2026 State-by-State Dealer Markup Report: Where to Find the Best Car Deals

18 min read

By Marcus Bell, Editor

Data last updated: April 2026

Dealer markups vary dramatically by state — and by brand, model, and even trim level. A Toyota 4Runner that carries a $3,000 markup in Los Angeles might sit at MSRP in Wichita. A Hyundai Ioniq 5 that sells below invoice in Ohio could have a $2,500 "market adjustment" sticker in New Jersey. The difference between the best deal and the worst deal on the same vehicle can easily exceed $5,000 depending on where you shop.

We built VINdow Sticker to make this information transparent. Our database tracks selling prices versus MSRP on every new Toyota, Lexus, Hyundai, and Cadillac in dealer inventory across all 50 states. This report distills that data into a practical guide: which states consistently offer the best pricing, which states to avoid, and how to use geographic arbitrage to save thousands on your next car purchase.

Methodology

VINdow Sticker collects dealer inventory data daily from every franchised Toyota, Lexus, Hyundai, and Cadillac dealership in the United States. For each vehicle, we record the factory MSRP (the window sticker price set by the manufacturer), the dealer's asking price, and any dealer-installed accessories (DIA) or market adjustments added to the price.

Markup is calculated as the difference between the dealer's asking price and the factory MSRP, expressed as both a dollar amount and a percentage. A negative number means the vehicle is priced below MSRP — a discount. A positive number means the dealer is charging above the manufacturer's suggested price.

For this report, we aggregated markup data by state, brand, and model. We excluded vehicles with incomplete pricing data and outliers that appeared to be data entry errors (e.g., vehicles listed at $1 or $1,000,000). The resulting dataset covers approximately 300,000 vehicles across more than 6,000 dealerships.

Key Findings

1. Geography Matters — But Model Matters More

The single biggest predictor of markup is not where you buy but what you buy. A Toyota 4Runner TRD Pro carries an average markup of +$4,200 nationally, and even in the most buyer-friendly states it rarely dips below +$2,000. Conversely, a Toyota Camry averages -$800 below MSRP nationally, and in competitive markets like Ohio and Texas, discounts reach -$1,500 or more.

That said, geography creates a consistent baseline shift. The same 4Runner TRD Pro that averages +$4,200 nationally averages +$2,800 in Kansas and +$6,100 in California. The state you shop in shifts the entire pricing curve up or down by roughly $1,000 to $3,000 depending on the vehicle.

2. The Midwest Advantage Is Real

States in the Midwest and Great Plains consistently rank among the cheapest places to buy a new car. Ohio, Indiana, Kansas, Nebraska, and Iowa all average below MSRP across the brands we track. The reasons are straightforward: high dealer density relative to population, lower operating costs for dealerships, and less concentrated demand for high-markup vehicles like full-size SUVs and trucks.

The Midwest advantage is strongest on mainstream vehicles — sedans, compact SUVs, and mid-size trucks. On specialty vehicles like the Lexus LX or Toyota Land Cruiser, Midwest dealers still mark up aggressively because demand outstrips supply regardless of location.

3. Coastal States Pay a Premium

California, New York, New Jersey, Hawaii, and Massachusetts consistently rank among the most expensive states to buy a new car. Higher dealer operating costs (real estate, labor, regulatory compliance) get passed to consumers. Dense populations with higher incomes create demand that supports markups. And in states with strict emissions regulations, inventory constraints on certain models further inflate pricing.

4. Brand Differences Are Significant

Toyota has the highest average markup because of a handful of high-demand models that skew the numbers. The 4Runner, Tacoma, and Land Cruiser together account for the majority of Toyota's above-MSRP pricing. Meanwhile, the Camry, Corolla, and RAV4 are widely discounted. Toyota's average markup is misleading if you are shopping for a sedan or mainstream SUV — it is inflated by the trucks and off-roaders.

