{"id":15079,"date":"2025-02-03T09:00:50","date_gmt":"2025-02-03T15:00:50","guid":{"rendered":"https:\/\/www.netcredit.com\/blog\/?p=15079"},"modified":"2025-10-22T11:38:35","modified_gmt":"2025-10-22T16:38:35","slug":"cheapest-place-to-buy-a-car","status":"publish","type":"post","link":"https:\/\/www.netcredit.com\/blog\/cheapest-place-to-buy-a-car\/","title":{"rendered":"The Cheapest States and Cities for Used Car Shopping"},"content":{"rendered":"<p>The average used car is now listed at <a href=\"https:\/\/www.freep.com\/story\/money\/cars\/2024\/11\/14\/used-car-prices-drop-demand-for-cars-shoots-up\/76217745007\/\" target=\"_blank\" rel=\"noopener\">$25,499<\/a>, according to auto trading experts Cox Automotive. And it is getting harder to find a bargain, as technical and safety advances create a bigger gulf between recent used cars and older stock that no longer meets consumer expectations. But with <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-11-04\/soaring-2024-new-car-prices-turn-more-buyers-toward-used-vehicles\" target=\"_blank\" rel=\"noopener\">less than 0.1%<\/a> of new cars sold for under $20,000 and every new vehicle taking its toll on the <a href=\"https:\/\/www.nationalgeographic.com\/environment\/article\/environmental-impact\" target=\"_blank\" rel=\"noopener\">environment<\/a>, buying secondhand remains a smart choice for many Americans.<\/p>\n<p>However, prices have been notably volatile in recent times. Used car prices soared by <a href=\"https:\/\/www.usatoday.com\/story\/money\/cars\/2022\/02\/19\/used-car-prices-so-high\/6828547001\/?gnt-cfr=1&amp;gca-cat=p\" target=\"_blank\" rel=\"noopener\">30% or more<\/a> at the tail end of the pandemic, as new stock was in short supply. And while prices have fallen in general since 2023, they \u201ccan only go down so far because, during the pandemic, we produced 10 million less cars than we normally would,\u201d <a href=\"https:\/\/www.usatoday.com\/story\/money\/personalfinance\/2024\/03\/25\/used-new-car-value-prices\/73073720007\/\" target=\"_blank\" rel=\"noopener\">says Pat Ryan<\/a>, chief executive of car-shopping app CoPilot.<\/p>\n<p>Market patterns also differ from city to city and state to state. So, following our study into the <a href=\"https:\/\/www.netcredit.com\/blog\/car-repair-costs-by-state\/\">best and worst states for car repair costs<\/a>, we compared thousands of used car listings like-for-like around America and calculated how the price premium you\u2019ll pay \u2014 or the savings you could make \u2014 buying in one place over another. We also compared these results to 2023 prices to reveal the markets that are moving in the right direction.<\/p>\n<h2><strong>What We Did<\/strong><\/h2>\n<p>We analyzed listings for 14 popular car models from cars.com all across 150 major cities, removing cars priced under $1,000, with less than 50 miles or lacking information about the engine\/fuel\/transmission. Then, we adjusted their prices using a log-linear regression model (OLS) to normalize a list of parameters, including mileage, number of owners, etc. Finally, we ranked all locations by the price premium of used cars compared to the national average.<\/p>\n<h2><strong>Key Findings<\/strong><\/h2>\n<ul>\n<li>In <strong>Alaska,<\/strong> a used car costs <strong>+9.70%<\/strong> more than the same car would on average across the country \u2014 the <strong>biggest price premium<\/strong> of any state.<\/li>\n<li><strong>Miami<\/strong> is the <strong>cheapest major city<\/strong> to buy used, with cars costing <strong>-7.97%<\/strong> less than the national average for the same car.<\/li>\n<li>The price of a used car in <strong>North Dakota<\/strong> has fallen by <strong>-7.32%<\/strong> year-on-year against the national average \u2014 the <strong>biggest decrease of any state<\/strong>.<\/li>\n<li>The <strong>biggest annual price rise<\/strong> for used cars is in <strong>San Francisco<\/strong>, where prices are up <strong>+12.38%<\/strong> against the national average.<\/li>\n<\/ul>\n<h2><strong>Alaska Sells America\u2019s Priciest Used Cars<\/strong><\/h2>\n<p>Alaska (+9.70% above national average), Hawaii (+9.26%) and Mississippi (+8.64%) are the most expensive states in America to buy a used car. While supply is always a tricky business in the non-contiguous states, Mississippi joins Alaska and Hawaii in the top three, having suffered the second-highest price increases of any state over the past year (see North Dakota Experiences Dramatic Price Drop, below).