: Frequently used by luxury buyers for its 0% tax and low registration costs, though residency rules apply.
: Offers 0% state sales tax and some of the nation's lowest dealer fees, though local municipal taxes may apply. cheap states to buy cars
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 : Frequently used by luxury buyers for its
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 : Capped at $75
These rankings consider the total "out-the-door" price, including tax, title, and dealer fees.