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.
If you’re over 50, take advantage of massive discounts and financial resources
Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.
How to become a member today:
- Go here, select your free gift, and click “Join Today”
- Create your account (important!) by answering a few simple questions
- Start enjoying your discounts and perks!
Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.
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.
Resolve $10,000 or more of your debt
Credit card debt is suffocating. It constantly weighs on your mind and controls every choice you make. You can end up emotionally and even physically drained from it. And even though you make regular payments, it feels like you can never make any progress because of the interest.
National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1
How to get National Debt Relief to help you resolve your debt: Sign up for a free debt assessment here. (Do not skip this step!) By signing up for a free assessment, National Debt Relief can assist you in settling your debt, but only if you schedule the assessment.
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.
Trending Stories
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.
Earn cash back on everyday purchases with this rare account
Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!2
With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!
This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.
Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.
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.
Lucrative, Flat-Rate Cash Rewards
FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.
Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn unlimited 2% cash rewards on purchases
Benefits
- Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Cell phone protection benefit (subject to a $25 deductible)
- Can redeem rewards at an ATM for literal cash
Drawbacks
- Foreign transaction fee of 3%
- No bonus categories
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 19.74%, 24.74%, or 29.74% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Subscribe Today
Want extra-cash moves to come right to you?
Stop browsing endlessly. Get proven ways to earn pocket money, help cover rent, and crush your debt — sent to your inbox daily.