- Finding a used car can be a gamble.
But if you find the right one that's cheap,
low miles and in good condition,
oh boy, it's exhilarating.
When buying used, you've got to know what you're doing
or you can end up with a lemon on your hands.
There's gold in them there pre-owned hills.
And lucky for you, I've taken the time and done the research
to give you the treasure map
of which state has the best used cars.
Do you think you know the state with the best used cars?
The real answer might surprise you.
(dramatic music)
Before we get into it, you might be thinking,
what exactly do you mean by best used car Nolan?
Fair question, I will explain.
When talking about the best there are three main components
that we're gonna consider; cost, condition, and inventory.
So let's start with cost.
When talking about cost, there are three areas
of spending to consider.
The first is the initial price.
This is the bulk of the outdoor costs of your car.
We're talking about the number on the sticker,
or if you're savvy haggler,
the number that you negotiate down during a sale.
The initial price is going to be affected
by the age of the car, any existing damage,
popularity of the model, cost of living in the area,
and so many other factors.
Just like anything that you buy in a capitalist society,
that's just part of it.
The second part of the cost is the TT&L.
Taxes, title and licensing.
These fees will probably make up about eight to 10%
of the price of your car.
There are auto sales taxes, property taxes,
DMV fees, license and documentation fees,
title transfer fees, and sometimes admission
and inspection fees.
And as you can guess, every single one of these charges
varies from state to state.
So when it comes to cost,
TT&L is where geographical location
is really gonna start coming into play.
The third thing to consider
is the ongoing cost of the ownership.
This means insurance prices, maintenance,
gas price, et cetera.
It's a little obvious how location can affect
this aspect of the cost of your used car.
More heavily populated areas are typically
the more expensive places to own a car.
And the age and make of your vehicle will affect
the amount of money it takes for you to maintain it.
So how the heck do states stack up when it comes to
all these aspects of the cost of a used car.
As far as initial price is concerned,
Florida blows all 49 other states completely
out of the water.
As of 2016 on average, the initial price of used cars
in Florida, were a whopping 10% lower
than anywhere else in the country.
When I learned this, I thought that number
was so unbelievable, I almost demanded a recount.
(booing noises)
But it's true.
Here's why.
At 20.6% of residents over the age of 65,
Florida is the oldest state in the country.
When you get old you tend to stop driving,
which means you'll probably sell your car.
In addition to the senior citizen population,
Miami also touts wealthier residents
that cycle through their cars at a faster rate
than your average American middle-class, American Joe.
Average American middle-class, American Joe.
All around, people in Florida sell a lot of used cars,
making it the perfect buyers market.
Cost-wise New Hampshire also comes in close
to the top of the list for used car shopping.
It has some of the lowest fees in the country.
If you buy in New Hampshire, you won't be dropping thousands
on TT&L like you would elsewhere.
And get this in New Hampshire there is zero sales tax
on vehicle purchases.
Zero, that means you could be
saving up to 10% on your vehicle upfront.
It's one of only five states that don't
have this tax, along with Delaware, Oregon,
Montana and Alaska.
As of 2016 the one time fee added to the purchase
of a vehicle was only $25.
What sets New Hampshire apart
from these other taxless states
is the ongoing cost of ownership
that we're talking about.
The state has a very low cost of gas and insurance.
Premiums in New Hampshire average about $1,000 annually,
less than any other state,
and less than half of that of California.
Which brings me to the worst states for buying a used car,
when it comes to cost.
You might have guessed that the Golden State
is the most expensive to buy and own a used car in,
and you would be right.
For all its beautiful weather and diverse landscapes,
California is kind of a nightmare
when it comes to the cost of the car.
First off the cost of living and unemployment rates
in California are sky high compared
to the rest of the country.
This means that people are holding on to their cars
for a lot longer than residents of other states,
making the market scarce and competitive
for buyers looking for a sweet deal.
Plus, with its high population, California has almost double
the amount of registered drivers as any other state.
