May 25, 2024

What state has the cheapest used cars – All about trading outside the state of residence

Purchasing a car is a time-consuming and responsible process. Making a good decision requires checking many details. Even before starting the negotiation process, you have to pass many stages. First of all, you should choose the model that meets all your requirements. Then, you should search a lot for determining the market value and finding out how reliable it is. For determining chosen models’ reliability you can check consumer reports

Besides, if you are limited on a budget you might even think about getting a vehicle in another state. There are many individuals who buy automobiles outside of the state of residence and save a lot of money. Nonetheless, it might take a much longer time, it’s worth it. Below you will find what state sells the cheapest used cars, and learn all the tips that help you to get a vehicle with the best deal. So, let’s start exploring how to make the trading process profitable!

What state sells the cheapest used cars in the USA

First of all, before discussing the state that sells the cheapest used automobiles, we should note that the vehicle’s total cost is much different than the price shown in the advertisement. Overall cost includes registration fees, taxes, dealer fees, insurance, etc. Hence, while looking at a car, you should remember that additional costs are ahead.

Upon additional costs, there are different states, where it is preferable to buy a vehicle. For instance, Florida is the best state for initial costs. And by all means, initial cost plays the main role while making a decision whether you can afford it or not. Hence, the answer to the question of what state has the cheapest used cars for sale can be Florida. You can find vehicles 10% cheaper than in another state, according to Autolist. The main thing that determines cheap prices in this state, is that the majority of citizens are older people, who drive less and sell vehicles. In a big supply and less demand, prices on used automobiles are low. 

Besides initial cost, you should take into account tax fees, which might be quite expensive depending on a vehicle price and other factors. Luckily, there are some tax-free states. Remember, if you decide to purchase an automobile from the following states, you won’t have to pay sales taxes. Here is the list of sales tax-free states:

  • Alaska
  • Delaware
  • Montana 
  • New Hampshire
  • Oregon

Another important detail is the insurance cost. The average annual insurance cost is about 1,592$ per year. Insurance cost is calculated upon the vehicle’s condition, mileage data, its engine size, safety records of the car, the year of a release, and even upon the owners’ previous experience and credits. As we’ve already mentioned, while clarifying what state has the cheapest used cars, we should take into account that the overall cost includes insurance, taxes, and registration fees besides the initial price. As you can see the insurance cost can be quite expensive, hence I guess you would be interested in states that have the lowest insurance cost. Maine is the state where you can get the best deal on car insurance. Full coverage insurance costs only 963$ per year. Isn’t that amazing? It’s 629$ cheaper than the average cost in the USA.

To sum up, we’ve reviewed the most affordable states in different aspects. Now it’s time to summarize and find out in which state we can get a used vehicle with the lowest price. Overall, the most affordable state is New Hampshire. You might be surprised by this fact, as we have not mentioned New Hampshire as the best state for the lowest initial cost of automobiles. The thing is that the state is free of sales tax on cars. Besides, registration fees are remarkably low and the annual insurance cost is on average 1,169$. The insurance cost is still 423$ cheaper than the average. Upon combining all those factors, we can say that New Hampshire is outstanding while discussing what state sells the cheapest used cars. 

Now since we already know where we should buy a vehicle, we can move on to another topic and clarify its official side. Below you will find out all the needed information while purchasing a vehicle from a different state of residence.

What state has the cheapest used cars for sale and what you need to know to drive them home

After reviewing the previous information, we already know what state has the cheapest used cars for sale. But do we know which regulations apply while purchasing a car from a different state of residence? There are different approaches depending on by which source you get a car. If you buy a vehicle from a dealer, then the dealer will take care of the paperwork. The dealership will provide you temporary registration to take the purchased vehicle at home state. In case you purchase an automobile from a private seller, first of all, you should get the signed title from the owner and proof that the vehicle passed a smog test. All those documents should be taken in the state you are buying a car, showing that it could pass a smog test in a state of residence. 

Nonetheless, the above-mentioned process applies to all states, each state has different regulations and there can be some extra steps as well. After getting the temporary registration and title, you should register a car in your state after a specific period of time. For instance, Maryland’s temporary registration expires in 30 days since the purchase date, but the period can be different for another state. Hence, it’s preferable to check with your local department of motor vehicles (DMV) in advance, to explore all the needed information. 

As you already know, each state has its own regulations. Some states don’t provide temporary registrations, but only a temporary in-transit registration. In order to buy the temporary in-transit registration, you should own the following documentation: ID, vehicle insurance, the certificate of title, and the bill of sale. Generally, the in-transit permits expire in 30 days, likewise to temporary registration. And last but not least, is to obtain vehicle insurance. If you own all those documents, then you are ready to drive your new “best buddy” in your state of residence and enjoy the upcoming journey! 


All in all, as I’ve already mentioned, purchasing a car is a time-consuming process and requests clarifying many details. Nonetheless, owning all the needed information can make the process much easier and help you to save time and money. Now we know what state has the cheapest used cars. You can decide which state works for you the best, Florida or New Hampshire. You can get a used vehicle with the lowest price in Florida, but overall it’s a good idea to get it in New Hampshire as it’s free of sales tax and has a low cost of registration and insurance. Hopefully, you will find the above-mentioned information useful. Wish you good luck with the purchase! 

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