These Are the 10 Cheapest and Most Expensive States To Buy a Used Car

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After hitting record highs in recent years, used car prices are finally moving lower in much of the United States. The average used-car buyer paid $25,128 in January 2025, according to Kelley Blue Book. That’s 2% below what buyers paid in January 2024.

Depending on where you live, you could pay much less than the national average — or much more. Car buyers in the Midwest have the best chance of paying below average, while those in the West and South tend to pay more than average, according to a new study from NetCredit, a subsidiary of Enova International that provides consumer loans and lines of credit. 

For its study, NetCredit analyzed listings from Cars.com for 14 popular car models in 150 major cities. Researchers removed cars that were less than $1,000, had fewer than 50 miles, or didn’t have information about the engine, fuel or transmission. They then analyzed various algorithms and parameters to come up with a ranking of locations by the price premium of used cars compared with the national average.

Here’s a look at the 10 cheapest and most expensive states to buy a used car.

Also see the best and worst times to buy a used car.

Cheapest States To Buy a Car

Buyers of used cars will see the cheapest prices in North Dakota. East Coast states like New Jersey and New York also made the list.

Here are the top 10 cheapest states to buy a used car based on how much less they cost than the national average.

1. North Dakota: -7.73%
2. New Jersey: -6.02%  
3. New York: -4.73%  
4. Florida: -4.71%  
5. Utah: -3.45%
6. Michigan: -3.29%  
7. Ohio: -3.17%  
8. Kentucky: -2.79%  
9. Iowa: -1.34%  
10. Minnesota: -1.27%

Most Expensive States To Buy a Car

On the other side of the coin, these are the 10 most expensive states to buy a used car based on the same data.

1. Alaska: +9.70%
2. Hawaii: +9.26%
3. Mississippi: +8.64%
4. Montana: +7.95%
5. New Mexico: +6.22%
6. Wyoming: +4.36%
7. Louisiana: +3.77%
8. Oregon: +3.53%
9. Colorado: +3.28%
10. Delaware: +3.21%

Cheap and Expensive Cities

If you want to find the best used car prices in the country compared with the national average, head to Miami. It ranks first among major cities, with prices that are 7.97% below the national average. Other comparatively cheap cities are Fargo, North Dakota (7.73% below the national average); New York City (6.38% below); Hollywood, Florida (6.01% below); and Newark, New Jersey (5.92% below).

The place you might want to avoid buying a new car is Bakersfield, California. It ranked as the most expensive city for used cars, with prices that are 10.05% above the national average. Other pricey cities include Anchorage, Alaska (9.70% above the average); Honolulu, Hawaii (9.26% above); Jackson, Mississippi (8.64% above); and Killeen, Texas (8.26% above).

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