<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-15083\" src=\"https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/01_The-Cheapest-and-Most-Expensive-States-for-Used-Car-Shopping.png\" alt=\"U.S. map showing the states where it is cheapest and most expensive to buy a used car \" width=\"2400\" height=\"2162\" srcset=\"https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/01_The-Cheapest-and-Most-Expensive-States-for-Used-Car-Shopping.png 2400w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/01_The-Cheapest-and-Most-Expensive-States-for-Used-Car-Shopping-300x270.png 300w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/01_The-Cheapest-and-Most-Expensive-States-for-Used-Car-Shopping-1024x922.png 1024w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/01_The-Cheapest-and-Most-Expensive-States-for-Used-Car-Shopping-768x692.png 768w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/01_The-Cheapest-and-Most-Expensive-States-for-Used-Car-Shopping-1536x1384.png 1536w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/01_The-Cheapest-and-Most-Expensive-States-for-Used-Car-Shopping-2048x1845.png 2048w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/01_The-Cheapest-and-Most-Expensive-States-for-Used-Car-Shopping-150x135.png 150w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/01_The-Cheapest-and-Most-Expensive-States-for-Used-Car-Shopping-640x577.png 640w\" sizes=\"auto, (max-width: 2400px) 100vw, 2400px\" \/>North Dakota has America\u2019s cheapest used cars, with vehicles costing -7.73% less than the national average, when comparing listings like-for-like. This follows a dramatic fall in prices in the state (see below). New Jersey (-6.02%) is not far behind, despite the <a href=\"https:\/\/www.njspotlightnews.org\/2024\/10\/nj-says-time-to-pay-sales-tax-on-electric-cars\/\" target=\"_blank\" rel=\"noopener\">end of tax breaks<\/a> for new electric vehicles in October, which might be expected to drive up demand for used cars. The most popular used car in New Jersey is the <a href=\"https:\/\/wpst.com\/best-selling-used-car-nj-2024\/\" target=\"_blank\" rel=\"noopener\">Honda Civic<\/a>.<\/p>\n<h2><strong>North Dakota Experiences Dramatic Price Drop<\/strong><\/h2>\n<p>Used car prices in North Dakota have fallen -7.32% against the national average since 2023. However, while prices may be low, interest rates are high \u2014 so it\u2019s worth pausing to ensure your financing deal is amenable before being seduced by a small price tag. It is also essential to check if the used car is cheap because of the market and not because it comes with nasty surprises: North Dakota\u2019s \u2018<a href=\"https:\/\/www.library.nd.gov\/statedocs\/AttorneyGeneral\/LemonLaw20061017.pdf\" target=\"_blank\" rel=\"noopener\">Lemon Law<\/a>\u2019 protects new car buyers against faulty goods but does not protect those buying used vehicles.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-15084\" src=\"https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/02_The-States-Where-Used-Car-Prices-Have-Increased-the-Most-Since-2023.png\" alt=\"U.S. map showing the states where used car prices changed the most\" width=\"2400\" height=\"2162\" srcset=\"https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/02_The-States-Where-Used-Car-Prices-Have-Increased-the-Most-Since-2023.png 2400w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/02_The-States-Where-Used-Car-Prices-Have-Increased-the-Most-Since-2023-300x270.png 300w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/02_The-States-Where-Used-Car-Prices-Have-Increased-the-Most-Since-2023-1024x922.png 1024w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/02_The-States-Where-Used-Car-Prices-Have-Increased-the-Most-Since-2023-768x692.png 768w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/02_The-States-Where-Used-Car-Prices-Have-Increased-the-Most-Since-2023-1536x1384.png 1536w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/02_The-States-Where-Used-Car-Prices-Have-Increased-the-Most-Since-2023-2048x1845.png 2048w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/02_The-States-Where-Used-Car-Prices-Have-Increased-the-Most-Since-2023-150x135.png 150w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/02_The-States-Where-Used-Car-Prices-Have-Increased-the-Most-Since-2023-640x577.png 640w\" sizes=\"auto, (max-width: 2400px) 100vw, 2400px\" \/><\/p>\n<p>No state has seen a price rise greater than +3% against the national average. Montana has the fastest price growth, with +2.84% increase year-on-year. Montana actually has more cars registered per capita than any other state, although this seems to be due to people taking advantage of a <a href=\"https:\/\/www.hagerty.com\/media\/market-trends\/hagerty-insider\/the-montana-license-plate-loophole-explained\/\" target=\"_blank\" rel=\"noopener\">loophole<\/a> that allows cars registered in the state to avoid or minimize taxation. However, gasoline consumption is on the rise in Montana, against national trends, suggesting that car use is increasing in this sparsely populated state, even as more tightly-packed areas move towards greater use of public transit.