Why You Should Buy a Car From Another State and Ship It Home

The used car market is in flux, and prices vary widely depending on where you are in the U.S. With factors like local demand, state taxes, and supply chain issues affecting costs, it’s clear that geography matters more than ever when buying a car. However, there’s a smarter way to navigate this uneven landscape: buy from the cheapest locations and ship the car to your doorstep. This strategy could save you thousands, provide more options, and ultimately get you a better vehicle—all without compromising on quality.

Prices for used cars differ dramatically from one state to another. For example, Alaska is the most expensive state for used cars, with prices 10.69% higher than the national average. Meanwhile, Florida offers the cheapest cars, priced about 4.45% lower than the national average. Similarly, Jersey City boasts the lowest prices among U.S. cities, with vehicles listed at 9.08% below the national average. On the flip side, places like El Paso, TX, see cars priced at 8.85% above average[^1].

Such disparities are driven by a variety of factors, including local demand, supply, transportation issues, and state taxes. If you’re in a high-cost area like Alaska or Hawaii, where freight costs drive up the price of everything from milk to motor vehicles, you could save big by buying a car from a more affordable state like Florida or Michigan.

Beyond location, timing plays a crucial role. The price of a used car has risen by 49% in the U.S. since June 2020 due to factors like supply chain disruptions, particularly the semiconductor shortage, and increased demand during the pandemic. However, there’s good news: the tide is turning. With supply chains easing and interest rates climbing, there are now more cars on the market and fewer buyers looking to finance a purchase. For savvy shoppers, this means more negotiating power.

For example, Cars.com reported that the median price of a used vehicle dropped by more than 3% in October 2022 compared to the previous year[^2]. This shift in supply and demand means now is a great time to buy—if you know where to look.

Instead of paying inflated local prices, why not buy a car from a cheaper market and have it shipped to you? The idea might sound complicated or costly, but the numbers often tell a different story.

Take the example of New Mexico versus Arizona. Despite Arizona having higher sales taxes, used car prices in New Mexico are considerably steeper. Simply crossing state lines could save buyers hundreds or even thousands of dollars. Similarly, even though Texas’ average used car prices are just 1.12% above the national average, cities like El Paso are much more expensive than other parts of the state[^3].

By using a service like Vship, which connects car buyers directly with carriers to ship vehicles, you can eliminate the hassle and extra costs associated with brokers and middlemen. This allows you to take advantage of price differences across states while avoiding the hidden fees and inflated costs that typically come with traditional car shipping services.

To find the best deals, you need to look beyond just the price tags. Focus on states and cities with lower-than-average prices, like Florida or Michigan, and avoid high-cost areas like Alaska or Hawaii. Also, pay attention to local wages and the affordability index. For example, while Mississippi’s used car prices are only 5.88% above the national average, the lower local wages make it the least affordable state to buy a car[^4].

Using tools like Cars.com and The Clunker Junker’s analysis can help you identify which markets offer the most competitive pricing for the type of car you want. When comparing prices, consider the total cost of ownership, including local taxes, registration fees, and any additional expenses related to shipping the car home.

Once you've pinpointed where to buy, the next step is to arrange for shipping. Contrary to popular belief, shipping a car can be surprisingly affordable, especially when you consider the savings you’re making by purchasing in a lower-cost market. And when you use a direct service like Vship, which eliminates the middleman, you save even more.

By connecting directly with a carrier, you’re cutting out the broker’s fees, which can range from a few hundred to a few thousand dollars. Plus, you have the opportunity to negotiate directly with the carrier, giving you greater control over pricing, timelines, and service quality.

Another smart move when buying a car from afar is to arrange a Pre-Purchase Inspection (PPI) by an independent mechanic. This step ensures you know exactly what you’re buying before you commit. An independent mechanic can check for any hidden issues or potential problems that the seller might not disclose, giving you peace of mind and confidence in your purchase.

Arranging a PPI is easy and relatively inexpensive. Most mechanics will be happy to perform an inspection, provide a detailed report, and even discuss the findings over the phone or by email. This is a small investment compared to the cost of buying a car that turns out to be a lemon.

Consider a buyer in Anchorage, Alaska, looking for a used Honda Civic. Local prices are more than 10% above the national average due to high freight costs. Instead of paying a premium, they find a similar car in Jersey City, NJ, where prices are 9% below the national average. By purchasing in Jersey City and shipping the car via Vship, they save hundreds—even after accounting for shipping costs. They also avoid the hidden costs associated with brokers and middlemen, thanks to Vship’s direct-to-carrier service model[^1].

Or take the example of a buyer in El Paso, TX, one of the most expensive cities for used cars in the state. Instead of settling for inflated local prices, they purchase a car from Santa Ana, CA—one of the cheapest cities for used vehicles despite California’s slightly higher-than-average prices. Shipping the car directly to Texas allows them to save significantly compared to buying locally[^3].

As electric vehicles (EVs) become more mainstream, the used car market is seeing an influx of second-hand EVs. While these vehicles offer lower operating costs and environmental benefits, buying one locally may not always be the best option—especially if you live in a state or city where charging infrastructure is limited or expensive.

For example, a buyer in a rural area with few charging stations might find it more advantageous to buy a used EV in a city with a well-developed charging network. As used EVs flood the market, geographic considerations will become increasingly important, making the strategy of buying from afar and shipping home even more compelling[^5].

The uneven landscape of used car prices across the U.S. presents a unique opportunity for savvy buyers. By purchasing from states and cities where prices are lower, and leveraging affordable shipping options like Vship, you can save money, get more choices, and ultimately drive away with a better deal.

Don't let local prices dictate your options. With a bit of research, a trusted shipping partner, and a strategic approach, you can turn the complexities of the market into an advantage. Buy smart, ship smart, and get the car you want—without paying a penny more than necessary.

[^1]: "The Cheapest and Most Affordable Cities for Used Car Shopping." The Clunker Junker. Link. [^2]: Financial Times, "Used car prices fall as demand eases," October 2022. Link. [^3]: "The Cheapest and Most Affordable Cities for Used Car Shopping." The Clunker Junker. Link. [^4]: Bureau of Labor Statistics, "Occupational Employment and Wage Statistics." Link. [^5]: "The Cheapest and Most Affordable Cities for Used Car Shopping." The Clunker Junker. Link.