More shoppers, less used cars for sale,
and that means more competition for your dollar.
Beyond the initial price though,
California doesn't have the highest fees in the country.
The highest are in Alabama, Arizona, and Colorado,
but they are still pretty pricey
at around 1500 dollars on the low end.
Which reminds me I still need to register, my Chrysler.
What really puts the nail in California's cheapness coffin
is the overall cost of ownership including gas prices
and insurance premiums.
The other states without rageously high total cost
of ownership over a five year period are,
according to a study by insurance.com are,
Louisiana, Michigan, Oklahoma and Arkansas.
But surprisingly, there is only one other state
that has a higher cost in California,
and it's drumroll please.
(drumroll sound)
Wyoming.
This calculation is a combination
of many different factors including, road conditions,
average distance of travel, insurance.
So it's really a number of factors.
If I had to make a guess though,
I'd probably say it's all a bison attacks
in Wyoming as well, those things are vicious.
Now that we've covered initial cost.
Let's move on to the second determining factor
on what makes a state great to buy a used car in.
Its condition.
Now remember, we're talking about used cars here.
So most of these cars are gonna have
a good amount of normal wear and tear on them,
increasing with the mileage.
So when buying a used car, chances are high
that you'll encounter some bumper scratches
or a stain in the backseat
that you can only hope it's coffee.
I don't even wanna put a blacklight in my car.
Just, you know what, I'm not even gonna sell myself short.
My car is clean, okay, nothing weird has happened in there.
It's all good.
I don't even know why you brought it up.
What you really have to look out for
is the type of damage that will affect
your car's performance in the long run.
And that means any structural or frame damage,
you know, missing parts, large cracks, et cetera.
And when talking about geographical location
as it relates to damage, of course you think of terrain,
climate, and population that leads
to a higher chance of accidents.
So where in the country are used cars in good condition,
central and southern states have the perfect topography
and climate for cars to live well into old age.
Arizona, New Mexico, and Colorado
all have dry climates with minimal rainfall.
Most modern engines can handle the heat
in these states, and they face little
to no weather related damage.
One of the lesser known elements of auto damage
to consider is salt corrosion and auto rust.
This can affect states on both coasts as ocean air
can reach up to five miles inland
and cause rusting on coastal cars.
This type of rust is no match for the type
of rust that you'll find elsewhere, however.
Midwest people you know what I'm talking about.
There's a section of the country
that is adversely affected by this type of damage,
and it's called the salt belt.
You guys probably already know this,
but I've never lived in this area, so this was news to me.
The salt belt is a cluster of northeastern states
made up of Connecticut, Delaware, Illinois, Indiana,
Iowa, Kansas, Kentucky, Maine, Maryland,
Massachusetts, Michigan, Minnesota, Missouri,
Nebraska, New Hampshire, New Jersey, New York,
North Dakota, Ohio, Pennsylvania, Rhode Island, Vermont,
Virginia, West Virginia, Wisconsin, and Washington DC.
That's, I feel like I named all the states. (chuckling)
That's a lot of states.
Like, I know it's obvious that snowy and icy conditions
are awful for cars and trucks.
So in the salt belt, government trucks dump salt
on the road to lower the freezing point of ice
and also give some added traction.
This is for drivers in the moment, but over time,
the chemical compound causes rust in brake lines,
fuel tanks, struts, struts, struts, shocks,
and pretty much anything the salt can touch,
leading to corrosion that makes the car,
a less than desirable purchase.
Outside of the salt belt, another dangerous state
to buy a used car, is in Mississippi.
Why?
Because the Magnolia state has the highest concentration
of title washed cars.
We've gone over title washing in a previous episode
of WheelHouse and I'll drop a link if you wanna learn more.
But basically, it's taking a salvage title car,
moving it to a new state to register it under a clean title,
and it's very shady.
So what's the worst state for title washing.
According cars.com, the national average
is one in every 324.9 used cars
has had its title washed.
