Best State to Buy a Car

Best State to Buy a Car: Factors to Consider


If you are thinking of buying a vehicle, you are likely budgeting for many different things, which include insurance costs, gas and financing. Car prices and overall cost costs by state rely on different factors such as dealer fees, taxes, registration fees and more. Therefore, it is good to identify the best state to buy a car before you get one, because no matter how expert you are at negotiation, prices can still differ crucially by state. The prices also vary due to differences in demand, and competition in each state.  Sadly, many people never consider these factors when buying a vehicle, especially in case they have lived in the same state all their life. In addition, taxes are imposed based on where you live rather than the place you bought the car. Here is everything you need to know. Let us begin!

Best State to Purchase a Used Vehicle: Florida

Used cars in Florida can be almost 10% cheaper than the national average because of the old population that is surrendering their vehicles each year, whether due to impaired eyesight or death or driving abilities. Severely 20.5% of Florida’s population is at least 65 years old. Rather, the way of life of the high-rolling people individuals mean that as persons try to keep up a particular way of life, they sell their used vehicles along the way and trade them for  faster ones, better, bigger, making it an ideal buyers’ market. Florida stands as the overall winner as the best state to purchase a used vehicle as well as the best state to buy a car.

Factors to Consider When Choosing the Best State

Initial Cost

The initial cost of a car should be one of the factors to consider when choosing the best state to buy a vehicle. If you are searching for the state with lowest initial cost, that will be Florida. Florida’s rates are normally 10% less than the national average, so you can really save a lot of money when you buy your car in the Sunshine state.

Low initial costs in Florida are because to a variety of factors. First, Florida population is made of prominent aging people. They start selling off their vehicles because driving is less, giving you more choices to find better deal.

The aging population here is also wealthy, and the wealthier people sell vehicles more often.

In addition, most cars in Florida probably have never had to deal salt. Roads are salted in snowy northern climates to melt the snow. As vehicles drive through the salt, cause damage. While it takes decades for this damage to be notable, it is normally present when the average individual is prepared to sell. Florida vehicles frequently have no salt damage to speak of. 

Unexpected Fees

There are all types of fees to face when buying a car. These fees are different from the initial cost and can even differ from dealership to dealership within the same state. Oregon has the lowest unexpected cost on average. Actually, they will not run you more than $130 total when purchasing a vehicle.

According to Autolist, Alaska and New Hampshire are the second-best state for unexpected fees, the fees do not exceed $360 which is still affordable.

Auto Insurance Cost

Car insurance is a lawful requirement in almost all states, so it is essential to consider the particular cost when buying a vehicle. Not all states are the same when it comes to insurance costs. Actually, Michigan is well known for its high insurance rates that the government is working on plans to lower them.

Maine State has the cheapest insurance policy and that is not because your possibility of hitting a deer is low. For a policy that offers reasonable coverage, you will only have to reimburse an annual premium of around $864.

Ohio and Idaho offer affordable insurance policy too at an annual premium of less than $1000. To put this in view, the national average is around $1318 annually.  Maine is one of the best states to buy a car when you consider the low insurance cost.

Tax-Friendly State

Most people do not see vehicle fess and taxes such a big deal. You purchase a new vehicle and the sales tax, registration fees and title are added automatically to the balance of your car loan. You might get a little upset if you live in a state that imposes a car tax year after year.

New Hampshire is the most tax-friendly state in the United States and the best state to buy a car probably. 

Overall Best State to Purchase a Car

The overall winner is New Hampshire according to Autolist. It is the overall winner after considering all the factors. New Hampshire does not need a sales tax on cars. In addition, registration costs are reasonable low. Given the affordable insurance cost, the cost of living and the number of used vehicles on the market here, it is reasonably easy to find a cheap vehicle you can be happy driving. New Hampshire is the best state to buy a car and indeed to live in.


When you’re buying a car, it is obvious you want a car that will give you the value of your money. You will definitely look for the best state to buy a car and all others factors considered, from registration and sales tax, your best choice for purchasing is in New Hampshire. You could probably save thousands of dollars in a state like New Hampshire versus Alabama, for example.  That said, you could do great purchasing a vehicle in states like Florida, Ohio and Maine as well.

 Eventually, the vehicle you want, and your own budget is going to rule where you purchase it and how much you are ready to spend. As you can see, there are numerous considerations when it comes to purchasing a vehicle out of state. Just ensure that you think about all the costs and that you examine the vehicle properly before signing on the contract.