Where is the best state to buy a truck?

In today’s blog post, we will answer the following question: Where is the best state to buy a truck? We will review the sale tax and conditions in each state. We will also discuss what factors can reduce the final price of a truck. 

Where is the best state to buy a truck?

Some of the best states to buy a truck are those with no sales tax. These states are:

  • Alaska
  • Delaware
  • Montana
  • New Hampshire
  • Oregon.

Of course, worth mentioning the following states with a low sales tax on vehicles:

  • North Carolina
  • Missouri
  • Wisconsin
  • Ohio
  • Virginia
  • Florida. 

What is the sales tax on trucks in the US?

As you will see in the table below, the sale tax on vehicles varies considerably by state:

StateSales Tax
Alabama2.00%
Alaska0.00%
Arizona5.60%
Arkansas6.50%
California7.25%
Colorado2.90%
Connecticut6.35%
Delaware0.00%
Florida6.00%
Georgia6.60%
Hawaii4.00%
Idaho6.00%
Illinois6.25%
Indiana7.00%
Iowa5.00%
Kansas7.50%
Kentucky6.00%
Louisiana4.00%
Maine5.50%
Maryland6.00%
Massachusetts6.25%
Michigan6.00%
Minnesota6.50%
Mississippi5.00%
Missouri4.23%
Montana0.00%
Nebraska5.50%
Nevada8.25%
New Hampshire0.00%
New Jersey6.63%
New Mexico4.00%
New York4.00%
North Carolina3.00%
North Dakota5.00%
Ohio5.75%
Oklahoma3.25%
Oregon0.00%
Pennsylvania6.00%
Rhode Island7.00%
South Carolina5.00%
South Dakota4.00%
Tennessee7.00%
Texas6.25%
Utah6.85%
Vermont6.00%
Virginia4.15%
Washington6.50%
West Virginia6.00%
Wisconsin5.00%
Wyoming6.00%

A summary of the costs when buying a truck

The price of the vehicle is not the only thing you have to add to your budget list when buying a new (or used) truck. There are several other costs to take into consideration:

  • The registration fee. Your state will charge you a certain amount to register the vehicle in your name. Some states have a flat rate, while others base the rate on the weight, age, or value of the vehicle. And don’t delay! Many states charge additional fees for late enrollment.
  • The tuition fee. The cost of tuition can be included in the registration or billed separately.
  • Insurance costs. The average cost of insurance can vary greatly on the qualifying factors, such as your own age, driving history, and insurance status. 
  • The title transfer fee. This is a legal document that gives proof of who owns a vehicle.
  • The line recording fee. If you have a lien on the car (also known as a loan), the DMV can charge you for recording that lien on the title.
  • The documentation fee. Car dealers generally charge their own fees to do all the vehicle purchase paperwork. Some states put a cap on these fees.
  • The sales tax. Most states collect taxes on vehicle sales. See the tax rate by state in the table above, although your city or county government may also add its own sales tax.
  • The personal property tax. Some states require you to pay an annual tax on the value of your vehicle. 
  • The emission/inspection fees. States generally require a vehicle to be inspected when you buy it and may require emissions testing as well.

Factors that can reduce the final price of the truck

Essentially, there are certain factors that reduce the net sales price on which your tax is calculated. For example, if you trade in a vehicle, the trade-in allowance is subtracted from the agreed price in some states. Therefore, when negotiating your deal, it is better to have the car’s value as a trade-in factor rather than selling it separately, in which case the allowance does not apply.

Let’s say the dealer offers you a $ 5,000 trade-in allowance on a $ 20,000 vehicle and you participate in a $ 1,000 cashback offer. Next, the formula for calculating the sales tax base is $ 20,000 minus the $ 5,000 and $ 1,000 deductions, which equals $ 14,000. Now, multiply $ 14,000 by the 6 per cent tax rate, and the total sales tax is $ 840. By reducing the tax base, you save $ 360 in sales tax.

Additional costs that you should take into consideration when buying a truck

As we have explained above, in addition to the sales tax, you must also pay the vehicle registration and license fees. When purchasing a car through a dealer, you pay these fees directly to the dealer as part of the sales agreement, and the dealership processes the documentation. Instead, in a private sale, you file these documents at the local vehicle tax office and pay the taxes, title, and registration fees at that time.

Note: If what we are going to acquire is a used vehicle, it will not be necessary to pay the registration tax, because it will have already been paid at the time of the first registration of the vehicle! but we will have to pay the following taxes:

So what can I do to pay less tax when buying a truck?

In conclusion, taxes also count when buying a truck, being an important component of the price we pay as consumers. Where there is more scope for action is in the registration tax, given that vehicles with fewer emissions or because of our buyer profile, we can scratch a few euros.

With VAT, little can be done, except to negotiate the best possible price to receive a less fiscal impact for the purchase. In the registration tax, there is also little margin, since for a single-vehicle the minimum saving for the fee does not compensate for the hassle of searching and paying in a town hall where the amount is lower than the average.

3 tips to save money while buying a truck

Buying a truck at a good price is not an impossible mission as you might think, you just have to be clear about the model we are looking for, the use we want to give it and above all, know the depreciation suffered by the vehicles.

For example, we can tell you that, on average, cars of any type lose 27 per cent of their value in the first year after purchase and after three years on the street, their value drops by half.

In this way, we could tell you that the most basic model of the Ford F-150, which new costs 28 thousand dollars, by 2021 could be around 14 or 15 thousand dollars thanks to the depreciation and if we add the user to that, we can anticipate that you will get it even cheaper.

So here are three tips to get a good pick up at a good price:

  1. One of the situations that we suggest the most to all those who want a used car, is that they preferably verify that it has Electronic Stability Control (ESC or ESP), which is mandatory since 2012 and has saved thousands of lives. Models prior to that time may or may not have it, so we suggest you look for them.
  1. Fancy models that are known for their durability, this is obvious because you will be buying a vehicle with several miles on the engine and of course years of use that could be rough.
  1.  Search in your local market, although you can also search in other nearby markets through several specialized pages, only then will you be able to compare prices. Take into account that not all regions of the country give the same use to this type of vehicle.

Final thoughts

Make sure you know how much taxes you have to pay in your state, before buying a vehicle. And keep in mind the additional fees – these can rarely be waived! Otherwise, read carefully our tips on how to get the best deal and how to reduce the final cost of a new purchase.

If you have any questions or comments on the content, do not hesitate to let us know!

FAQ on Where is the best state to buy a truck?

Should I buy a truck?

You should buy a truck because they have all the amenities for passengers to travel comfortably. In addition, the rear box allows a greater load capacity than any trunk. On the other hand, the trucks are equipped to provide superior driving experiences. Upholstery, air conditioning, connectivity and much more.

Why are trucks with high mileage so expensive?

Trucks with high mileage are expensive, first of all, because of the idea they represent. Pick-uk trucks are uniquely American and have been the best-selling vehicle type for decades. 

What is better to buy a car or a truck?

If it is better to buy a car or a truck will depend on your needs and lifestyle. A car being smaller is less heavy and having a body closer to the ground offers greater stability. On the other hand, a truck is larger, it is heavier and the height of the chassis to the ground is greater which translates into less stability.

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