But in Mississippi, It's one in every 44.6.
That's a ton of used cars.
The second highest density of title washes is in New Jersey,
with one in every 87 cars, for comparison.
So why all the title washing in these states.
Well to put it simply, it's because of flooding.
Hurricane Katrina and Hurricane Sandy rip
through these states damaging hundreds of thousands of cars,
which caused title washing to surge about a decade ago.
It's estimated that there are approximately 800,000 cars
on the road in the US with salvage titles
that have been washed.
When in doubt, your best bet is to check the CARFAX
and steer clear of flood ravaged areas.
Unless you're building a race car because
you'll probably rip out all the damaged stuff anyway.
That's actually not a bad idea.
I think a salvage title neon SRT-4
is probably the, would be the dopest thing ever.
So sketchy. (chuckling)
The third factor to consider when choosing
where to buy your used car
is the variety of inventory in the state.
This is less a matter of good and bad,
it's more of a matter of what type of car
you're looking for.
Heavily populated states like California, Texas,
and New York will have a wider variety of vehicles
to choose from, purely because there's a wider variety
of people that live there.
Conversely, lower population states
will probably not leave you as much of a choice.
Good luck finding a Maserati in Idaho.
There's probably a few out there, I don't know.
For instance, if you're looking for a classic car,
your best bet is to stick to southern states
like Kentucky or South Carolina,
where vintage Americana is king.
Looking for more of a luxury model?
Well, Miami is a hotbed for your flashy used rides,
and Oregon has a great classic luxury car scene as well.
Surprisingly!
If you know exactly what make and model you're looking for,
research where that car is made.
If you buy from a state where it's manufactured,
you'll see an increase in availability
and a steep drop in price.
Now that we've covered cost, condition, and inventory,
we're just about ready to determine the best
and worst states to buy a used car in.
Which states are you thinking?
Alaska, Delaware, you must be kidding.
Before we reveal though,
there's just one more thing to consider
as you embark on your fruitful used car journey.
Fleet vehicles.
A fleet vehicle is a vehicle that was leased
by a business or organization rather than an individual.
More often than not, these are also rental cars.
If the car you're considering was a fleet vehicle,
it'll be significantly harder to determine
the condition of said vehicle.
Some people think that rental cars are driven
with reckless abandon.
While others think that people drive them more carefully.
And there's actually not a ton of data
to suggest either way.
But if you're buying a used rental car,
several other people have driven it,
and the chances of irresponsible driving
is exponentially higher than with a non-fleet car.
But non-fleet cars are not subjected
to regular inspection and mandatory maintenance
that rental companies put in place.
That's just something to keep in mind.
So which state is the best?
It's finally at time with all factors considered
and all research conducted,
I've decided that there needs to be a tie for first place.
The Venn diagram of used car buying optimization
intersected most in Florida, and New Hampshire.
With both states hitting it out of the park
with initial price.
Florida had a slight edge from not being part
of the salt belt, and New Hampshire's low TT&L fees
brought it home for the Granite State.
And which is the worst.
It might be one of the best states to drive and shop in,
but California is among the worst to buy a used car in.
With a harsh market for buyers
and a huge cost of ownership,
the used car buying experience is difficult
and more pricey in beautiful California.
And Mississippi, we love you but you also
get a dishonorable mention for the oversaturation
of title washed cars.
Look I know a lot of you probably aren't able
to go out of state to buy a used car,
I probably wouldn't actually either.
So, do your research, know what you're getting into.
Don't be impulsive.
Make sure you're buying a good car,
not just a cheap car.
And you can do that, with help from us by watching
our episode of money pit on the subject,
and just buying a cord.(chuckling)
We put out a video almost every day.
So if you don't wanna miss that,
please subscribe to the channel.
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Check out our podcast, Past Gas.
We put a lot of work into that,
and I think you'll enjoy it as well.
Follow Donut on all social media, at Donut Media.
Follow me @nolanjsykes.
Be kind.
I'll see you next time.