DENVER (KDVR) — If you’re looking for a new or used car, you might start looking at dealerships outside of Colorado for the perfect deal.
Local dealerships may not have exactly the car you want, or the price you see here could scare you off.
Is it smarter to shop around for a vehicle out-of-state, or are you better off staying here?
There are states with cheaper car prices, but you might have to look around
Colorado ranked No. 35 on a list of average used vehicle prices by state compiled by iSeeCars.
According to iSeeCars, the average price for a used car in Colorado was $35,269. That was $1,687 higher than the national average of $33,582.
Only 15 other states had higher average prices.
Of the six states that border Colorado, half had a lower average price for cars, but even that was not by much.
In Utah, the average price was $34,580, which was $689 lower than in Colorado. In Nebraska, the price was $205 lower, and in New Mexico, the average price was only $80 lower.
Oklahoma and Wyoming had higher average prices. iSeeCars deemed Wyoming to have the highest average car price among all the states at $41,405, which is $6,136 higher than Colorado.
Most of the states with the lowest used car prices are on the east coast, including Vermont, the state with the cheapest average price of $31,445 (which is $3,824 cheaper than Colorado).
Even if you do find a slightly lower price out of state, you may still need to consider the price of registering your car in Colorado.
Registering your out-of-state car in Colorado
When you register your out-of-state car in Colorado, you are required to pay sales tax for that vehicle.
For example, if you live in the City and County of Denver, you would be required to pay the 2.9% Colorado state tax, the 1.1% RTD tax and the 4.81% Denver city tax – a total of 8.81%.
But if a vehicle is bought out-of-state, that state may also impose a sales tax as well.
That does not mean you will be taxed twice. According to the Colorado Department of Revenue, if you paid sales tax in another state, you are allowed a credit against what you paid in another state.
You will also have to title your vehicle in Colorado, verify the VIN of the vehicle and get an emissions test done. VIN verification can be done at a licensed emissions testing station.
Some of the fees you have to pay for out-of-state vehicles are the same as those paid for registering vehicles bought in Colorado.
However, depending on the vehicle and where you bought it, the money you may have saved could be wiped out by the time you receive your Colorado license plate in the mail.