Buying a used car can be a smart and economical decision, but the price of a used car can vary significantly depending on where you buy it. Different states have different taxes, fees, regulations, and market conditions that affect the cost of a used car. Therefore, it is important to know which states offer the best deals and which ones to avoid. In this article, we will list the top 10 cheapest states to buy a used car, based on the data from Autolist, which analyzed over 81 million vehicles across the country. We will also explain the factors that make these states cheaper than others, and provide some tips on how to save money when buying a used car.
10. Oregon
Oregon is one of the cheapest states to buy a used car, with an average price of $14,978, which is $454 below the national average. One of the main reasons for this is that Oregon does not charge any sales tax on vehicles, which can save you hundreds or thousands of dollars compared to other states. However, Oregon does have some fees that you need to pay when buying a used car, such as title and registration fees, which can cost up to $187.
9. New Hampshire
New Hampshire is another cheap state to buy a used car, with an average price of $14,971, which is $461 below the national average. Like Oregon, New Hampshire does not charge any sales tax on vehicles, which can lower the upfront cost of buying a used car. However, New Hampshire does have some other taxes and fees that you need to pay when buying a used car, such as title and registration fees, which can cost up to $275, and an annual municipal fee, which can vary depending on the value and age of your vehicle.
8. Montana
Montana is also a cheap state to buy a used car, with an average price of $14,834, which is $598 below the national average. Montana is another state that does not charge any sales tax on vehicles, which can make a big difference in the final price of buying a used car. However, Montana does have some fees that you need to pay when buying a used car, such as title and registration fees, which can cost up to $217.
7. Alaska
Alaska is a cheap state to buy a used car, with an average price of $14,799, which is $633 below the national average. Alaska does not charge any sales tax on vehicles, which can save you a lot of money when buying a used car. However, Alaska does have some fees that you need to pay when buying a used car, such as title and registration fees, which can cost up to $100.
6. Indiana
Indiana is a cheap state to buy a used car, with an average price of $14,770, which is $662 below the national average. Indiana does charge a sales tax on vehicles, which is 7% of the purchase price, but it also offers a trade-in credit, which can reduce the taxable amount by the value of your trade-in vehicle. However, Indiana does have some fees that you need to pay when buying a used car, such as title and registration fees, which can cost up to $196.
5. Wyoming
Wyoming is a cheap state to buy a used car, with an average price of $14,757, which is $675 below the national average. Wyoming does charge a sales tax on vehicles, which is 4% of the purchase price, but it also has a low cost of living and low gas prices, which can lower the overall cost of owning a used car. However, Wyoming does have some fees that you need to pay when buying a used car, such as title and registration fees, which can cost up to $150.
4. Hawaii
Hawaii is a cheap state to buy a used car, with an average price of $14,735, which is $697 below the national average. Hawaii does charge a sales tax on vehicles, which is 4.5% of the purchase price in Oahu and 4% in other islands, but it also has a high demand and supply of used cars, which can drive down the prices and increase the choices. However, Hawaii does have some fees that you need to pay when buying a used car, such as title and registration fees, which can cost up to $271.
3. South Dakota
South Dakota is a cheap state to buy a used car, with an average price of $14,713, which is $719 below the national average. South Dakota does charge a sales tax on vehicles, which is 4% of the purchase price, but it also has a low population and a large land area, which can reduce the competition and increase the availability of used cars. However, South Dakota does have some fees that you need to pay when buying a used car, such as title and registration fees, which can cost up to $105.
2. Ohio
Ohio is a cheap state to buy a used car, with an average price of $14,697, which is $735 below the national average. Ohio does charge a sales tax on vehicles, which is 5.75% of the purchase price, but it also has a high number and variety of used cars, which can lower the prices and offer more options. However, Ohio does have some fees that you need to pay when buying a used car, such as title and registration fees, which can cost up to $234.
1. Michigan
Michigan is the cheapest state to buy a used car, with an average price of $14,576, which is $856 below the national average. Michigan does charge a sales tax on vehicles, which is 6% of the purchase price, but it also has a low demand and a high supply of used cars, which can drive down the prices and create bargains. However, Michigan does have some fees that you need to pay when buying a used car, such as title and registration fees, which can cost up to $230.
Conclusion
Buying a used car can be a great way to save money and get a good value, but the price of a used car can vary depending on where you buy it. Different states have different taxes, fees, regulations, and market conditions that affect the cost of a used car. By knowing which states are cheaper than others, you can find the best deals and avoid overpaying. However, you should also consider other factors that may influence your decision, such as the condition, history, and warranty of the used car. You should also do your research and compare prices and values before buying a used car.
