The cheapest AND most expensive states to buy a used car

Drivers in Florida, Michigan and New Jersey are most likely save money buying used cars - but those off the mainland United States may be in for a crunch. 

A study by The Clunker Junker in late 2022 has revealed the cheapest and most expensive places to buy a used vehicle based on listings across the 200 most populous cities in the United States.

After analyzing 183,640 listings, it was determined Florida has the cheapest pre-owned cars in the nation at about 4.45 percent below the national average. 

The Sunshine State has received glowing marks in recent months for being a cheaper place to live - and is home to four cities out of the top ten in terms of move-in rate in 2022. 

New Jersey, Michigan, New York and Vermont rounded out the top five states for the cheapest used cars. 

Drivers in Florida, Michigan and New Jersey are likely to save money buying used cars - but those off the mainland United States made be in for a crunch

Jersey City - the Garden State's second most-populous city - is the cheapest area in America to buy used vehicles, with prices 9.08 percent below the national average.

The city is followed by two Florida locales - Hollywood and Miami - with Orlando, Fort Lauderdale and Tampa Bay all finishing in the top ten. 

Interestingly, four of the five states that showed the cheapest used prices were also where the Toyota Rav4 was not considered the most popular pre-owned vehicle.

Florida's most popular used car is the Toyota Corolla, according to iSeeCars. New Jersey's favorite is the Nissan Rogue, while New York and Michigan show the Chevrolet Equinox as most popular.   

The most expensive states in which to purchase a pre-owned car are perhaps not surprising, as they are the two non-mainland states in America in Alaska and Hawaii. 

Alaska's re-sale prices were, on average, about 10.69 percent above the national figures, with Hawaii at 7.7 percent.

In the mainland United States, New Mexico, Mississippi and Wyoming had the highest prices for used cars. 

The Alaskan city of Anchorage has the highest prices of any city, at 9.84 percent above the national average, followed by El Paso, Wichita, Albuquerque and Honolulu.

After analyzing 183,640 listings, it was determined Florida has the cheapest pre-owned cars in the nation at about 4.45 percent below the national average

Jersey City - the Garden State's second most-populous city - is the cheapest city in America in which to buy used vehicles with prices 9.08 percent below the national average

A study by The Clunker Junker in late 2022 has revealed the cheapest and most expensive places to buy a used vehicle based on listings across the 200 most populous cities in the United States

However, the numbers aren't necessarily cut and dry. While Alaska has a high price above the national average, there are 34 states in which used cars are less affordable, or take a higher percentage of your salary to buy.

Mississippi is the worst state in the union when it comes to this metric, as buyers need about 75 percent of their annual income to purchase a used car. West Virginia, Louisiana, Arkansas and South Dakota round out the 'bottom five.'

The state in which a used car is most affordable is New York, where it onlys cost 41.5 percent of your annual salary. New Jersey, Massachusetts, Connecticut and California round out that top five. 

Overall, the cost of used cars has risen a shocking 49 percent in the United States since June 2020.  

However, experts say that the worst increases are behind us, with the median price for a used vehicle dropping slightly toward the end of 2022, according to the Financial Times. 

While Alaska has a high price above the national average, there are 34 states in which used cars are less affordable, or take a higher percentage of your salary to buy

El Paso is the least affordable city for buying a used car

Analysts say the rise and now slight fall of the market is due to the supply chain crisis easing somewhat, especially in the production of semiconductor chips. 

The data comes as both cars big and small, ranging from the Toyota Camry to Mercedes Sprint van, are worth significantly more now than they were before the pandemic - and as smaller, cheaper to run cars become increasingly desired amid rising fuel costs.

Used cars are subsequently soaring in value, from pickups to vans, and even EVs.

Some secondhand models are worth 58 percent more now compared with just before Covid hit, after a global computer chip shortage delayed new car production and created long waiting lists.

Data published by online automotive research giant iSeeCars illustrates America’s love affair with trucks, and breaks down the most purchased used car models by state

Falling gas prices in December contributed to the slowing overall inflation rate 

Used vehicle prices dropped 2.5 percent from November to December, and were down 8.8 percent from one year ago. New cars and trucks dropped slightly on the month, but remained up 5.9 percent from a year ago.

Falling energy prices also helped tame inflation last month, with overall energy costs declining 4.5 percent from November. 

Regular gasoline dropped 2 percent on the month, and 12.8 percent from one year ago.

However, prices continued to increase in other key categories such as food and rent, though at a slower pace than earlier in 2022.