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Top 10 Cheapest States to Buy a Car
Top 10 Cheapest States to Buy a Car – 2025 Guide by Safemile Auto Transport
Buying a car in another state can be a smart financial move—if you know where to look. Whether you’re searching for better prices, lower taxes, or a broader selection, shopping across state lines can save you thousands. But before you hop on a plane or book a trailer, it’s important to understand the legal, tax, and shipping logistics involved.
In this guide, we break down the top 10 cheapest states to buy a car, factors to consider for out-of-state purchases, and how Safemile Auto Transport makes bringing your new car home easy and affordable.
🚘 Why Buy a Car Out of State?
While buying locally is more convenient, many buyers find significantly better deals in other states. Reasons include:
- Lower sales tax
- Cheaper registration fees
- Larger dealer inventories
- Fewer dealer markups
- Favorable used car market conditions
You may also find unique trims or specific vehicles that are rare in your area. Some states have better stock of electric vehicles, trucks, or specific models due to regional popularity.
🏆 Top 10 Cheapest States to Buy a Car in 2025
- New Hampshire
- 🚫 No sales tax
- Low registration fees
- No excise tax Pro tip: Excellent for buyers seeking tax savings on both new and used cars.
- Florida
- Competitive used car market
- High inventory and competition among dealers
- Favorable pricing for retirees selling vehicles Pro tip: Shop South Florida for the best deals on luxury used cars.
- Ohio
- Lower-than-average vehicle prices
- Modest registration and documentation fees
- Strong used vehicle supply Pro tip: Columbus and Cleveland have large dealership networks.
- North Carolina
- Affordable new and used cars
- Reasonable property and title fees
- Low insurance premiums Pro tip: North Carolina’s tax rate is 3%, significantly less than many coastal states.
- Indiana
- Low average car prices
- Streamlined titling and DMV processes
- Minimal dealer add-ons Pro tip: Target Indianapolis for volume-dealer incentives.
- Texas
- High inventory state = more negotiation power
- Competitive dealership pricing
- Low average car insurance rates Pro tip: Be ready to pay a modest 6.25% sales tax.
- Tennessee
- No income tax state = more consumer buying power
- Used car prices below national average
- Favorable for trucks and larger vehicles Pro tip: Nashville and Memphis offer the widest selections.
- Missouri
- Low dealer fees
- Competitive vehicle pricing across the state Pro tip: Missouri is often overlooked—making deals easier to negotiate.
- Wisconsin
- Lower cost of living = lower car prices
- Fairly low tax and fee structure Pro tip: Consider Milwaukee for both private sellers and volume dealerships.
- Michigan
- Home to the auto industry = frequent incentives and rebates
- Huge used car market Pro tip: Be wary of older cars exposed to road salt—get a full vehicle history report.
📄 What You Need to Know Before Buying Out of State
Legal & Documentation Requirements:
- Current driver’s license
- Proof of insurance
- Temporary registration (may be required to drive home)
- Sales tax documentation for your home state
- Vehicle inspection certificate (state-dependent)
Be aware that your home state may require a vehicle inspection within 30 days of purchase. It’s smart to research your DMV’s requirements in advance.
Tax Considerations:
- You usually pay sales tax in your home state, not where you buy the vehicle.
- Be sure the bill of sale reflects the correct taxable value.
- You may owe use tax if not collected at the time of purchase.
Some states also have local excise or county taxes, so double check your total estimated cost.
🚛 Shipping Your Out-of-State Vehicle with Safemile
Just because the deal is out-of-state doesn’t mean the process has to be complicated. Once you find the right car, Safemile Auto Transport helps bring it home safely and affordably.
With Safemile, you get:
- 🏠 Door-to-door car shipping
- 🚗 Open or enclosed transport options
- 🛰️ GPS tracking for peace of mind
- 🛡️ Fully insured service
- 🧾 Simple online booking and instant quotes
📞 Call us at 888-277-8212 or get a free quote today.
💸 Cost Comparison: Cheapest vs. Most Expensive States
| State | Avg. Used Car Price | Sales Tax | Registration Fees |
| New Hampshire | $22,000 | 0% | Low |
| Florida | $23,200 | 6% | Low/Moderate |
| California | $27,000 | 7.25%+ | High |
| Illinois | $25,500 | 6.25% | Moderate |
| New York | $26,300 | 4–8.875% | High |
Choosing the right state to buy from could save you hundreds—if not thousands—when you factor in both upfront and long-term ownership costs.
🔍 Tips for Buying a Car Across State Lines
- Always verify the vehicle’s history with a service like CARFAX or AutoCheck.
- Ask for a third-party inspection, especially with private sellers.
- Get insurance quotes early—you’ll need coverage before driving or shipping.
- Understand your state’s registration timeline—delays may lead to fines.
- Watch out for hidden dealer or documentation fees that vary from state to state.
🚩 Red Flags to Watch Out For
- Sellers refusing inspection or documentation
- Deals that seem too good to be true
- Unusual payment requests (e.g., wire transfers)
- Lack of vehicle title or history
Always trust your instincts. If something feels off, walk away.
📦 Transporting vs. Driving the Car Home
| Option | Pros | Cons |
| Driving | Immediate delivery, road test opportunity | Risk of breakdowns, high fuel/lodging costs |
| Shipping | Safer for long distances, no added mileage | Requires scheduling, external cost |
For long-distance or vintage purchases, shipping is almost always the safer and smarter choice. With Safemile’s insured and fully tracked transport services, your vehicle is in good hands.
📝 Final Thoughts
Buying a car out of state can offer serious savings—if you know where to look and plan for the logistics. States like New Hampshire, Florida, and Ohio are often the best bets for getting the most value, thanks to lower taxes and competitive pricing.
Whether you’re saving thousands by shopping across state lines or just trying to score a rare model not available locally, planning ahead is key.
Once you’ve sealed the deal, Safemile Auto Transport helps you finish the job—delivering your vehicle quickly, safely, and hassle-free.
📞 Ready to Ship Your New Car?
Whether you just bought a car from another state or plan to soon, let Safemile handle the transport so you don’t have to.
✅ Trusted by thousands of car buyers
✅ Fast, door-to-door delivery
✅ Real-time updates and full insurance
👉 Get a free quote or call 888-277-8212 today.
Wherever you buy, Safemile will get it home.