Who would've thought these states would be the top five?
Mojo Motors has just released a new study that anyone buying a car in the US needs to read, "The Cheapest States To Buy A Car." The study doesn't look at what states have the best deals but which states have the highest and lowest fees and taxes on car purchases. A total of four taxes and fees were used for the study: state and local taxes, the average registration fee and the average dealer documentation fee. Mojo Motors used a sample price of $16,500 to calculate the fees and taxes per state.
Alabama, Arizona, Colorado, Tennessee and Florida make up the top five. In Alabama, Arizona and Colorado taxes and fees made up 14 percent of the list price. Hawaii, Montana, New Hampshire, Alaska and Oregon make up the bottom five. There are no state and local taxes in New Hampshire and Oregon (or Delaware). In Alaska taxes and fees came out to only one percent of a car's sales price and in Oregon that number was only two percent. The 50 state average was 8.7 percent. Dealer documentation fees vary by dealership, but you can't just jump states to save cash, as taxes and fees are pegged to the state your car is registered in. So much for buying a McLaren in Alabama.