The Best and Worst States to Buy a Car in 2024: Navigating Taxes, Fees, and Inventory (2024)

FAQs

Should I buy a car in 2024? ›

Experts say that 2024 will be the best year to purchase a new car since 2019. As interest rates slowly drop throughout the remainder of the year, payments will become more manageable. Don't overlook manufacturer rate promotions, as they can save you thousands of dollars.

Experts predict that used car prices will continue to fall slightly over the rest of the year³. Expect to see used SUVs and sedans experience the largest price decreases in the upcoming months, which is consistent with early 2024 trends. These price decreases won't be dramatic, though.

As you can see, New Hampshire is the most affordable state for new and used car purchases. It's worth noting that Florida and Oregon are viable choices. Florida's lowest starting cost can explain its unanticipated expenses. Furthermore, Florida cars will be in much better shape, which is a huge long-term benefit.

Credit the federal government's vehicle import laws, which allow the importation of vehicles that are at least 25 years old "without regard to whether it complies with all applicable Federal Motor Vehicle Safety Standards." This age is based on the date of manufacturing, meaning that a given car can only be imported ...

New Car Prices – June 2024 Update

According to the most recent data from Cox Automotive, the average transaction price for new cars is $47,433. That's down 0.2% year-over-year, but up 0.5% since last month.

Despite that, prices are still higher than they should be, as a new iSeeCars study found that the average new car is priced above MSRP, though they're slightly less painful than they were a year ago.

While the best state will vary based on any given driver's personal needs, there is a clear general winner if you're looking for the most affordable state to buy a car in. The grand champion is New Hampshire.

Which US state has no car tax? ›

There are five states (Alaska, Delaware, Montana, New Hampshire, and Oregon) that don't pay any sales tax at all when purchasing a car.

What states have no sales tax? There are five states with no general statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. These are sometimes referred to as the NOMAD states (“N” for New Hampshire, “O” for Oregon, and so forth).

Taxes and fees: You may need to pay sales tax, and other fees might make it more expensive to register an out-of-state vehicle. Different registration requirements: Some vehicles might need to be modified before you can register them in certain states or may not be allowable at all.

States like Alaska, Montana, Oregon, Delaware, and New Hampshire stand out due to their lack of statewide sales tax, as well as generally low unexpected fees. Iowa is also noteworthy for its affordable insurance rates, averaging less than $720 annually.

Lower Auto Loan Rates Could Make 2024 a Good Time To Buy or Refinance. While market predictions are bullish on the funds rate — and by extension, auto loan rates — finally coming back down in 2024, it's still not a guarantee. Powell and others at the Fed remain committed to their target of 2% inflation.

Auto loan rates for new and used vehicle purchases fell in the first quarter of 2024 to 6.73% and 11.91%, respectively, down slightly from the 15-year highs we saw at the end of 2023, according to Experian.

Here's what to expect for the auto industry in 2024: 1. Sales of new cars should hit 15.7 million, up from 2023. Vehicle availability has steadily improved after years of shortages, so more shoppers should find a ride to suit them.

It turns out that some times are better than others to buy a car. Even though there often are sales on vehicles throughout the year, such as around Memorial Day and Labor Day, the final few months of the year — think October to December — is the real sweet spot for buying.