The cost of a vehicle can vary significantly depending on where it is purchased. Location matters when looking for the best deal on a new car purchase. Without a doubt, buying a car is one of the most significant financial decisions one can make; frequently, it ranks just behind the price of a home or college tuition.
If you’re currently going for a new vehicle, sticker shock has undoubtedly affected you. That’s surprising because the average cost of a new car has reached an all-time high of $47,000, according to Kelly Blue Book.
Because of this, considering geography when purchasing a car is now more critical than ever. Certain states can help you save significant money on this major purchase because they have better deals, lower taxes, and more favourable market conditions.
Research the states with the lowest car prices to manage your finances and get a better deal on your next purchase.
Here we will div in cheapest state to buy a car in 2023
Why Buy a Car in a State with Low Taxes and Fees?
Buying a car in a state with low taxes and fees has significant financial benefits and cost savings. States with lower sales taxes, car registration fees, and other associated costs can significantly reduce the total cost of an automobile. For example, states without sales tax, such as
- California: $55
- Oregon: $61
- New York: $74
- Minnesota: $75
- South Dakota: $93
These are desirable to customers on a limited budget. In addition, some states may offer lower registration fees, reducing the total ownership cost. Choosing a form with these advantages is brilliant for people who want to save as much money as possible when buying a car because it lowers initial and ongoing costs.
How to Save Money on Your Car Purchase?
When buying a car, the best way to save money is to shop around, find the model, and make it that best fits your needs and price range. Consider buying a used car because it can be affordable compared to new models and provide excellent value.
When interacting with sellers or dealerships, exercise patience, be open to negotiating, and don’t hesitate to back out of a deal if it doesn’t fit your budget. Investigate your financing options as well.
For example, getting a bank or credit union to pre-approve a loan with a low-interest rate can save you money over time. Lastly, consider the total cost of ownership over time, insurance, upkeep, and fuel economy to make an educated choice that aligns with your financial goals.
The Top 10 Cheapest States to Buy a Car
Because it doesn’t have a state sales tax, New Hampshire is among the best states for cheap car purchases. This implies that you can save thousands of dollars on a car, new or old. Cost-conscious consumers will find a wide range of options in a competitive car market, which is perfect for them.
Because it does not impose a state sales tax, Oregon is an additional cost-effective state for automobile purchasers. This can save you a lot of money when buying an automobile. The state is a terrific option for those wishing to purchase a car without going over budget because it also boasts a booming used car market with plenty of options at competitive prices.
Due to the state’s 6% sales tax, purchasing a car is comparatively more expensive in this state; however, due to the large number of retirees and the diversity of car dealerships, prices are frequently competitive, especially for used vehicles. Finding a good deal can be helped by careful research and negotiation, as prices can vary.
With a state sales tax rate of 4.75%, North Carolina has a lower state sales tax and competitive car prices. It is renowned for having reasonably priced used cars, and deals are to be found there, particularly in the Raleigh-Durham and Charlotte regions. You can save even more money if you compare prices and take into account private sellers.
With a state sales tax rate of 5.75%, buying a car in Ohio is reasonably priced. The expansive and varied automobile market in the state offers buyers various choices. New and used car prices can be fair, and purchasing during year-end clearance sales or promotions can result in substantial savings.
Wisconsin is considered a reasonably priced state for automobile purchases, with a state sales tax rate of 5%. Plenty of good deals can be found in the competitive used car market. You may locate options that fit your budget by looking into opportunities in places like Madison and Milwaukee.
Due to its 4.225% state sales tax, Missouri is desirable for auto buyers. Car prices are competitive, and you can find a wide selection, particularly in cities like Kansas City and St. Louis. A good deal can be achieved by comparing shopping and haggling with dealers.
Alaska may have a distinct auto market because of its remote location and challenging terrain. Despite the lack of a state sales tax, transportation expenses and the need for specific vehicles in inclement weather can drive up prices. In Alaska, purchasing a car might necessitate further study and thoughtful deliberation.
Hawaii is an island state with a high demand for automobiles, but, like Alaska, it does not have a state sales tax. Prices for both new and used cars may increase as a result. To save money, consider purchasing from private sellers and be open to smaller, more economical vehicles.
The state’s low population density and 4% state sales tax rate may help to drive down auto prices. Though the used car market may be more constrained than in larger states, shopping in places like Cheyenne and Casper may still result in better deals.
Montana is a desirable option for car buyers because it does not impose a state sales tax. The used car market in the state is growing, and especially in major cities like Billings and Missoula, you can frequently find reasonably priced cars.
Tips for Buying a Car in the Cheapest State
Even though buying a car can be expensive, there are ways to save costs, such as choosing to purchase in a state where registration and sales taxes are less. When buying a car in the most affordable state, consider the following advice:
Investigate and Compare
To determine market rates, compare prices offered by different vendors.
Time Is Everything
Consider purchasing during clearance sales or at the end of the month.
To find affordable prices, investigate several states’ cities and areas.
Ensure the car is inspected, and don’t ignore private sellers.
Know the car’s fair market value and be prepared to negotiate a price.
Use a vehicle history report for used cars to determine repairs and accidents.
Examine Various Models
Vehicles that are more fuel-efficient and smaller can be more affordable.
Check for Incentives
Keep an eye out for any manufacturer or dealer rebates.
Especially for used cars, have the vehicle inspected by a reliable mechanic.
Budget for Additional Costs
Include insurance, taxes, registration, and upkeep expenses in your spending plan.
Ship Your Car With NexGen Auto Transport
If you purchase a vehicle online, at a car auction or from a dealership and want to ship to another state, NexGen auto transport makes it easy. NexGen Auto Transport offers door-to-door car shipping services. Now, get a free quote from using Nexgen, the car shipping cost calculator.