Where are the cheapest cars located?

Where are the Cheapest Cars Located?

Discover the Best States to Buy Cheap Cars

Yellow Car on the Road


Buying a car is a significant investment, and for many people, it is the second most valuable asset after their home. However, not all vehicles are created equal, and their price can vary depending on the state where they are purchased.

If you’re looking for an affordable car, you might want to know which state offers the cheapest cars for sale. In this article, we will explore the best states to purchase a car based on low purchase prices, state sales tax exemptions, and other considerations that could help you save money.

Red Muscle Car in a Parking Lot

FAQs: Where are the Cheapest Cars Located?

1. What is the best state overall to purchase a vehicle?

New Hampshire wins the top spot as the best state overall to purchase a vehicle due to low purchase prices and state sales tax exemptions. If you’re looking for a new or used vehicle, New Hampshire does not levy additional fees and taxes on the purchase of a used vehicle, making it the best state for a low-cost car buying experience.

If you live nearby, it’s worth checking out New Hampshire’s dealerships and private sellers to see if you can find a great car deal.

Metallic Blue Sports Car on a Racing Track

2. What other states offer low car prices and tax exemptions?

Other states that offer low car prices and tax exemptions include:

  • Oregon
  • Alaska
  • Montana
  • Delaware
  • New Mexico
  • Mississippi
  • Arizona
  • Oklahoma
  • Colorado

These states have different exemptions and fees, and it’s worth looking into each one specifically to determine which one is right for you. Some of these states, like Delaware, offer no sales tax on the purchase of the vehicle but include other taxes and fees which might make it more expensive than other locations.

3. Are cars cheaper in certain regions of the United States?

Yes, car prices can vary depending on the location in the United States. For example, cars are typically more expensive in Hawaii, and the average price of a new car can be up to $10,000 more expensive than in other states. This is primarily due to high shipping costs and limited inventory for dealerships on the islands.

On the other hand, the Midwest and Southern states usually have lower car prices than those on the east and west coasts.

Yellow and Red Convertibles on a Scenic Route

4. Can I save money by buying a car in a different state?

It’s possible to save money by purchasing a car in a different state, but it’s not always the most practical option. If you live close to the border of a state with lower car prices, you may want to consider shopping in that state. However, you might need to consider out-of-state taxes and registering fees, making it essential to calculate if the savings will still apply after factoring in additional fees.

If a dealership has a car that you’re interested in, you can negotiate with them to have the car delivered to you, saving the hassle of traveling to another state. It’s important to discuss any additional fees or charges with the dealership to avoid surprises when finalizing the purchase.

Classic Vintage Red Car on a city street


No matter which state you decide to buy a car, researching potential fees and considering your budget, financial goals and preferences will help you find the most affordable option out there. The states listed above along with other factors like negotiating on price can help you in finding the best car deal out there.

When buying a car, it’s essential to consider all the potential costs to ensure that it is a sound financial decision for you. By exploring the best states to buy a car, you can save money and find the right car that meets your transportation needs.

Red and White Must-See Tourist Attraction Car Model

Reference Websites:
1. US News and World Report
2. Car and Driver
3. Bankrate

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