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Top 10 Cheapest States to Buy a Car and How Auto Transport Services Make It Convenient

Tihomir Petrov

Buying a car is one of the most significant purchases most Americans make, and where you buy it can greatly impact the total cost. Taxes, registration fees, insurance premiums, and even the supply and demand of vehicles vary by state. Here, we explore the top 10 cheapest states to buy a car, explain why they are cost-effective, and how you can take advantage of auto transport services like door-to-door car shipping to bring your dream car home effortlessly. Baltimore residents, take note—these insights could save you money!

Why Some States Are Cheaper for Car Purchases

States with lower taxes, reduced registration fees, and fewer hidden costs naturally make car purchases more affordable. Some states also offer competitive insurance premiums or eliminate sales taxes. Additionally, the cost-effectiveness can vary between new and used vehicles due to specific state laws and market dynamics.

Top 10 Cheapest States to Buy a Car

1. New Hampshire

  • Why It’s Cheap: New Hampshire stands out because it has no sales tax or personal property tax, and its registration fees are among the lowest in the nation.
  • Best for: Both new and used cars.
  • Baltimore Connection: Baltimore residents looking to avoid Maryland’s 6% sales tax can save thousands by purchasing in New Hampshire and using auto transport to ship the vehicle back home.

2. Oregon

  • Why It’s Cheap: Like New Hampshire, Oregon has no sales tax. The state also boasts minimal dealer fees.
  • Best for: New cars.
  • Pro Tip: Use car shipping services to transport your new ride without incurring high fuel or travel costs.

3. Florida

  • Why It’s Cheap: Florida’s large senior population leads to a high turnover of used cars, resulting in competitive pricing. Dealerships also tend to keep prices within MSRP.
  • Best for: Used cars.
  • Note for Baltimoreans: Pair a cheap flight to Florida with door-to-door auto transport to bring a cost-effective used car back to Baltimore.

4. Alaska

  • Why It’s Cheap: No statewide sales tax makes Alaska a contender, although dealership fees can vary widely.
  • Best for: New cars.
  • Logistics: Auto transport is essential here, as driving a car from Alaska to Baltimore is not practical.

5. South Dakota

  • Why It’s Cheap: A 3% excise tax replaces a traditional sales tax, and registration fees are based on vehicle weight rather than value.
  • Best for: Both new and used cars.
  • Car Shipping Tip: Reliable auto transport companies can handle shipping even from remote areas.

6. Maine

  • Why It’s Cheap: Low sales tax at 5% and modest registration and title fees make Maine a cost-effective state.
  • Best for: Used cars.
  • For Baltimore Buyers: Save on taxes and fees, then ship the car directly to Maryland.

7. Maryland

  • Why It’s Cheap: While Maryland isn’t the cheapest overall, it’s worth noting that it offers competitive pricing on certain car models and lower insurance rates compared to neighboring states.
  • Best for Local purchases, especially if avoiding shipping costs is a priority.

8. Montana

  • Why It’s Cheap: No sales tax and low registration fees make Montana a favorite among car buyers.
  • Best for: High-end or luxury vehicles.
  • Car Transport Essential: Given the distance, shipping a car to Baltimore is a wise move.

9. North Carolina

  • Why It’s Cheap: Low taxes and reasonable registration fees make North Carolina an attractive option.
  • Best for: Both new and used cars.
  • Baltimore Insight: A quick auto transport service can bring your car to the Charm City hassle-free.

10. Missouri

  • Why It’s Cheap: A modest 4.225% state sales tax and competitive dealer pricing make Missouri a great place to buy a car.
  • Best for: Used cars.
  • Pro Tip: Combine the savings with affordable car shipping services to make it even more worthwhile.

Buying Cars Online: Convenience at Your Fingertips

Finding a car in one of these affordable states is easier than ever thanks to online platforms. Websites like Autotrader, CarGurus, and Cars.com allow you to compare prices, filter by state, and find vehicles that fit your budget. For Baltimore residents, these platforms are an invaluable tool to locate cost-effective cars outside Maryland.

Additionally, many dealers now offer virtual tours, financing options, and the ability to complete most of the purchasing process online. This eliminates the need to travel to the dealership, saving you time and effort.

Using Auto Transport Services to Bring Your Car Home

Once you’ve found and purchased your car, the next step is getting it home. This is where auto transport services come in. Here’s why they’re an excellent choice:

Pros of Auto Transport Services

  1. Cost Savings: Depending on the distance, car shipping can be more affordable than driving the car yourself, especially when factoring in fuel, lodging, and time off work.
  2. Convenience: Door-to-door auto transport services mean the car is picked up from the seller and delivered directly to your home.
  3. Time Efficiency: Shipping is often faster than driving, particularly for long distances.
  4. Safety: Transporting a car on a trailer minimizes wear and tear compared to driving it cross-country.

Cons of Auto Transport Services

  1. Cost Variability: Prices can fluctuate based on distance, vehicle size, and seasonal demand.
  2. Coordination: Timing pickup and delivery can require some planning.

Renting a Car vs. Buying and Shipping

For Baltimore residents frequently traveling across states, car shipping offers an alternative to constantly renting cars. While renting might be convenient for short trips, purchasing a car from a cheaper state and using auto transport services ensures long-term savings and convenience.

The Bottom Line for Baltimore Residents

If you’re in Baltimore and looking to save on a car purchase, consider exploring options in these top 10 states. All online car-buying platforms can help you locate the perfect vehicle, and door-to-door auto transport services make it easy to bring your new ride back to Maryland. Whether you’re eyeing a new car from New Hampshire or a used gem from Florida, taking advantage of these cost-saving strategies can make car ownership more affordable and hassle-free.