Paul Hanson was browsing for a used truck in 2023 with a specific checklist in mind: power locks and cruise control, but not too many bells and whistles. A gas engine. Enough towing capacity to pull his camper.  

By the time he narrowed his search online, he could find only three vehicles in the country that fit his criteria, none of which were near his hometown of Brayton, Iowa. He decided to go with a 2021 GMC Sierra Heavy Duty in Seattle, but shipping the car anywhere close would cost roughly $2,500.

But there was another option. Hanson calculated that booking a one-way flight and making a road trip out of the weekend would cost closer to $1,200, including a hotel stay, food and gas. It was an easy choice for Hanson, a fan of road trips.  

"I wanted, basically, a work truck with four doors," Hanson said. "I can go find a fully-loaded F-250, or I can find a fully-loaded any-sized truck, or any brand truck, closer to me, but I didn’t want that because they are astronomically more expensive.”

Picky shoppers and used car prices have pushed some buyers to look out of state for their next vehicle. Online marketplaces and shipping options have made car shopping across the country easier than ever, but experts warn buyers should take extra precautions if purchasing from another state. 

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Is it worth going out of state to buy a car?

Brian Moody, executive editor of online marketplace Autotrader and automotive research company Kelley Blue Book, said buying out-of-state makes sense for certain buyers, especially if they're looking for a specific vehicle. Moody had a Saab sedan shipped in from Maryland when he couldn’t find what he wanted nearby for his daughter.

“The car had 50,000 miles and it only had one owner, which to me made it feel like this car was worth getting even if it cost me an extra $1,200” to ship, Moody said.  

But “generally speaking, anyone who lives in a decent-sized town, unless you’re looking for something very specific, there’s going to be plenty of Honda Accords and Chevy pickups and Toyota minivans in your hometown."

Moody warned that buyers will need to take precautions if buying sight unseen. He suggested hiring a pre-purchase used car inspection service before buying.

“It’s really difficult to buy a car you haven’t seen in person,” he said. “You can look at everything on the car (online) and think, ‘This is great.’ And then it gets to you at home and you’re like, ‘Oh my gosh, it needs tires in the next six months.’"

A couple more things to consider if buying out of state: 

• Buyers will generally pay sales tax where the vehicle is registered, so there's no advantage to buying from a sales tax-free state.
• Drivers should obtain a temporary registration from the dealership before driving the vehicle home or, if buying from a private party, they should make sure they have all of the appropriate documents required by each state's motor vehicle department signed and dated before driving away.
• Drivers should also call their insurance company ahead of the purchase to sort out adding the car to their plan, according to Ivan Drury, director of insights at automotive research site Edmunds.

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What is the cheapest state to buy a used car in? 

Used car prices may have more shoppers looking across the country for deals. Prices have been settling as supply chain issues abate, with Cox Automotive data showing the average used vehicle listing at $25,721 as of December, down 3% from a year earlier, but affordability remains a challenge for consumers amid high interest rates.

A recent study from lending platform NetCredit ranked the states for used car prices based on 200,000 listings for popular models, taking into account variables such as mileage, the number of owners, transmission type and generation.  

According to their findings, the states offering the most affordable used cars include: 

• North Dakota
• New Jersey
• New York  
• Florida
• Utah

While the most expensive states include: 

• Alaska
• Hawaii
• Mississippi 
• Montana
• New Mexico

But for many models, shoppers can expect to find similar pricing across state lines, according to Drury.

"There can be variation, but most of it will be explained by, what's the trim level? What's the configuration that you're buying?" he said. "That's not to say there aren't deals to be found. But it does take more time and research than just saying, 'Hey, I'm going to go two states over, and they're all going to be cheaper.'"