Buying a car is one of the biggest financial decisions most people will make, and choosing the right state to purchase it can save you hundreds—sometimes even thousands—of dollars. From taxes to registration fees, every state has different regulations that can significantly affect your bottom line.
This blog will help you uncover the best states to buy a car in 2025. You’ll learn what factors to consider, which states are the most cost-effective, and tips for navigating out-of-state purchases. By the end, you’ll be ready to maximize your car-buying budget and avoid unnecessary costs.
Factors to Consider When Choosing a State to Buy a Car
Before you decide where to buy your next vehicle, consider these four major factors:
1. Sales Tax
Some states have no sales tax on vehicle purchases, while others charge as much as 8-10%. States like Oregon, for example, boast no sales tax, which can lead to substantial savings on high-ticket items like cars. Be mindful, however, that some states may impose a use tax when you register a car bought out-of-state.
2. Registration Fees
The cost of registering a vehicle also varies by state and can increase based on factors like the car’s price, weight, or age. Some states have flat-rate registration fees, while others scale costs upwards on newer or more expensive cars. California, for example, has one of the highest registration fees, while states like Montana impose much lower costs.
3. Initial Vehicle Price
Beyond taxes, the initial sticker price of vehicles can differ across state lines. States with large dealer inventories and competitive markets, like Florida and Texas, often have better deals compared to states with fewer options.
4. Regulations and Additional Fees
Environmental regulations, emissions testing, and other state-based fees can impact the total cost of ownership. For instance, California has stringent emissions requirements, which may incur additional costs or limit the selection of vehicles you can purchase.
Weigh These Factors Carefully
Individually, sales taxes, registration fees, and other regulations might seem small, but together they can make a significant impact on how much you pay for a vehicle. Now let’s explore which states stand out for car buyers in 2025.
Top States to Buy a Car in 2025
If you’re shopping for a new or used car, these states are known for their buyer-friendly conditions:
1. Oregon
- Perks: No sales tax, flat registration fees, and reasonable vehicle pricing.
- Ideal For: Buyers looking to avoid hefty taxes.
- Heads Up: Depending on your home state, you may still need to deal with use taxes when registering.
2. New Hampshire
- Perks: No sales tax and low registration fees.
- Ideal For: Cost-conscious buyers, especially those in the Northeast.
- Heads Up: Smaller dealer inventory compared to larger states.
3. Florida
- Perks: Competitive pricing on used cars due to its large inventory of trade-ins.
- Ideal For: Used car buyers looking for variety and affordability.
- Heads Up: Higher dealer fees compared to other states.
4. Montana
- Perks: Low (or non-existent) registration fees for certain vehicles and no sales tax.
- Ideal For: RV owners or buyers of luxury vehicles seeking long-term savings.
- Heads Up: May be far for those not in driving distance.
5. Texas
- Perks: A competitive car market with slightly lower average vehicle prices.
- Ideal For: Buyers seeking new cars with better incentives.
- Heads Up: Sales tax applies but competitive pricing may offset costs.
By focusing on these states, you can avoid unnecessary expenses and secure the best possible deal for your next car.
State-by-State Analysis
Here’s a quick comparative breakdown of key states to help you decide:
| State | Sales Tax | Registration Fees | Average Price | Additional Notes |
| Oregon | None | Low, flat fee | Moderate | No sales tax is a major plus. |
| New Hampshire | None | Very low | Moderate | Small inventory but tax-free advantages. |
| Florida | Yes (6%) | Moderate | Low | Wide variety of used cars available. |
| Montana | None | Very low | Moderate-High | Excellent for high-value vehicles or RVs. |
| Texas | Yes (6.25%) | Moderate | Low | Competitive dealership incentives. |
Tips for Buying a Car Out-of-State
If you’re eyeing a deal across state borders, here’s how to make the process smoother:
1. Research Your Home State’s Registration and Use Taxes
Even if you buy a car in Oregon or Montana with no sales tax, you may owe your home state a “use tax” when you register it. Be prepared to calculate this cost in advance.
2. Get a Vehicle History Report
When purchasing a used car out-of-state, always ask for a detailed vehicle history report through services like Carfax.
3. Verify State-Specific Regulations
Certain states, like California, have strict emissions laws. Ensure that the vehicle you buy will meet your home state’s requirements.
4. Arrange Professional Car Shipping
For buyers who can’t or don’t want to drive their purchase home, professional car shipping services can transport your new car directly to your doorstep. To learn more, get insights at https://faltugyan.com/.
5. Check the Warranty
Is the warranty specific to a dealership, or does it work nationwide? Confirm coverage to avoid surprises.
Save Big on Your Next Car Purchase
Shopping in another state can lead to significant savings, but it also requires smart planning. By understanding sales tax regulations, registration fees, and the nuances of out-of-state purchases, you can make an informed choice and stretch your car-buying budget.
Are you planning on an out-of-state purchase? If so, choosing the right car shipping company is just as important! For trusted, professional service, visit https://faltugyan.com/ today and get more information.