Just did some digging into cheapest cars by state and found some pretty interesting patterns. Turns out where you live makes a massive difference in what you actually pay for a vehicle.

So I looked at data from August 2023 comparing new and used car prices, dealer fees, and sales taxes across different states. The thing that surprised me most? It's not always the states with the lowest car prices that end up being the cheapest cars by state overall. Oregon came out on top, and the main reason is basically zero sales tax combined with ridiculously low dealer fees - we're talking $353 for both new and used cars. Montana and New Hampshire follow similar patterns, banking on no sales tax to offset higher vehicle prices.

What's wild is states like Alaska rank really high in affordability even though cars cost over 20% more there. The trade-off is their dealer fees are basically nothing - just $315. Meanwhile, Hawaii surprised me because cars there actually run 3.5% below the national average, which helped it crack the top five despite not having zero sales tax.

On the other end, you've got states like North Carolina and New Mexico where sales taxes are higher but dealer fees are reasonable enough to keep them competitive. Wisconsin made the cut too, though their dealer fees are the highest in the top 10 - still worth it compared to other states.

If you're looking for the cheapest cars by state, the pattern is clear: check both the sales tax situation and what dealers are charging. Some states compensate for higher car prices with better tax treatment, while others keep things affordable through lower dealer fees. Honestly, the difference between the most and least expensive states could easily be thousands of dollars on the same vehicle.