What Are The Best (And Worst) States For Car Shopping In The US?

Not everyone has the means or desire to travel to a different state to purchase a car, but if you do, you might be able to score a better deal. As well as inventory levels differing between states, dealerships are also able to charge different administration fees depending on where they're located. Factor in sales taxes on top, and the difference between buying in a favorable state and buying in a less favorable state can be significant. These differences remain across the car-buying spectrum, whether you're looking for one of the cheapest new cars on sale or splashing out for a luxury model.

The exact best location to buy a car will depend on where you are located within the country and what stock is available in that area, but a report by CarEdge highlighted a few of the best and worst states to buy a car in 2025. Delaware, New Hampshire, Oregon, Montana, and Alaska are comfortably among the best states to buy a new car according to the report, since they have no statewide sales tax.

On the other end of the spectrum, high statewide sales taxes, high average local taxes, and high administration (or "doc") fees make a few states particularly unappealing for buying a new car. North Carolina, Florida, Mississippi, and California all feature among the most punishing levels of taxes and fees. However, Florida's car market does have some redeeming qualities that separate it from the rest of the poor performers.

The CarEdge report highlights Florida as a good place to buy used cars, since it has some of the highest inventory levels anywhere in the country. Buyers will have to be aware of Florida's higher rate of flooded cars, but careful buyers should find that there are plenty of good used cars to pick from in the state. However, if it is low average used car prices that are most important to you, Florida might not be the best state to start looking.

A study by iSeeCars found that the three states with the cheapest used listings on average were Connecticut, Ohio, and Indiana, which was the cheapest in the country. Alaska had the highest average used car prices, with Wyoming and Montana taking the second and third spots. Two of the worst-performing states to buy a new car also made an appearance in the ten priciest places to buy a used car: Mississippi and California. If you're shopping in either of those two states, whether you're financing a new or used car, it's well worth looking outside of the state to see if you can get a better deal.