What's The Cheapest State to Buy a Car?
You can be a master negotiator when you buy a car, but there are some things that are beyond your control. Unless you plan on moving before the purchase, the state where you live could either save you a few bucks or cost you badly once you tally up all the fees. There are some states that do much better than others, so here's hoping you live in one of the cheap states. If you've lived in the same state forever, then you might not realize how good, or bad, people have it elsewhere. There are state and local taxes, registration fees, and dealer document fees that all vary widely between each state. Registering a car can cost you as little as $20 in some states or soar on up to $600. RELATED: 5 Cheap Fast Cars You Can Buy Right Now
Dealer documentation fees can also add up with some states putting a cap on what's allowed and other allowing whatever the heck the dealer wants. They may charge nothing, or they may charge hundreds of dollars. State and local taxes also add up, with New Hampshire, Delaware, Montana, and Oregon being the only states without these taxes. Don't try driving over the border to buy because the tax is based on where you live not where you buy the car.
The worst states are Alabama, Arizona, and Colorado where taxes and fees hit you like a brick and account for 14% of the sale price. The cheapest states are Oregon and Alaska where those same fees are only 1% and 2% of the sale price. The average is 8.7% so there's a big swing by state. Now you know if you need to move before you buy your next car.
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