Buying a car is very expensive and it can be more expensive in few states as per their regulations where you need to pay some additional feels and sales tax like in California and New York. Similarly, it can be less expensive to buy a new car or a used car in a few states, like Florida, New Hampshire. So let us have a look at the few cheapest states to buy a used car without any problem.

What’s the best State to Buy a Used Car?

When a person thinks of buying a car then the first thing people consider is the initial cost. And this initial price of new & used cars is not standard in all states. It changes according to the state law and taxes which can be very beneficial for you. Florida state has some of the cheapest options when buying a used car as the rates are about 10 percent less as compared to other states. With an older population, drivers sell their vehicles than in other states so there are more opportunities to purchase used cars at a more affordable price.

What State has the Lowest Car-Buying Fees?

Initial cost is not the only aspect when you go for purchasing a new car. There are many factors and fees to keep in mind when purchasing a car as they add up in the final cost. The initial fees while buying a car can go upto $130 in places like Portland, Oregon etc.

States like Alaska & New Hampshire are approximately $360. However, in some of the most expensive states like Alabama, Colorado, Arizona, Connecticut & Tennessee have some of the highest fees upto $2350.

Best States to Own a Car

As we have already mentioned, that initial feel comes with several maintenance and insurance fees. So, let us have a look at the top states where you have to pay less total amount while buying a new and used car.

New Hampshire

New Hampshire is among the states which has the most affordable fees. The one time initial fee associated with purchase is around $25 and average cost of ownership including insurance and gas costs around $2600. The best thing to buy a new car in New Hampshire is there is no sales tax which can save you a lot of money. Insurance premiums are also quite low stopping at approx. $900 with an average of $300 a year for the cost of repairs.


The initial purchase fees might not be low in Missouri but it has some of the cheapest gas prices with very low transportation costs. According to the survey, people in Missouri spend less on registration & title fees, as well as auto insurance & costs associated with upkeep and maintenance.

North Carolina

North Carolina has a tax rate of just 3 percent, which is lower than most other states. However, insurance is a little bit higher than other states. It is a perfect place to buy and insure a new vehicle, but a little bit costly for maintaining the vehicle.


car ownership has very simple and inexpensive prices in Wisconsin. With less investment in insurance, car maintenance and gas prices Wisconsin is one of the best places to buy a new car in the States.


Sales tax in Ohio is 5.75 percent which is higher than other states and can set up to raise initial and overall cost. But the sales tax is very low, which is second most lowest in all of the 50 states.


Virginia is known for its most expensive repair costs in the States but has very low premium and gas prices are relatively inexpensive when compared with other states.

As per our suggestions overall cheapest state to buy a new car is New Hampshire because of lack in sales tax and low registration fees. You can buy from Florida or give online platforms like Cardealersbay a chance to buy a new car or to buy a used car. All you need to remember is car prices can fluctuate everywhere and there is still a 6 percent sales tax on car purchase and a much larger registration along with title fees.