south.
  • Promotional Perks: Keep an eye out for state-specific promotions and incentives that could slash costs, especially on new launches or overstocked items.
  • Tax Advantages: If gifting a car, consider the tax implications—some states have more favorable conditions that could save you money on a gifted vehicle.

As you hunt for the best deal, remember that the right car at the right price might just be a state away. Stay tuned for tips on making the most out of out-of-state car purchases.

Nationwide car types page - Cheapest State to Buy a Car

So you know that you want to buy a car, but have you really given thought to what kind of car you want? Check out our ultimate car buying guide to learn which car types are best suited to your needs and lifestyle.

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Cheapest state to buy a vehicle

What are Police Auto Auctions?

Auctions and salvage auctions can be a great idea whether you’re looking for a used car on a budget or the best deal on a sports car.

Many car buyers wrongly assume that these cars are all damaged beyond repair, or have some sort of crime stigma attached to them, but this does not always ring true. You could possibly get a really good sedan, or SUV, by visiting a police auction site.   

Many vehicles sold on auctions across America every week are in pristine or good & driveable shape.

Why are Cars Auctioned?

Before getting to the reason why cars end up under the auctioneer’s hammer, let us glance at what type of auctions there are:

  • Closed or private auctions
  • Public auction
  • Government auctions
  • Online auctions

Online auctions are the norm today, and many auction houses, institutions and dealers are hosting these, and they are usually open to anyone who registers, even from other states. 

Reasons Why Cars are Sold on Auction

There are diverse reasons why cars end up being sold at auction and here are some of them:

  • It happens that a vehicle may stand on the dealer floor for a longer than required. To make space, these are often sold on an auction. Nationwide Auto Transportation are experts at Auction to Dealer shipping.
  • Repossessed cars are sold at auction to recoup the costs of default vehicle payments.
  • Private owners sell their vehicles at auction to try and get a better deal.
  • Insurance companies sell cars that have suffered accident or weather damage to recover costs after paying out insurance claims to the owners. Damage can include dents, scratches, electrical failure or issues with regards to incorrect winterizing of cars. Learn how to get your car ready for winter and save yourself a boatload of money.

Can you Buy a Bargain at an Auction?

Here is something that many of you don’t know! A good percentage of vehicles sold at auctions are actually in fairly good condition. Cars that have been repossessed, stolen, confiscated from criminals, or decommissioned by rental agencies or other large fleet companies, are often sold at an auction. If you have a good knowledge of cars, or take an expert with you for advice, you could end up with a bargain deal. It is sound advice to take your time, and keep account of any/all sales costs involved, just in case you find a car that suits you.

best states to buy a car

Whether you purchase online, or at a physical site, Nationwide Auto Transportation is your go to company for auction car shipping that is professional and affordable. Get hold of Nationwide for a free quote and valuable advice regarding how to ship your car from another state.

Although it can be a bit complicated when you buy a car from out of state, it is not unmanageable. Once you have a better understanding of the different requirements by the various states, you will feel more at ease, and in the next section we look at what to know when you consider buying a car from another state.

What should you know before buying a car out of state?

We have established that buying a car from another state has numerous advantages, like getting a good deal on a Ford 150 in Maine, when you stay in Alabama. It can however turn sour if you do not do your due diligence before signing anything. It is important to consider:

  • Insurance – speak to your broker for the best insurance advice
  • Emissions – Make sure that the car you are buying will pass the emission laws in your home state. California has the strictest laws, so if a car is Cali-friendly, it will more than likely be acceptable in your state. If you are shipping a car to The Golden State, it is prudent to check first.
  • Registration – You cannot drive an unregistered vehicle in the US, so if you are planning on driving your purchase home, make sure you have the correct documentation. A dealer will assist with the right documentation, and if you are looking to buy from a private seller, it is better to check what you need with your local DMV. The car’s VIN number is used to confirm that it is not stolen, or that it has been tampered with.
  • Sales Tax – Alaska, Delaware, Montana and New Hampshire do not require sales tax when you register your vehicle there. 
  • How do you get your car home – The first thing you need to get would be a temporary registration in order to drive the car back home. A better choice would be to employ the services of a reputable car shipping company. Many dealers form close relationships with car shipping companies like Nationwide Auto Transportation, which just means you end up a winner at both ends of the deal.

