: Another 0% sales tax state with low registration fees ($51) and affordable insurance.
These rankings consider the total "out-the-door" price, including tax, title, and dealer fees. cheap states to buy cars
If you aren't in a "NOMAD" (tax-free) state, these states offer the best balance of low taxes and dealer costs. Alabama : 2% Colorado : 2.9% North Carolina : 3% (Highway Use Tax) Oklahoma : 3.25% States with the Lowest Dealer/Doc Fees : Another 0% sales tax state with low
: Offers 0% state sales tax and some of the nation's lowest dealer fees, though local municipal taxes may apply. Alabama : 2% Colorado : 2
: The top overall choice. It has 0% sales tax and low documentation (doc) fees capped by law.
Dealer fees can vary wildly because many states do not cap them. : Capped at $75 . Arkansas : Typically around $110 . South Dakota : Averages $115 with low excise taxes. New York : Capped at $175 . 🛠️ Best States for Total Ownership Costs
Finding the cheapest state to buy a car involves balancing purchase prices, sales taxes, and ongoing fees. For 2026, and New Hampshire are consistently rated as the top choices because they charge zero sales tax and maintain low registration fees. 🏎️ Top 5 Cheapest States to Buy a Car