10 States With the Worst Prices for Used Cars
As with anything else, where you live can have a major impact on how much you pay for certain goods and services. When it comes to used cars, you can find cheaper vehicles in some states than others.
According to iSeeCars, the typical cost of a used vehicle that’s one to five years old is $33,582. Use car prices have also fallen slightly over the past few years. From 2021 to 2022, for example, they dropped by 3%.
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If you’re in the market for a used car, here are the top states where prices are highest — and the states you might want to avoid buying a used vehicle in. Keep in mind that used car prices are only below the average in 12 states — check out the top 10 here. They’re higher in all other states.
Louisiana
Louisiana comes in as the cheapest place on this list to buy a used car with an average price of $35,893. This is $2,311 more than the national average, but $5,512 less than the most expensive state, Wyoming.
In New Orleans, you can expect to spend $3.11 for a gallon of gasoline. This is lower than the national average cost of gas, which was $3.608 as of April 9, 2024.
Full coverage car insurance is $3,629 a year. The national average is $2,118.
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Georgia
Next up is Georgia where the average cost of a used car is $36,016. Not only are used car prices higher here but so is the cost of gas. A gallon of fuel in Atlanta costs $3.40, on average. Full coverage car insurance costs $2,181.
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Washington
Only $103 more expensive than Georgia, Washington State has an average used car price of $36,119.
While this might not seem like much, it’s worth noting that the cost of gasoline is much higher in the Evergreen State than in many other locations. The average cost of fuel in Seattle is $4.99 — that’s nearly $1.50 higher than the national average.
On the other hand, a year of full coverage car insurance is $1,829. This is lower than the national average by quite a bit and could help balance the scales.
Arkansas
In Arkansas, the average price for a used vehicle is $36,343. While this might not seem that substantial, it can add up when you account for other costs of vehicle ownership — like car insurance, gas, and auto loan interest rates.
In Little Rock, the average price of gas is $2.99 a gallon, which is surprisingly low. On the other hand, full coverage car insurance is $2,061 in the state.
Idaho
The average cost of a used car in Idaho is $37,092. This is $3,510 higher than the U.S. average.
The average cost of fuel in Boise is $3.85 per gallon, which is also high. However, the average annual price of full coverage car insurance is just $1,021.
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South Dakota
South Dakota comes in with an average used car price of $37,192. This is slightly less expensive than the neighboring state of North Dakota, so if you’re trying to save money, you might want to consider making the trip.
In Sioux Falls, the average price of gasoline is $3.25 per gallon, which is a little below the average cost. Car owners spend about $1,821 a year on full coverage car insurance.
North Dakota
Next up is North Dakota where the average price of a used car is $37,773. While car prices are high, insurance and gas might make up the difference a little.
If you live in Fargo, expect to spend around $3.20 per gallon of gas. Annual full coverage car insurance costs $1,319 on average.
Montana
Montana ranks the third worst state to buy a used car when it comes to price alone. But even the cost of gas and car insurance aren’t much below the national average.
The typical cost of a used car in The Treasure State is $38,943. In Helena, gas goes for $3.39 a gallon. The average yearly cost of full coverage car insurance is $1,770.
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Alaska
At $40,462 on average, used car prices in Alaska are no joke. But it’s not just the base price you have to consider. Gasoline and insurance are also pricey in the state.
A gallon of gasoline in Anchorage is $4.21, on average. This is the second-highest cost of gas on the list — just behind Washington. And if you want full coverage car insurance, expect to spend around $2,323 a year.
Wyoming
Wyoming is ranked the worst place to buy a used car with an average price tag of $41,405. Gas prices are also around the national average at $3.29 in Cheyenne. Full coverage insurance is $1,341, which might help offset costs — but likely not enough to justify getting a car in this state.
Things To Consider When Buying a Used Car
Of course, the base price is a major factor when shopping for a used car. But it’s not the only thing that matters.
When shopping around, consider the five-year cost of owning that vehicle as well. This is the total amount you’re likely to spend during the first five years of having that vehicle.
According to Kelley Blue Book, here’s what the five-year cost to own includes:
Out-of-pocket costs like fuel, maintenance, insurance, state fees and repairs
Vehicle’s purchase price and financing costs (if you take out a loan)
Depreciation or loss in value over time
Knowing the total out-of-pocket and ongoing costs of car ownership can help you make an informed decision about the vehicle you buy. Wherever you live, be sure to shop around before making the purchase to ensure you’re getting the best deal possible.
*All state gas prices came from Numbeo. All car insurance prices came from Forbes.
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This article originally appeared on GOBankingRates.com: 10 States With the Worst Prices for Used Cars
