Seems like it's getting harder and harder to buy a used car these days – there are a lot of factors contributing to this. New vehicle prices are at an all-time high, pushing some buyers out of the market. And, it's affecting used car prices, too.
Seven States With the Highest Used Car Prices
When prices go up, the number of people that can afford vehicles begins to shrink. Some car buyers that are priced out of the new market then turn to the used market. This influx of consumers and borrowers eats up a lot of the inventory and the chain reaction of supply and demand drives up costs.
And for some people in states that were already seeing high vehicle prices, this means the cost of getting a used car is getting pretty pricey. If you're a used car buyer in any of these states, you're paying the most for your vehicles, according to a recent iSeeCars study.
The seven states with the priciest used cars on average are:
- Alaska: $29,656 – 20.0% above the national average
- Wyoming: $29,419 – 19.1% above the national average
- Montana: $27,303 – 10.5% above the national average
- Arkansas: $27,123 – 9.8% above the national average
- Idaho: $26,662 – 7.9% above the national average
- Texas: $26,620 – 7.7% above the national average
- New Mexico: $26,261 – 6.3% above the national average
The average price of a used car is $24,710 according to the study.
Buying a Car From a Surrounding State
If you live in any of the above states, or just aren't looking to pay that much for a used car, it may be a good idea to shop in surrounding states or regions that average lower costs on vehicles. Be aware that different states have different rules about vehicle purchases, so you have to do your homework before hopping over state lines to buy a cheaper car.
One thing to pay attention to is whether or not there are different emissions standards in the states you're purchasing in and your home state. Also, be aware that you have to pay taxes on your car where it's registered, not where you buy it.
Some states have reciprocity agreements that allow dealers to collect taxes and send them to your state, while others require you to pay them yourself at your DMV or Secretary of State office. Additionally, if you're dealing with bad credit, ensure you know what the lender requirements are before making the trip.
Save the Most in These States
Once you've done your research and you're ready to buy a used car, it could save you money to visit the states with the lowest average used vehicle prices.
The top five are:
- Indiana: $21,961 – 11.1% below the national average cost
- Ohio: $22,244 – 10.0% below the national average cost
- Connecticut: $22,528 – 8.8% below the national average cost
- Virginia: $22,618 – 8.5% below the national average cost
- Kentucky: $22,995 – 6.9% below the national average cost
Need a Loan on a Used Car?
If you're ready to take the plunge and get the used vehicle you've been waiting for, we want to help. At The Car Connection, we've gathered a nationwide network of special finance dealerships that are signed up with subprime lenders.
These lenders look beyond your credit situation and base your qualifications on real-world factors such as your income, residence stability, and willingness to make a down payment. We can help take the hassle out of finding a dealership that has the lending opportunities you need.
To get started just fill out our zero-obligation auto loan request form and we'll get to work connecting you to a local dealership.