<\/p>\n<h2><strong>Miami is the Cheapest Major City to Buy Pre-Owned<\/strong><\/h2>\n<p>In Bakersfield, California, used cars cost +10.05% more than the national average \u2014 making it the priciest major city in America. This represents a +10.05% price rise locally, year-on-year, against the national average. There has been a <a href=\"https:\/\/www.bakersfield.com\/news\/car-dealers-look-for-solutions-to-jump-in-crime-along-bakersfield-auto-mall\/article_e73b8378-bc8e-11ee-b76b-873e5613eaad.html\" target=\"_blank\" rel=\"noopener\">crime surge<\/a> at Bakersfield Auto Mall, which has led to dealerships taking on extra security and recoupment costs.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-15085\" src=\"https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/03_The-Cheapest-and-Most-Expensive-Cities-for-Used-Car-Shopping.png\" alt=\"Infographic showing which U.S. cities are the most expensive and cheapest for buying a used car\" width=\"2400\" height=\"2162\" srcset=\"https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/03_The-Cheapest-and-Most-Expensive-Cities-for-Used-Car-Shopping.png 2400w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/03_The-Cheapest-and-Most-Expensive-Cities-for-Used-Car-Shopping-300x270.png 300w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/03_The-Cheapest-and-Most-Expensive-Cities-for-Used-Car-Shopping-1024x922.png 1024w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/03_The-Cheapest-and-Most-Expensive-Cities-for-Used-Car-Shopping-768x692.png 768w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/03_The-Cheapest-and-Most-Expensive-Cities-for-Used-Car-Shopping-1536x1384.png 1536w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/03_The-Cheapest-and-Most-Expensive-Cities-for-Used-Car-Shopping-2048x1845.png 2048w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/03_The-Cheapest-and-Most-Expensive-Cities-for-Used-Car-Shopping-150x135.png 150w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/03_The-Cheapest-and-Most-Expensive-Cities-for-Used-Car-Shopping-640x577.png 640w\" sizes=\"auto, (max-width: 2400px) 100vw, 2400px\" \/><\/p>\n<p>Miami (-7.97%) and Fargo (-7.73%) are neck and neck to be the cheapest city for used cars. And the comparative price of pre-owned vehicles against new ones is swaying the market towards the more sustainable option. \u201cI was never a used-car buyer, because I just felt like that was somebody else\u2019s nightmare that I didn\u2019t want,\u201d <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-11-04\/soaring-2024-new-car-prices-turn-more-buyers-toward-used-vehicles\" target=\"_blank\" rel=\"noopener\">one Florida auto buyer told Bloomberg<\/a> upon buying his first used car at the age of 61. \u201cBut what choice did I have?\u201d<\/p>\n<h2><strong>San Francisco Used Car Prices Accelerating Fastest<\/strong><\/h2>\n<p>San Francisco leads four California cities with the fastest-growing used car prices in America. The price of a used car has risen +12.38% against the national average in San Francisco since 2023. \u201cI feel like there\u2019s a little bit of an inflection point \u2014 you don\u2019t want anything that\u2019s too, too old,\u201d San Franciscan <a href=\"https:\/\/www.mercurynews.com\/2024\/03\/31\/car-prices-in-the-bay-area-finally-on-the-way-down-but-is-it-the-right-time-to-buy\/\" target=\"_blank\" rel=\"noopener\">Julie Rice told the Mercury<\/a> in March, adding that looking at used car prices \u201cstarts to cross into the territory of, \u2018Why don\u2019t we get a new car?&#8217;\u201d There is an alternative: San Francisco is the city where you can <a href=\"https:\/\/www.apta.com\/wp-content\/uploads\/APTA-POLICY-BRIEF-Transit-Savings-09.27.2023.pdf\" target=\"_blank\" rel=\"noopener\">save the most money<\/a> by switching to public transit, according to the American Public Transportation Association.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-15086\" src=\"https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/04_The-Cities-Where-Used-Car-Prices-Have-Increased-the-Most-Since-2023.png\" alt=\"Infographic showing in which cities used car prices have changed the most \" width=\"2400\" height=\"2162\" srcset=\"https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/04_The-Cities-Where-Used-Car-Prices-Have-Increased-the-Most-Since-2023.png 2400w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/04_The-Cities-Where-Used-Car-Prices-Have-Increased-the-Most-Since-2023-300x270.png 300w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/04_The-Cities-Where-Used-Car-Prices-Have-Increased-the-Most-Since-2023-1024x922.png 1024w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/04_The-Cities-Where-Used-Car-Prices-Have-Increased-the-Most-Since-2023-768x692.png 768w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/04_The-Cities-Where-Used-Car-Prices-Have-Increased-the-Most-Since-2023-1536x1384.png 1536w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/04_The-Cities-Where-Used-Car-Prices-Have-Increased-the-Most-Since-2023-2048x1845.png 