The Best State to Buy a Car: A Guide

When beginning the car buying process for a new or used car, finding your desired vehicle for the best possible deal can seem daunting, all while handling additional components such as unintended fees, car insurance, and the payment process.

By purchasing a vehicle in one of the best states to buy a car, prospective buyers can save or lose on costs, including car sales tax, dealership fees, registration fees, insurance, and monthly payments.

What Makes a State Favorable for Car Buying?

The sales tax in each U.S. state plays a major role in driving up or lowering the overall cost of purchasing a new vehicle or the Manufacturer's Suggested Retail Price (MSRP). Supply and demand of vehicles in that state also have a large quantity of influence over average car prices.

Low or No Sales Tax

Some states have low, high, or no sales tax, meaning you could save hundreds or thousands of dollars on your new car. In total, Alaska, Oregon, Montana, and New Hampshire have zero sales tax. In contrast, states including Tennessee, Arkansas, Louisiana, Washington, and Alabama have the highest combined sales tax rates in the U.S.

Great Auto Insurance Options

Auto insurance is required in every U.S. state, making insurance costs a crucial element to look into before purchasing your vehicle in a particular state. Michigan, Florida, and New York have some of the highest auto insurance rates in the country. On average, Maine has the lowest car insurance premiums compared to the national average, followed by North Dakota, Ohio, and Idaho.

What Makes a State Bad for Buying a Car?

Aspects such as high initial costs, car ownership fees, state sales tax, and auto insurance can drive up the cost of purchasing a car in a particular location. Registration fees and documentation fees can vary by state, meaning some areas may have higher fees on average than others.

High Initial Costs

Some states have higher sales prices and sticker prices than the national average, meaning you would pay less for the same car in a different state. California is the most expensive state for upfront vehicle costs due to high state taxes, an increased cost of living, gas prices, and costly fees for maintenance, emission checks, and repairs at the DMV.

Extreme Fees

Unexpected fees can leave car buyers paying a higher price than they had anticipated. Alabama, Arizona, Colorado, Tennessee, and Florida are the worst states for unexpected fees on average, whereas Oregon, Alaska, New Hampshire, and Montana are the least expensive states for unexpected fees.

What Are the Best States To Buy a Car?

Throughout the process of purchasing a car, the best states have the lowest overall prices compared to the national average. Whether you are purchasing a new or used vehicle, choosing the state you buy in can give you the best possible deal for your car purchase.

1. Florida

Florida has more vehicles on the market; initial vehicle costs are 10 percent below the national average, and they have competitive prices for luxury vehicles. Over twenty percent of Florida’s population consists of elderly residents, leading to more cars being resold into the market.

2. Oregon

Oregon is an inexpensive state to purchase a car in because it has some of the lowest unexpected fees. On average, unexpected car fees in Oregon are less than $115 or $150 if they use an integrator.

3. Maine

Maine is known to have the cheapest insurance costs compared to the national average. Car buyers in the area typically pay an annual premium of approximately $696 for their coverage, compared to the U.S. national average of $1,070 for a full-coverage plan.

4. New Hampshire

Many consider New Hampshire the best state to buy a car in overall due to its across-the-board affordability. Buyers pay no sales tax to purchase a vehicle, auto insurance costs are low, the state has low registration fees, and a competitive cost of living to boot.

5. Indiana

Indiana’s initial vehicle costs are 11 percent below the national average, and, combined with low insurance coverage costs, buyers can expect to save a lot of money. The average cost of car insurance in Indiana is $725 per year, making it the second cheapest U.S. state for car insurance costs.

6. Ohio

Ohio provides car buyers with low insurance premiums, low registration fees, and many new and used vehicles on the market. Ohio’s high population of 12 million has led to an increase in the number of vehicles for sale and lower overall vehicle prices.

How To Transport Your New Car to Your Home

Whether you are buying a car in your home state or out-of-state, once you have purchased your new or used vehicle, it is time to transport it to you. Instead of taking your car out onto the road and exposing it to wear and tear and harsh weather conditions, you may want to have your vehicle shipped by hiring a car-hauling service.

Bottom Line

Buying a car can be a difficult process without the right help. By enlisting the help of a vehicle transportation provider, such as RPM Freight, you can save time and protect your peace of mind with reliable shipping services that will get your newly-purchased car delivered right to your door.

To learn more about transporting your new car to you, visit our website today.

The Best States To Buy A Car 2023 | World Population Review
Car Insurance Rates By State For 2023 | Bankrate
Best State To Buy A Car | Car and Driver
Car Buyers Beware, Cheapest And Most Expensive States For Unexpected Fees | Forbes
Best States To Buy A Car | The Balance
New Hampshire Is The Cheapest State To Own A Car — Here’s The rest Of The Top 10 | CNBC
The Best States To Buy A Car In | Supply Chain Game Changer
How Much Is Car Insurance In Indiana (2023 Report) | Money Geek
Best & Cheapest States To Buy A Car | Autolist

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