What is the best state to buy a car in

New Hampshire is the overall cheapest state to buy a car. New Hampshire has relatively low unexpected fees for purchasing a car. You can save on upfront costs by the lack of state sales taxes and low registration fees. Insurance premiums are relatively low in the state as well at around $941 per year.

This is fantastic news for New Hampshire residents looking to buy a new vehicle, as well as anybody planning to relocate to the state in the near future. As a result, many people from other states prefer to buy vehicles from another state. When you’ve found a car you’re looking for, you may be asking how to ship a car to another state. But first, which is the cheapest state to buy a car?

When purchasing a car from another state, you may conduct the majority of your research for cheap cars for sale online. It is critical to evaluate all aspects of the car buying process before going to another state.

This post will go over the following points to help you determine if buying a car out of state is good for you. To discover which state is best for buying a car, consider the top states for initial costs, unexpected fees, sales tax, and auto insurance prices.

Pros and cons of buying a car out of state

Before you start looking for a new car, think about the advantages and disadvantages of buying a car out of state. Let’s look into them to see whether it’s the best option for you.

There are various states that provide cheaper choices for buying cars, so don’t restrict yourself to just one or two. You have the entire country to search—don’t limit yourself to your local state, especially if you’re looking to buy a rare model.

Furthermore, car assessments are dependent on a variety of criteria, including the location of the vehicle. It is possible to locate the exact same model in another state at a lesser price than your local dealership. By broadening your search, you’ll be able to compare more costs and maybe save money. Remember to factor in anticipated sales tax, which might vary depending on where you register the vehicle.

Recommended: Remember, you might save even more money by purchasing a car from one of these platforms, which we believe to be the best used car websites right now.

The biggest disadvantage of buying a car out of state is that the process might be more cumbersome. Each state has its own rules for sales tax, registration, and emissions.

You’ll also need to find a way to bring the car back to your home state. You can drive if you live nearby, but you may require a temporary registration. If the car isn’t nearby, you may need to ship it, which adds fees that might eat into any possible savings.

Things to consider when buying a car out of state

Buying a car from out of state is also an option if you can’t locate the model you want locally. Perhaps you got a fantastic price online.

In either case, there are numerous advantages to buying a car out of state, but it may turn into a nightmare if you don’t do your homework before making the purchase. Here are a few things to look into ahead of time.

Sale Tax

Sales tax is normally collected in the state where you register your new vehicle. Oregon, New Hampshire, Montana, Delaware, and Alaska do not charge sales tax, so you might register it there to save on sales tax unless your home state requires you to register it where you reside. Check with your local DMV for specifics on their registration policies.

Registration

If you want to drive the car back to your home state before registering it, you may require a temporary registration. If you buy the car from a dealer, they will usually assist you with the registration papers.

However, if you are purchasing from a private seller, you will most likely need to understand the state’s criteria for temporary registration and apply for it yourself at the DMV.

When registering the vehicle in your home state, keep in mind that you may be required to submit a vehicle identifying number, or VIN, verification form to prove that the vehicle hasn’t been stolen.

Emissions Standards

Because each state has distinct emissions rules, a car that meets one state’s minimal criteria may fail in another. California, for example, established strict emission standards through the California Air Resources Board, and numerous other states have since followed suit.

Check to see if the car you wish to buy is “California certified,” which implies it was built to fulfill California smog laws. This may appear harsh, yet many cars only fulfill federal emission standards in the other 49 states. Pay close attention to this aspect if you’re shipping a car to California or relocating to California.

Transport a Car Home

If you plan to drive the car back to your home state, you must first obtain a temporary registration to allow the car to be driven.

However, if you want to ship it, you may need to conduct some research to find a trustworthy auto transport company at a reasonable price. Many dealers have strong connections with auto transport companies.

Car Insurance

Some car insurance providers may enable you to transfer your existing car’s coverage to your new vehicle if you tell them within a particular deadline.

The best state for initial costs

Florida is a great state to buy a used car. On average, used cars are 10% cheaper in Florida than nationwide. Around 20.5% of Florida’s population is 65 or older.

With Florida’s aging population, many people turn in their cars every year due to impaired eyesight or other age-related problems.

This results in a high supply of used vehicles on the Florida market, keeping prices low. Moreover, wealthier Florida residents tend to sell their vehicles more often to buy the latest models.

Additionally, this opens up a market for luxury vehicles with prices lower than ever before. Plus, most Florida vehicles have not been worn down by snow or salt, so they’re likely in excellent shape.

Meanwhile, California has the highest initial vehicle cost. California is a state with a very high cost of living, and used car sales are much smaller than they are in the rest of the country. As a result, their prices are much higher and their competition is fierce.