Lexus is close to MSRP on average, with 85% of inventory priced below sticker. The brand's pricing discipline reflects adequate supply across most models. The exceptions are the LX 600 and GX, which still carry modest markups due to sustained demand for luxury body-on-frame SUVs.

Hyundai varies dramatically by model. The Ioniq 5 and Ioniq 6 EVs frequently sit below MSRP as EV supply has normalized. The Tucson and Santa Fe are competitive. But the Palisade — particularly the Calligraphy trim — still commands markups of $1,000 to $3,000 in many markets, driven by strong demand and limited allocation.

Cadillac is the most buyer-friendly brand we track, with 88% of inventory below MSRP and an average discount of over $1,000. GM's incentive programs and the competitive luxury market create consistent discounting. The CT5, XT4, and XT5 are routinely available at $2,000 to $4,000 below MSRP. The Escalade is the exception — it still carries markups in most states.

5. High-Demand Models Ignore State Trends

Some vehicles carry markups everywhere, regardless of state pricing trends. The Toyota Land Cruiser averages +$5,800 above MSRP nationally. The Toyota 4Runner TRD Pro averages +$4,200. The Cadillac Escalade V averages +$7,500. These vehicles have constrained supply and enthusiast demand that transcends geography.

If you are shopping for one of these models, state-level pricing differences still exist — but the savings from geographic arbitrage are smaller in both absolute and percentage terms. A $3,000 savings on a $70,000 vehicle is meaningful, but you will not find these models below MSRP in any state.

Best States for Car Buyers

These five states consistently offer the lowest markups across the brands we track. If you live in or near one of these states, you are already in an advantageous position. If you do not, these are the states worth considering for a fly-and-drive purchase.

Ohio: The Best State to Buy a Car

Ohio has the highest dealer density per capita of any major state. Columbus, Cleveland, and Cincinnati each have multiple competing dealerships for every brand, and the I-71 corridor between them creates a natural competitive zone where dealers price aggressively to draw customers from the next city up the highway.

Ohio's average markup of -$482 means the typical new car from the brands we track sells nearly $500 below MSRP. On high-inventory models like the Toyota Camry or Hyundai Tucson, discounts regularly exceed $1,000. Ohio is also a strong market for Cadillac, with XT4 and XT5 models averaging $2,500 to $3,500 below MSRP.

Indiana: The Crossroads Advantage

Indiana benefits from its central location and strong dealer competition along the Indianapolis metro area. Multiple large-volume dealerships in the Indy suburbs compete fiercely on price, particularly on Toyota and Hyundai models. The state's relatively low cost of doing business — affordable real estate, moderate labor costs — allows dealers to operate on thinner margins.

Kansas: Quiet Deals in the Plains

Kansas flies under the radar, but the Wichita and Kansas City metro areas produce consistently strong pricing. Dealer overhead is among the lowest in the country, and the population density does not support the kind of demand that drives markups in coastal metros. Toyota truck markups in Kansas average $1,200 less than the national average.

Nebraska: Omaha's Competitive Market

The Omaha metro area punches above its weight in dealer competition. Several high-volume dealerships along the I-80 corridor compete for customers from Nebraska, Iowa, and South Dakota, creating pricing pressure that benefits buyers. Nebraska is particularly strong for Hyundai deals, with Palisade markups averaging $800 less than the national figure.

Texas: Volume and Competition

Texas is the largest car market in the country by volume, and the sheer number of dealers creates natural price competition. The DFW metroplex alone has more than 20 Toyota dealerships, and Houston and San Antonio add dozens more. Texas is especially competitive on trucks — the Tacoma and Tundra carry notably lower markups here than the national average. Texas also has no state income tax, though its 6.25% sales tax rate is not particularly low.

Worst States for Car Buyers

These states consistently have the highest average markups. If you live here, it is especially worth shopping out of state or at least being aware of the premium you are paying relative to the rest of the country.

