When buying a car, in addition to the price of the car, there are many costs to take into account. Other costs such as documentation costs, DMV registration fees and taxes can increase the total cost of the car. It is important to keep an eye on these additional costs and know that they can vary depending on the condition in which you purchase the car. As such, here are the best and worst states to buy a car based on initial cost and additional costs.
The best condition to buy a used car
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The best state to buy a used car this year is Florida. According to The balance, used car prices in Florida are typically 10% cheaper than the national average due to the aging population. As 20.5% of the population is 65 years or older, older drivers are more likely to give up their car, whether due to death, impaired driving or poor eyesight. On the other side of the Florida population are high-income individuals who tend to sell used or older cars quickly in order to maintain their luxury lifestyle.
The worst condition to buy a used car
On the other coast of the US, car owners in California tend to keep their cars for extended periods of time. The Balance notes that long-term ownership is likely due to that state’s high cost of living and unemployment. As you can imagine, this creates a highly competitive used car buyer market that is only amplified by high VAT rates and gas prices.
The best condition to avoid high car costs
If you want to buy a car and avoid some of the extra costs mentioned above, Oregon is a great place to shop. The maximum amount for processing fees in that state is $115 if the dealer does not use an integrator, but it can go up to $150 if the dealer does use one.
As for the actual documentation fee, the fee the dealer charges to file the DMV documents, California has the lowest cost at $85, according to Your car lawyer†
The worst state to avoid low car costs
If you want to avoid the high cost of buying a car, you may want to avoid buying one in Alabama. Buyers in this state typically pay about $2,313 in fees, followed by other expensive states like Arizona, California, and Tennessee. In those states, buyers can expect to pay an average of $2,000 in additional fees when buying a car.
Speaking of Alabama, this state also has one of the highest documentation costs in the US, $485. However, that’s cheap compared to the doc fees in other states like Virginia and North Carolina, which charge $599 for their documentation fees.
Do your research when buying from out of state
If you’re planning to buy a new or used car out of state, it’s important to research all additional taxes and fees other than the cost of the car. Depending on the state where you buy the car, it may be cheaper to buy it in your own state. Of course, the lingering inventory shortage isn’t helping, but don’t forget to cast a wide net to see what options are available to you.
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