Best states for unexpected fees

The state of Oregon is a great place to buy a vehicle if you’re worried about unexpected fees. The Balance reports that initial car-buying fees are typically under $150, which is a fraction of what is charged in other states. Other fee-friendly states include Alaska and New Hampshire. They typically charge no more than $360.

However, some states have exorbitant fees that can run your car vehicle right out of your budget. If you want to avoid unexpected fees, you won’t have much luck in Alabama. In this state, the unexpected fees are substantially greater than in the rest of the country.

The average amount of unexpected fees is roughly $2,313. That’s nearly 18 times what you’d spend in Oregon, and 14 percent of the average auto sales price.

According to Forbes, there are a few other states with fees of approximately $2,000:

• Arizona: $2,297 or 13.9% of the average sales price
• Colorado: $2,284 or 13.8% of the average sales price
• Tennessee: $2,061 or 12.5% of the average sales price
• Florida: $1,869 or 11.3 percent of the average sales price

States with no sales tax on vehicles

A single-digit sales tax may not seem like much, but when purchasing anything worth thousands of dollars, such as a car, sales tax may be a significant burden. Having no sales tax might save you a lot of money on your automobile upfront.

Alaska, Delaware, Montana, New Hampshire, and Oregon are the only states in the United States that do not have a sales tax. Colorado, with a sales tax rate of 2.9%, has the lowest non-zero sales tax. Alabama, Georgia, Hawaii, New York, and Wyoming are the next five states with the lowest sales tax rate of 4%.

States with the cheapest auto insurance

Car insurance is required by law in a lot of states. Rates vary depending on your area as well as the make and model of your vehicle, so insurance is an important element to consider when purchasing a car. Maine has the lowest car insurance rates of any state.

Annual premiums in Maine are roughly $864, which is hundreds of dollars less than the national average of $1,318. Ohio and Idaho also have low annual vehicle insurance prices of less than $1,000.

Michigan has the highest automobile insurance rates in the country. Michigan’s vehicle insurance is so expensive that the state government is working on strategies to reduce it.

New Hampshire

New Hampshire is overall the cheapest state to buy a car. The unexpected fees when purchasing a car in New Hampshire are quite minimal.

The lack of state sales taxes and minimal registration fees allow you to save money upfront. Insurance rates in the state are also quite modest, at roughly $941 per year. In New Hampshire, the average yearly cost of car ownership is roughly $2,691.

Florida

Florida is the second cheapest state to buy a car. Despite having the lowest starting car pricing due to its big market, it has a 6% sales tax. Furthermore, Florida’s registration and title costs are significantly higher than those in New Hampshire.

The average vehicle insurance rate in Florida is $1,878 per year, which is approximately 31% more than the national average.

North Carolina

Here are some of the reasons why North Carolina is one of the most affordable places to buy a used car:

• The sales tax on cars is merely 3%.
• The car purchase comes with relatively low title and registration fees.
• Cheap car insurance.
• North Carolina has low maintenance and upkeep costs.

Why does Missouri rank as the best state to buy a car?

• Their initial prices are comparable to other states.
• Their gas rates are among the lowest in the country.
• Most of their car-buying charges, including ownership, transportation, title, and registration fees, are lower than in most other states.
• Their auto insurance rates are very reasonable.

Ohio

Ohio is also a low-cost state for buying a used car for the following reasons:

• Ohio has some of the lowest insurance prices in the country.
• Gas and maintenance expenses are also among the lowest in the country.

Tips for buying a car from another state

Here are some key tips to remember when buying a car out of state:

• Before finalizing the deal, try to inspect the vehicle in person.
• If you’re purchasing a car online or can’t view it in person, use only companies that have a buyer’s remorse policy. Carvana, for example, provides purchasers seven days to test drive the vehicle and ensure there are no difficulties.
• If you’re buying a used car or from a private seller, ask if you can have it inspected by a reputable mechanic to confirm it operates as it should and to check for physical damage.
• Keep in mind that car prices change, and particular models may be less expensive in different states for a variety of reasons. Being specific about what you want might help reduce your selections and provide chances for discounts.
• Don’t forget to account for long-term maintenance fees and other expenditures involved with owning a vehicle.

Salam Team

Salam Team is made up of auto transport industry professionals. Their combined experience with the industry expands to decades. Knowledge sharing makes the team grow even faster and more effectively and they are rightly proud of strong team spirit. When they are not talking about auto transport, you can find them exploring new routes and exotic destinations like Anaconda, MT around the nation.

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Victoria Ruiz

A wanderer at heart, Victoria keeps taking her RAM 1500 to new places. She has been working in the auto transport industry for 7+ years. As an evangelist for Auto Star Transport (and as a friend who transports her vehicle), Victoria loves helping Auto Star Transport customers with help guides and insights. She is nowhere to be found when she is not in the office.

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