If you're ready to buy a used car, prepare for some sticker shock: According to the Private Enterprise Research Center at Texas A&M University, the price of a used vehicle was 20.1% higher on average in January than it was three years earlier.
However, where you buy matters. According to a recent Consumer Affairs roundup of prices, some states offer better prices, allowing you to keep more money in your wallet.
Here are the best states to buy a used car if you are hoping to find a great price.
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15. Virginia
Average cost of a used car: $33,724
Used car prices in Virginia are reasonable compared to what you'll spend in many other states.
And here is more good news: Politicians have discussed eliminating the state’s property tax on cars.
14. Michigan
Average cost of a used car: $33,597
Car prices are coming down in Michigan, and the state government is trying to drive costs down even further.
Late last year, Michigan launched a new tax rebate that helps lower the cost of purchasing a car by up to $2,500.
13. Missouri
Average cost of a used car: $33,596
While the cost of a car in Missouri is lower than in some places, Bankrate reports that the state has relatively high rates of auto theft and uninsured motorists.
That has pushed insurance costs here 9% higher than the average nationwide.
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12. Maryland
Average cost of a used car: $33,377
The recent collapse of the Key Bridge in Baltimore was expected to raise the price of new cars, as many vehicles pass through the port each year. However, used car prices in Maryland remain reasonable.
11. New York
Average cost of a used car: $33,246
While it might seem like the cost of living can be high in some parts of New York, used car prices are actually quite affordable here in comparison with the rest of the country.
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10. Massachusetts
Average cost of a used car: $33,232
Not only is the price of used cars reasonable in Massachusetts, but the cost of car insurance is 28% lower than the national average, according to Bankrate.
The low rate of uninsured drivers in the state helps keep costs down.
9. Pennsylvania
Average cost of a used car: $33,097
Car prices are reasonable in Pennsylvania, despite the fact that drivers here like big vehicles, such as the Ford F-150, Chevrolet Equinox, and Ram 1500, according to data from iSeeCars.com.
8. Connecticut
Average cost of a used car: $32,991
Car buyers in Connecticut are breathing a sigh of relief: Prices have settled back down to earth after the state recorded the biggest jump in costs across the nation in 2022, according to iSeeCars.com.
7. Indiana
Average cost of a used car: $32,936
Indiana drivers traditionally gravitated toward bigger vehicles. But recently, they have been turning more to compact SUVs and smaller sedans, according to the Indy Auto Man website.
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6. Delaware
Average cost of a used car: $32,924
Although the cost of a used car is relatively low in Delaware, car insurance costs are actually 4% higher than the national average, according to Bankrate.
5. Rhode Island
Average cost of a used car: $32,789
Rhode Island may be the nation’s smallest state by land area, but it looms large on the list of the best places to buy an affordable car.
4. Hawaii
Average cost of a used car: $32,381
Hawaii is notorious for its high cost of living, with everything from groceries to homes selling at sky-high rates. However, the state’s residents catch a break on the price of used vehicles.
3. Ohio
Average cost of a used car: $32,267
The price of a used car is a relatively good deal in Ohio, but vehicles have still gotten more expensive here, just as they have nationwide.
Last year, the percentage of used vehicles priced under $20,000 dropped from 58% of inventory to just 16%, according to iSeeCars.com.
2. New Hampshire
Average cost of a used car: $31,833
If you want to find a used car in New Hampshire, you should have plenty of options: According to CoPilot, the state ranks second behind Maine for used car dealerships.
1. Vermont
Average cost of a used car: $31,445
Like many of the smaller New England states, Vermont has a lot of used cars relative to its population, iSeeCars.com executive analyst Karl Brauer told Consumer Affairs. That helps account for why used car prices are lower here.
One great way to add to your auto-related savings in Vermont or anywhere else is to do some comparison shopping to help you save on car insurance.
Bottom line
Used cars are getting more expensive, which can put your financial fitness in jeopardy. However, if you are fortunate enough to live in the right state, you might pay a bit less for your new set of wheels.
Wherever you live, make sure to shop around for the best deal. A little research and comparison shopping can go a long way toward reducing the price you pay for your next vehicle.
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