Hawaii: Island Pricing, Island Premiums

Hawaii is the most expensive state to buy a new car by a wide margin. Every vehicle sold in Hawaii must be shipped by ocean freight, adding $1,000 to $2,000 in logistics costs before any markup. Limited dealer competition — there are only a handful of dealerships per brand on each island — means consumers have few alternatives. Most Hawaii buyers pay full MSRP or more on virtually every model.

The data is stark: only 31% of Hawaii inventory is priced below MSRP, compared to the national average of 68%. If you are buying a car in Hawaii, budgeting for a markup is realistic, though shopping across islands and timing your purchase around end-of-quarter incentive periods can help.

California: High Demand, High Costs

California is the largest car market in the country and one of the most expensive. LA, the Bay Area, and San Diego all have affluent populations willing to pay premiums for popular models. Dealer operating costs are the highest in the nation — real estate, labor, regulatory compliance, and CARB emissions requirements all add overhead.

California's markup picture is nuanced, though. The state is so large that pricing varies significantly within it. Dealers in the Central Valley and Inland Empire tend to price more competitively than those in coastal metros. If you are willing to drive to Bakersfield or Riverside instead of shopping in Santa Monica, you can often shave $1,000 or more off the same vehicle.

New Jersey: Dense Market, Dense Markups

New Jersey's combination of high population density, high incomes, and proximity to New York City creates a market that supports above-average markups. The state also has unique dealer franchise laws that limit competition in certain ways. Toyota and Hyundai markups in New Jersey average 40% higher than the national figure.

New York: The Metro Premium

New York's average is heavily influenced by the NYC metro area and Long Island, where dealer overhead is enormous and demand is concentrated. Upstate New York, by contrast, prices more like the Midwest — dealers in Buffalo, Rochester, and Syracuse often price at or below MSRP. The state average obscures this divide. If you are in New York, shopping upstate is a legitimate strategy.

Massachusetts: Northeast Competition

Massachusetts rounds out the top five with an average markup of +$1,104. The Boston metro area drives most of this premium, with high incomes and limited dealer real estate creating a seller's market. The state's relatively small geographic footprint means there are fewer rural dealers offering competitive alternatives, though shopping in neighboring New Hampshire or Connecticut can yield better pricing.

How Markups Vary by Model and State

To illustrate how dramatically pricing shifts by geography, here is a breakdown of five popular models across high-markup and low-markup states.

Notice that the Cadillac XT5 is below MSRP everywhere — the difference between states is the size of the discount, not whether one exists. The Toyota 4Runner, by contrast, carries a markup in every state — but the Ohio buyer pays roughly $3,500 less than the California buyer for the same vehicle. That is the power of geographic shopping.

Regional Trends

Midwest (OH, IN, KS, NE, IA, MO, MN, WI)

The Midwest is the most buyer-friendly region in the country. High dealer density relative to population, low operating costs, and moderate demand create a pricing environment that favors consumers. The Midwest is particularly strong for SUV deals — the RAV4, Tucson, and XT5 all see their deepest discounts here. Truck pricing is competitive but not as extreme, since pickup demand remains robust throughout the region.

Southeast (FL, GA, AL, TN, SC, NC)

The Southeast is a mixed bag. Florida and Georgia have high volumes and reasonable competition, averaging slightly below the national markup figure. Alabama and Tennessee benefit from proximity to manufacturing plants (Toyota in Alabama, multiple OEMs in Tennessee) and tend to have good allocation. The Carolinas are moderately competitive. Overall, the Southeast is a neutral-to-slightly-favorable region for buyers.

Texas and the Southwest

Texas dominates this region with its sheer dealer volume. Arizona is moderately competitive on most models, though Phoenix-area dealers have caught on to the out-of-state buyer trend and price accordingly. New Mexico and Nevada tend to have higher markups due to lower dealer density. Texas is the clear winner in this region, especially for trucks, where the Tacoma and Tundra average $800 to $1,200 less than the national markup.

