As we enter 2025, the car market continues to stabilize after a few years of uncertainty caused by global events, semiconductor shortages, and fluctuating demand. While new and used car prices have shown signs of leveling out, the high costs from the previous years still linger. With prices remaining higher than pre-pandemic levels, many prospective car buyers are now considering whether buying a car out of state could save them money. But should you take the plunge and look beyond your state’s borders for a deal, or will the additional costs and complexities make it not worth the effort? Let’s explore the pros and cons of buying a car out of state in 2025 and how auto transport can factor into your decision.
New and Used Car Prices: A Snapshot of 2025
The average price of a new car in the U.S. in 2025 is still hovering around $48,000, with some segments like electric vehicles and luxury trucks continuing to drive up prices. On the used car side, prices have slightly decreased from their peak but are still averaging around $34,500, offering some relief for buyers who are looking to save money by purchasing pre-owned vehicles.
However, prices for both new and used cars can vary significantly depending on where you are located. Some states offer lower prices on used cars due to differences in demand, regional economic factors, and local taxes. The disparity between state car prices is why many buyers are considering auto transport as an option to get their ideal car from another region without breaking the bank.
The Pros of Buying a Car Out of State
1. Potential for Significant Savings
One of the most compelling reasons to purchase a car out of state is the opportunity to save money. Differences in supply and demand, regional taxes, and local car market conditions can result in significant savings when buying in certain states. For example, states like Oregon and Delaware have no state sales tax, which can save you hundreds or even thousands of dollars compared to states with high sales tax rates. Lower registration fees or other local fees may also contribute to cost savings when buying out of state.
Additionally, prices in regions with lower demand or lower living costs can also be less expensive. By using auto transport services to bring the car home, you might find that the savings are substantial enough to offset the cost of shipping.
2. Wider Selection and Better Deals
Buying a car out of state opens up a broader selection, especially if you’re looking for a specific model, trim, or a rare car. Some vehicles may simply be more abundant or affordable in other parts of the country due to local preferences or market conditions. For instance, a certain type of car might be more in demand in larger metropolitan areas, driving up local prices, while the same model could be priced lower in smaller towns or less populated regions.
The availability of rare models or even classic cars can be a great reason to expand your search beyond state lines. And with car shipping, you can get the car delivered to your location without the hassle of driving it home yourself.
3. Lower Insurance Premiums
In addition to saving on the purchase price, buying a car out of state may allow you to take advantage of lower insurance premiums. Different states and regions have varying insurance rates based on local laws, traffic conditions, and accident statistics. If you buy a car from a state with lower insurance rates, you might enjoy a reduction in your monthly premiums once you register the vehicle.
The Cons of Buying a Car Out of State
1. Logistical Challenges and Shipping Costs
While the idea of saving money by purchasing a car out of state is appealing, it’s important to consider the logistics involved. One of the biggest challenges is arranging for auto transport or car shipping. Shipping a car across the country can cost anywhere from $600 to $1,500 or more, depending on the distance and the type of service you choose. For example, transporting a vehicle from New York to California can cost well over $1,000, which could significantly cut into any savings you make from the purchase price.
While you could drive the car back yourself, you would be adding miles to the vehicle’s odometer, which could reduce its resale value. You’d also need to factor in the cost of fuel, food, lodging, and time spent traveling, making it potentially less economical than simply buying locally.
2. State-Specific Regulations and Fees
Every state has different regulations for registering a vehicle, including emissions tests, vehicle inspections, and sales tax. When buying a car out of state, you may have to pay the sales tax in your home state, not the state where you bought the car, which can add additional costs.
If the car is from another state, you might also need to arrange for a special inspection, such as a smog check, before registering the car in your state. Some states may have stricter environmental laws, and meeting these requirements could add further costs or delays.
3. Risk of Buying Sight Unseen
Buying a car out of state, especially without physically inspecting it, is always risky. Even with detailed photos and descriptions, there could be hidden issues with the vehicle that aren’t apparent online. This is particularly true for used cars, which may have cosmetic damage or mechanical issues that aren’t immediately visible in photographs.
To mitigate this risk, always get a full vehicle history report and, if possible, have the car inspected by a trusted mechanic before finalizing the deal. If you’re unable to inspect the car yourself, hiring a third-party inspector could give you peace of mind.
Other Considerations
Inspection and Paperwork
Whether you’re buying locally or out of state, it’s essential to ensure the car’s condition and paperwork are in order. This includes checking the car’s title, ensuring there are no liens, and confirming that the car hasn’t been in any major accidents. For out-of-state buyers, getting an independent inspection from a mechanic is highly recommended.
Shipping and Insurance
Before buying a car out of state, make sure you arrange for auto transport and car insurance. Shipping a car across the country requires careful planning, and choosing a reputable car shipping company is crucial to ensure the vehicle arrives in good condition. Additionally, you will need to arrange insurance for the vehicle before it’s transported to your location.
Conclusion: Should You Buy a Car Out of State in 2025?
Buying a car out of state in 2025 can be a great way to find better deals and access a wider selection of vehicles. For those willing to navigate the logistical challenges, including auto transport or car shipping, significant savings can be achieved—especially when purchasing in states with no sales tax or lower vehicle prices. However, buyers should be mindful of additional costs, such as transportation, registration, and possible inspection requirements, which could offset the initial savings.
Before deciding whether to buy a car out of state, do your research, consider the shipping costs, and make sure the vehicle is thoroughly inspected. If done carefully, purchasing a car from out of state could be an excellent opportunity to save money and find the perfect vehicle.