2048w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/04_The-Cities-Where-Used-Car-Prices-Have-Increased-the-Most-Since-2023-150x135.png 150w, https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/01\/04_The-Cities-Where-Used-Car-Prices-Have-Increased-the-Most-Since-2023-640x577.png 640w\" sizes=\"auto, (max-width: 2400px) 100vw, 2400px\" \/><\/p>\n<p>Two cities have enjoyed a price decrease of more than -5% compared to the national average: Bridgeport, Connecticut (-6.42%), and Cincinnati (-5.52%). Of course, it\u2019s essential to verify the buyer and the vehicle before handing over your money: two used car sellers in Connecticut were recently <a href=\"https:\/\/www.ctpost.com\/news\/article\/monroe-stratford-men-charged-forged-car-odometers-18578527.php\" target=\"_blank\" rel=\"noopener\">charged<\/a> with a list of crimes from third-degree telephone fraud to conspiracy to commit illegal tampering with an odometer after selling a car with 121,000 miles on it for cash in a Monroe car park. \u201cIt was purchased by a dealership in Massachusetts then resold to an auction house in Connecticut,\u201d reported Monroe Police Lt. Michael Sweeney. \u201cIt was purchased at auction 13 days earlier with 219,000 miles.\u201d<\/p>\n<h2><strong>Shopping Around<\/strong><\/h2>\n<p>Shopping for a used car can turn up surprises, both good and bad. Seeking out cheaper markets and remaining open-minded about what\u2019s available is one way to keep prices down when other means of saving money fail.<\/p>\n<p>When you do find a vehicle that interests you, negotiating no longer has the same power because \u201cwe have so much information, it\u2019s very difficult to charge a different price from your competitors,\u201d <a href=\"https:\/\/www.cnbc.com\/2024\/10\/26\/i-just-bought-a-used-car-for-my-teen-driver-heres-what-i-learned.html\" target=\"_blank\" rel=\"noopener\">says Ivan Drury<\/a>, director of insights at car shopping guide Edmunds. This being the case, it is worth not only researching the same model across multiple dealers but also trying to get a deal on financing, extras or incentives. With some <a href=\"https:\/\/www.coxautoinc.com\/market-insights\/used-retail-vehicle-sales-march-2024\/\" target=\"_blank\" rel=\"noopener\">1.66 million used cars<\/a> sold each year, it is possible to find the deal for you.<\/p>\n<h2><strong>Methodology<\/strong><\/h2>\n<p>First, we curated a list of popular cars in the United States, including the following models: BMW X5, Buick Encore, Chevrolet Equinox, Dodge Durango, Ford Escape, Ford F-150, Honda Civic, Jeep Grand Cherokee, Mercedes-Benz C-Class, Nissan Altima, Porsche Cayenne, Tesla Model 3, Toyota Camry and Toyota Tacoma.<\/p>\n<p>Next, we retrieved from <a href=\"http:\/\/cars.com\/\" target=\"_blank\" rel=\"noopener\">Cars.com<\/a> all available listings (as of November 2024) for these cars across 150 major cities. We removed listings for cars priced under $1,000, cars with less than 50 miles, cars lacking information about the engine\/fuel\/transmission and cars with a build date later than 2024.<\/p>\n<p>After cleaning the data, we were left with 198,808 listings spanning locations across all U.S. states. To account for price differences caused by factors such as car age, mileage, etc., we ran a log-linear regression model (OLS) that normalized a list of parameters:<\/p>\n<ul>\n<li>Generation<\/li>\n<li>Trim<\/li>\n<li>Mileage<\/li>\n<li>Personal Use<\/li>\n<li>Owners<\/li>\n<li>Accidents<\/li>\n<li>Car Model<\/li>\n<li>Transmission Type<\/li>\n<li>Location<\/li>\n<\/ul>\n<p>Lastly, we removed all cities with fewer than 100 cars or where the coefficient of the location was not significant at 90% confidence, before ranking all locations by the price premium of used cars compared to the national average.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The average used car is now listed at $25,499, according to auto trading experts Cox Automotive. And it is getting &#8230;<\/p>\n","protected":false},"author":29,"featured_media":15088,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[626],"tags":[],"class_list":["post-15079","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-improving-finances"],"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","pp_post_mime_type":"publish","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Cheapest States and Cities for Used Car Shopping - NetCredit Blog<\/title>\n<meta name=\"description\" content=\"Discover the U.S. cities and states that are most and least expensive when it comes to shopping for a used car.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.netcredit.com\/blog\/cheapest-place-to-buy-a-car\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Cheapest States and Cities for Used Car Shopping - 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