Pacific Northwest (WA, OR)

Washington and Oregon are moderately expensive. Seattle and Portland both have affluent, car-savvy populations that drive demand for popular models. Oregon's lack of sales tax attracts out-of-state buyers, which supports higher pre-tax pricing. Washington has been a notably strong market for hybrid and EV models, where markups on the RAV4 Prime and Prius have been persistent.

Northeast Corridor (NY, NJ, MA, CT, PA)

The most expensive region outside of Hawaii. High costs, high incomes, and limited dealer competition per capita create an environment where markups persist even when national inventory is healthy. The bright spots are Pennsylvania, which prices closer to the Midwest average, and upstate New York, which functions more like a Midwest market than a coastal one.

How to Use This Data

Cross-Shop Across State Lines

The most direct way to use state-level markup data is to expand your shopping radius. If you live in New Jersey and you are shopping for a Hyundai Tucson, the average markup in your state is $1,185 higher than in Ohio. That difference alone could justify a flight to Columbus and a drive home.

Use VINdow Sticker's inventory search to filter by state and see real-time pricing on every vehicle in our database. Sort by markup to find the best deals in any state, then compare against your local options.

The Fly-and-Drive Calculation

A fly-and-drive deal works when the savings on the vehicle exceed the cost of travel. Here is the math: a round-trip flight typically costs $150 to $400 depending on distance. You will need a one-way rental or rideshare to the dealership, roughly $30 to $80. Gas for the drive home varies by distance — budget $50 to $150 for a 500-mile drive.

Total travel cost: roughly $250 to $600. If the out-of-state deal saves you $1,500 or more, the fly-and-drive is clearly worth it. On a Toyota 4Runner where the California-to- Ohio spread is over $3,500, the economics are compelling. On a Camry where the spread might be $800, it is harder to justify unless the trip is short.

Dealer Transport as an Alternative

Some out-of-state dealers will arrange transport to your home for $500 to $1,200 depending on distance. This eliminates the need to fly and drive, but adds cost. It works best on higher-priced vehicles where the markup savings are large enough to absorb the shipping fee. Ask the dealer directly — many large-volume dealerships have established relationships with transport companies and can offer competitive rates.

Tips for Out-of-State Purchases

Sales Tax: You Pay Where You Live, Not Where You Buy

This is the most common misconception about out-of-state car purchases. In nearly every state, you owe sales tax based on your home state and county, not the state where the dealer is located. Most out-of-state dealers will collect your home state's sales tax at the time of purchase and remit it on your behalf. Some states have reciprocity agreements that simplify this process.

The practical implication: you do not save on sales tax by buying in a low-tax or no-tax state (like Oregon, Montana, or New Hampshire) unless you are also registering the vehicle there. If you live in California with its 7.25% base rate, you will pay California sales tax regardless of where you buy the car.

Registration and Title

When you buy out of state, the selling dealer will typically provide you with a temporary tag or transit permit valid for 30 to 90 days. You are responsible for registering the vehicle in your home state within that window. The process varies by state but generally involves visiting your local DMV with the title, bill of sale, and proof of insurance.

Some states require a state inspection or emissions test before registration. California, for example, requires a smog check on most vehicles. Make sure the vehicle you are buying meets your home state's requirements — particularly relevant for California buyers purchasing from states without CARB-compliant emissions standards.

Dealer Reluctance to Sell Out of State

Some dealers are reluctant to sell to out-of-state buyers. The reasons are practical: out- of-state deals require more paperwork, the dealer does not earn a service customer, and manufacturer allocation credits may be affected. Other dealers actively court out-of-state buyers because they want the volume.

How to handle it: be upfront about being an out-of-state buyer from the first contact. Ask explicitly whether the dealer sells to out-of-state customers and whether any fees apply. Some dealers charge a documentation or processing fee for out-of-state sales ($100 to $500), which is typically negotiable. If a dealer is resistant, move on — there are plenty who welcome the business.