states where cars are cheaper

And the Cheapest State to Buy a Car is…

As we speed into 2024, New Hampshire still leads the pack as the most affordable state to buy a car, thanks to its ultra-low registration fees and the absence of sales tax. Meanwhile, Florida cruises into a commendable runner-up spot, boasting a varied inventory with car prices averaging 10% less than the national average. However, it’s worth noting that Florida ranks higher for vehicle registration and title fees, which are some of the steepest in the nation.

 best states to buy a car

Online Car Buying Trends

Growth and Preferences

The online car buying market is on a meteoric rise, illustrating a significant shift in consumer preferences. In 2022, the market’s value soared to an impressive $294.2 billion. This trend isn’t just a short sprint; it’s more of a marathon, with projections hitting a staggering $563.8 billion by 2028. This rapid growth underscores a major transformation in how we buy cars, moving away from traditional dealership visits to a more digital, convenient experience.

Consumer Behavior

Reflecting this digital shift, about 38% of car shoppers are now gearing up to complete their entire car purchasing process online. This substantial portion of the market favors the convenience and breadth of choice that online platforms offer. This preference highlights a broader trend in retail, where convenience, variety, and accessibility are becoming increasingly paramount in consumer decision-making. As we steer into 2024, this trend is only expected to accelerate, reshaping the car buying landscape substantially.

Ship Your Car From the Best States to Buy a Car

Car Shipping Costs | NAT Quote

As you cap off your car-buying journey with a great deal, let Nationwide Auto Transportation make the final stretch smooth and stress-free. No matter the distance—from the farthest state to just across the border—we ensure your new car arrives safely at your doorstep. Need specialized transport for a custom vehicle? We’ve handled the iconic Batmobile with care; your car receives the same meticulous service.

For a seamless experience tailored to your vehicle’s unique needs, consult with our experts about the most suitable shipping method. With options like open car transport, door-to-door delivery, and enclosed auto transport, your car’s safety and your peace of mind are our top priorities.

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Explore our extensive routes for transport across the country and beyond. With Nationwide Auto Transportation, your journey to the best car deals is just a ride away.

FAQ Section | Car Buying Cost Guide Across States

What state is the cheapest to buy a car? For those hunting for the most wallet-friendly car deals, the accolade often goes to New Hampshire. With no sales tax and low registration fees, it stands out as the cheapest state to purchase a car.

What city is the cheapest to buy a car? While states set the stage for affordability, cities can vary. Generally, smaller cities away from the coasts offer lower prices, with specific deals often found through diligent online research.

Why are cars so cheap in Florida? Florida’s car market thrives with a high volume of dealerships, creating a competitive environment that drives prices down. This supply and demand dynamic makes it one of the states where cars are cheaper.

What is the easiest state to buy a car in? Ease of purchase isn’t just about price; it’s about convenience too. States like Oregon and New Hampshire, with fewer fees and no sales tax, make the process simpler and more straightforward.

More Answers About the Cheapest Places to Buy a Car

Which are the most expensive states to buy a car? On the flip side, states like California and Alabama can be costlier due to high registration fees, taxes, and insurance costs, making them states to avoid buying a car from if you’re budget-conscious.

Where are the cheapest places to buy a car? The cheapest places to buy a car can often be found in states like Oregon, where no sales tax is added, and Alaska, which has lower overall fees.

Which is the best state to buy a used car? For used cars, Arizona is renowned for its dry climate which preserves vehicles better, potentially offering better value for the same price compared to other states.

Online and Overseas

Where to buy the cheapest cars online? The digital realm levels the playing field, and platforms like Carvana and Autotrader can lead you to the cheapest place to buy a car online, regardless of your state.

What are the best states to buy a car for savings? States with no sales tax like Montana, Alaska, Delaware, and Oregon are often the best states to buy a car when considering overall savings.

Are there any states to avoid when buying a car? While it varies per individual circumstances, states with high taxes and fees such as Louisiana and Arkansas might be less favorable for car buyers.

What’s the cheapest place to buy a car in the world? Globally, the cheapest place to buy a car can fluctuate, but countries with lower taxes and fees on vehicles, such as the United Arab Emirates, are often at the top of the list.

Remember, when searching for the cheapest state to buy a used car, always consider additional costs like registration, insurance, and potential transport fees if you’re buying from out of state.

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If you’re in the process of moving cars, consider Nationwide Auto Transportation. We offer safe and reliable car shipping services across the country. Rely on our team to find the best solution for your unique needs.

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