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Just looked into where is the cheapest state to buy a car and honestly the results are pretty interesting. Turns out it's not just about the sticker price - sales tax and dealer fees matter way more than I thought.
So Oregon comes out on top, no sales tax plus rock-bottom dealer fees around $350. Montana's similar situation with zero sales tax but way higher car prices, yet still affordable because of those tiny fees. New Hampshire's another no-tax state with prices actually below average, which helps a lot.
The weird part? Alaska ranks super high for affordability even though cars cost 20% more than the national average. Only works because their dealer fees are basically nothing - like $315 across the board. Delaware's got no sales tax too but the dealer fees kill the deal there.
If you're looking at cheaper states to buy a car, avoid the ones with high sales tax and expensive dealer fees. North Carolina, New Mexico, and Wisconsin aren't terrible but they're paying more in taxes and fees. Virginia's decent though - prices are basically average and dealer fees aren't crazy.
The takeaway? If you're serious about finding the cheapest state to buy a car, check both the sales tax rate AND what dealers are charging. Sometimes a state with slightly higher prices but zero tax beats one with lower prices and massive fees. Wild how much location actually impacts your total cost.