The Cheapest States To Buy a Car

If you’re thinking about buying a new set of wheels, you’re probably wondering where the best place to pick one up is, right? Each state has different laws when it comes to sales taxes and insurance, so it can be a bit confusing; here are the top ten choices you should consider.

If you live in-state or you plan to move to Oregon, buying a car here is perfect - there’s literally no sales tax and dealer documentation fees average at $127 or so. However, some unscrupulous dealers add “prep fees” to make up for it, so be careful where you shop.

New Hampshire has no sales tax, and there’s no personal income tax either, so you can budget smartly. You can also get away without liability insurance - unless you’re at fault or have DUIs, of course - but it's recommended to purchase anyway. However, there’s a limited used car trade and the weather tends to rust vehicles.

Sales tax is blessedly absent in Montana and there are zero emissions test fees! Even registration fees are low - especially if you have a permanent registration for an older model, so for all you collectors of golden oldies, Montana is the place for you. Younger drivers might experience higher insurance, though.

While there’s no state sales tax in Alaska, some areas impose small local taxes. Beyond that, dealership fees are low, as are registration costs. However, Alaska isn’t recommended for an out of state shopping trip - shipping costs for vehicles can run high, and the winters are unforgiving to car parts.

You won’t find any sales taxes in Delaware, and even though you pay registration fees, they’re as low as $40 per year! Its other main advantage is its proximity to nearby cities - they provide a good selection of used vehicles (though urban and younger drivers pay more on insurance).

If you’re in-state, Vermont is a good choice for new and slightly used cars because of the fairer cost and the lower prices on insurance premiums (though registration fees are average). It’s worth noting, however, that the salted winter roads can summon rust gremlins - check underneath the vehicle before you buy it!

Ohio has modest sales tax, and provides low insurance premiums and registration fees, too. Because it’s close to manufacturing hubs, the state also has decent dealerships and inventory… though you still have to shop smart to avoid being taken for a ride in the many unregulated dealerships.

With only 6% sales tax and low dealership fees, Idaho is a good shout for buying a car, but the biggest draw is its insurance rates - they’re the lowest in the country! Alas, the rural location can make dealerships limited, and winter can harsh your good vibes where vehicles are concerned.

Maine offers low document fees and sales tax, but the biggest hurrah is that car insurance isn't a requiement (even if most drivers still carry it). The downside to that is a combination of harsh winters and salted roads - old vehicles can gather a lot of rust - plus, an annual vehicle safety inspection is required.

If you can withstand the Minnesota winter rust monsters, the state has some appealing qualities for new and used car buyers. To begin with, the sales tax is 6.5%, but you don’t have to look out for extra hidden dealership fees. Registration is also cheaper on older vehicles, with rides aged 10+ years getting the maximum discount. Lastly, if you’re looking for trucks and AWD models, Minnesota has them in plentiful supply!