Here’s the Cheapest State to Buy a Toyota Tacoma
The Tacoma is becoming more expensive each year, so here's how to can reduce your overall purchase cost.
Key Points:
- Some states have lower sales tax and other fees that can reduce purchasing costs.
- Work out all details with the dealership before traveling out-of-state.
- Consider shipping your truck back to your home state.
If you’ve been eyeing up the new Tacoma, you might be wondering how to lower your costs. One way is to see if it’s cheaper to buy your truck somewhere else. For example, if you are near state lines, you may find a better deal by crossing the border. So, what is the cheapest state to buy a Toyota Tacoma?
The answer may surprise you. I will show you where to get a new Tacoma and explain why it’s cheaper in some states. I also break down whether you should or should not travel for your new Toyota truck.
Buying New
Sadly, you aren’t going to save any money on the truck itself by visiting another state. The Toyota Tacoma MSRP is set by the manufacturer, and that doesn’t change. What you can save on is the registration fees, taxes, destination charges, and other fees.
Based on those factors, New Hampshire is the cheapest state for buying a Toyota Tacoma. There are several reasons for this rating, but mainly because NH has no sales tax. Potentially, you can save thousands of dollars on this factor alone.
Yet, you must be careful about other local and city fees. Based on the purchase, you may also be responsible for document fees that the dealership charges.
(Sources: Compare.com, Edmunds.com)
Buying Used
If you would rather find a used Toyota Tacoma, there’s more flexibility with the price. Here are a few factors that change the price of used vehicles.
- Climate
- Fees, including taxes
- Demographics
- Popularity
Used truck prices fluctuate more from state to state than new vehicles do, since new vehicles are typically bound to an MSRP. That’s why it’s important to do your research.
For example, I looked at the 2020 Toyota Tacoma. Based on the information provided by Kelley Blue Book (KBB), the variations in price for this model don’t change much between states, however, there are some fluctuations.
Looking at the average listing price according to Kelly Blue Book, here are the four states with the lowest listing prices for a used Tacoma:
- Maryland
- Michigan
- New Hampshire
- Ohio
According to recent studies, three states tend to be the cheapest for used cars overall. These states include:
- Vermont
- New Hampshire
- Ohio
Interestingly, New Hampshire is on every list so far. Clearly, it’s one of the cheapest states to buy a car in.
(Sources: KBB.com, iSeeCars.com)
Other Cheap States
You might think that you can’t find a good deal on a Toyota Tacoma unless you live in one of the Atlantic states. That’s simply not the case.
In fact, there are some other cheap states I found during my research. While these aren’t going to have as low of fees as New Hampshire, you may also consider buying a Tacoma in the following:
- Alaska – no sales tax
- Oregon – sales tax is just 0.5%
If you plan to purchase a truck on a lot at a dealership in Alaska, you can save a lot of money. However, that savings would be quickly lost if you choose to have it delivered.
Is It Worth Going Out-Of-State?
It’s important to do all your research before buying a car in another state. In some states, you’ll still be required to pay the sales tax where you register the truck, not where you bought it.
Additionally, there will be expenses with traveling to another state. Don’t forget to factor in these possible expenses:
- Fuel
- Food on the road
- Possible hotel stay
- Time off of work
If you still decide it’s a good idea, make sure you work out all of the details with the dealership ahead of time. You don’t want to travel out of state only to find out that the truck isn’t ready for you.
After all, is said and done, you might find it’s still a good idea, especially if you live in a state adjacent. Otherwise, you may find that the travel time and expenses kill the deal.
(Source)
Shipping Considerations
Once you find the Toyota Tacoma you want to buy in another state, you’ll have to consider how you are getting it home. Some people choose to drive it home, which works well if you live near the state.
Otherwise, shipping would be your option. However, if you find an excellent deal, the shipping cost could consume all of your savings.
For example, expect to pay $2,700 to $3,200 to ship from New York City, NY, to Los Angeles, CA.
It’s also wise to consider these factors.
Pros of Shipping a Car:
- Convenient: You don’t need to figure out all of the logistics
- Safer: Prevents accidents, breakdowns, or encounters with bad weather
- Less wear and tear: You aren’t putting miles on your new truck
Cons of Shipping a Car:
- May take time: If the shipper is picking up other cars, you may be waiting
- Possible damage: If the company isn’t reputable, damage can occur to your vehicle
- Scams: A low rate may be just what’s needed to rip you off
With all of these factors at play, it may be better to buy a Toyota Tacoma at home.
(Source)
Conclusion
What are you going to do? Is it better to buy a new Tacoma at a local dealership, or do you want to save money by going elsewhere?
Either way, you are about to get behind the wheel of a reliable and stylish truck. The new Tacoma is worth every penny, especially if you choose one of the new appearance packages that accent all the right places.
It’s not the sales taxes that will kill you. It’s the dealer mark ups over MSRP for the Tacoma’s.