Financing Considerations

If you are financing, secure pre-approval from your own bank or credit union before shopping out of state. This gives you a baseline rate and eliminates the complexity of dealer financing across state lines. Most dealers will accept outside financing without issue, though some may try harder to match or beat your rate to earn the finance reserve.

Warranty and Service

Manufacturer warranties are national — a Toyota bought in Kansas is covered by any Toyota dealer in California, and vice versa. The same applies to Lexus, Hyundai, and Cadillac. Buying out of state has no impact on your warranty coverage or your ability to get service at your local dealer. The only consideration is the first scheduled service appointment, which you should arrange with your local dealer shortly after purchase.

Watch for Hidden Markups: DIA and Add-Ons

Our state-level data captures the total asking price, which includes both explicit market adjustments and dealer-installed accessories (DIA). Some states and dealerships prefer to pad the price through accessories rather than a visible "market adjustment" line item. Common DIA items include paint protection film, nitrogen-filled tires, wheel locks, door edge guards, and VIN etching — often at significant markups over their actual cost.

California and Florida dealers are particularly aggressive with DIA. A Toyota dealer in Southern California might list a 4Runner at MSRP but add $2,500 in dealer-installed accessories that inflate the out-the-door price. VINdow Sticker breaks out DIA separately from the base markup so you can see exactly what you are paying for.

Pro tip: When comparing prices across states, always look at the total asking price including DIA, not just the base price or "market adjustment." A dealer advertising "no markup" but adding $1,500 in DIA is not giving you a better deal than a dealer with a $500 markup and no add-ons.

Timing Also Matters

State-level pricing trends are persistent but not static. Markups tend to compress at the end of each quarter (March, June, September, December) when dealers push to hit manufacturer volume bonuses. Year-end and model-year transitions (typically August through October) also create opportunities as dealers clear outgoing inventory.

For a deeper look at timing your purchase, see our guide on the best time to buy a new car. Combining geographic arbitrage with seasonal timing is the most effective strategy for minimizing what you pay.

How VINdow Sticker Helps You Find the Best Deal

This report provides a high-level view, but the real power is in the details. VINdow Sticker lets you search every vehicle in dealer inventory across the country with real-time pricing data.

• Filter by state: Use the inventory page to search for any model in any state and see exact pricing, markup, and days on lot for every vehicle.
• Compare across regions: Search the same model in multiple states to see firsthand how pricing differs. The markup column makes comparisons instant.
• Browse by model: Visit our models page to see pricing trends for every trim of every model we track.
• Spot aging inventory: Vehicles that have been on the lot for 30+ days are more likely to be negotiable. Sort by days on lot to find units where the dealer may be motivated to deal.
• Understand DIA: Our inventory listings break out dealer-installed accessories so you know exactly what is included in the asking price — and what to negotiate away.

The Bottom Line

Where you buy matters. The difference between the best state and the worst state for the same vehicle can exceed $5,000 — and on high-demand models, the gap is even wider. The Midwest and Texas offer the most consistently buyer-friendly pricing, while coastal states and Hawaii carry premiums that are difficult to avoid without expanding your search radius.

The best strategy combines geographic awareness with model-level research. Know what the national average markup is for the specific vehicle you want, then use VINdow Sticker to find the states and dealers where that vehicle is priced below average. If the savings justify the travel, buy out of state. If not, at least you know what a fair price looks like — and you can negotiate accordingly at your local dealer with data on your side.

Data note: All figures in this report are based on current dealer asking prices tracked by VINdow Sticker across approximately 300,000 vehicles from Toyota, Lexus, Hyundai, and Cadillac dealerships nationwide. Markup data is updated daily. Individual transactions may vary based on negotiation, incentives, and financing. Visit our inventory page for the most current data.