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

12 min read

By Marcus Bell, Editor

Every figure below is queried live from active dealer inventory and refreshes daily.

Dealer markups vary by state — and by brand, model, and even trim level. A Toyota 4Runner that carries a market adjustment in Los Angeles might sit at MSRP in Wichita. A Subaru Outback that is discounted four figures in Boise can be priced at sticker in Newark. The difference between the best deal and the worst deal on the same vehicle is real money, and it moves with geography.

We built VINdow Sticker to make this information transparent. Our database tracks selling prices versus MSRP across 18 brands in dealer inventory in 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 on your next car purchase.

Methodology

VINdow Sticker collects dealer inventory data daily from franchised dealerships across 18 brands 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 a dollar amount. 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.

Not every brand belongs in a cross-brand average. Three groups are excluded from every markup figure in this report, for different reasons. Acura carries no dealer asking price in our data at all. Honda and Hyundai carry one only on the listings we have read off the selling dealer's own website, a minority of their inventory. Some older Hyundai rows also still hold a price frozen from a feed that stopped publishing one. Ranking states on that subset would measure which dealers we have scraped, not which states price low. Ford, Kia, Jeep, Ram, Dodge and Chrysler publish a price that is MSRP less national incentives rather than a dealer asking price — it is structurally never above sticker, so blending it in manufactures a discount nobody negotiated. And Lincoln and Genesis show the mirror artifact, almost never landing below sticker. That leaves 7 brands whose asking price moves in both directions and can honestly be compared: GMC, Subaru, Buick, Chevrolet, Toyota, Cadillac, Lexus.

We also drop listings whose price is implausible against their own sticker (below 60% or above 200% of MSRP) — those are feed parsing errors, not deals. The resulting dataset for this report covers 899,124 priced listings.

Key Findings

1. Geography and Brand Move the Price About Equally

It is tempting to assume the badge matters more than the map. In our data the two effects are close to the same size. The spread between the cheapest and priciest brand average is $2,092; the spread between the cheapest and priciest state average is $2,567. Neither dominates, which is why shopping well means holding both variables in mind — the right car in the wrong state gives back most of what you gained.

Model-level variation sits on top of both, and it is larger still. A high-demand trim can run above sticker in a state whose overall average is a four-figure discount. That is a per-model question, and our per-model markup-by-state pages answer it for each vehicle individually rather than through a state average.

2. The Midwest and Plains Advantage Is Real

States in the Midwest and Great Plains consistently rank among the cheapest places to buy a new car. Nebraska (−$1,057), Wisconsin (−$1,099), Minnesota (−$845), Ohio (−$827) and Iowa (−$755) all average below MSRP and below the national figure of −$505. 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 Mountain West behaves the same way and currently sits at the top of the table outright. Idaho, Utah and North Dakota are thin-population, low-overhead markets where dealers price to move metal rather than to hold a line.

3. Coastal and Island States Pay a Premium

California (+$98), New York (−$124), New Jersey (+$42) and Hawaii (+$981) all fall far short of the national average discount of −$505, and Hawaii is in a category of its own. 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.

The pattern is not purely coastal, though — Nevada and Alaska price worse than most of the Northeast, for reasons that have more to do with dealer count and freight than with affluence.

4. Brand Differences Are Significant

Why three columns instead of one “% below MSRP”. A listing at exactly MSRP is not a discount, and for several brands that is where most of the inventory sits — quoting a single “at or below sticker” share would read as a discount story for a brand that mostly just lists at the sticker. The split keeps that distinction visible.

The two ends of the table behave very differently. The deepest average discounts come from brands where dealers genuinely advertise below sticker on a large share of inventory, while the brands clustered at exactly MSRP are running a list-price strategy — their average looks calm because almost nothing moves in either direction, not because every car is a deal. And the brand averaging above sticker is doing it on a genuine asking price, which is the one case where a cross-brand comparison is telling you something real.

The practical read: a brand average tells you what negotiating posture to expect, not what your car will cost. For that, start from the model pages, which carry the same figures per model and per state.

Cheapest States for Car Buyers

These five states currently have the lowest average asking price relative to MSRP across the brands in this report. If you live in or near one of them, you are already in an advantageous position. If you do not, these are the states worth considering for a fly-and-drive purchase.

What these markets have in common is not a region so much as a cost structure: cheap dealership real estate, modest local demand for the high-margin trucks and three-row SUVs that carry markups elsewhere, and enough competing stores that no single dealer can hold a price. That combination shows up in the Plains, the Upper Midwest and the Mountain West alike, and it is more durable than any one state's position in the table — the ordering shifts week to week, the reason it looks like this does not.

Priciest States for Car Buyers

These states currently have the highest average asking price relative to MSRP. 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 is the extreme case and the easiest to explain: every vehicle sold there arrives by ocean freight, adding four figures in logistics before any markup, and there are only a handful of dealerships per brand across the islands. Alaska carries a version of the same freight-and-competition problem. The dense Northeast and coastal California markets get there differently — high overhead and concentrated, affluent demand — but the buyer's experience is the same. In all of them, expanding your search radius is worth more than any negotiating tactic.

One caveat worth keeping: a state average hides enormous internal variation. Upstate New York prices more like the Midwest than like Long Island, and Central Valley California dealers price more competitively than coastal metros. Use the inventory search to look at actual listings rather than trusting your own state's headline number.

How Markups Vary by Model and State

State averages are the right tool for deciding where to look. They are the wrong tool for pricing a specific car. A model-by-state figure moves fast enough that any table printed here would be wrong within weeks — which is why we publish those numbers as live pages, one per model, rather than as a snapshot in this report:

• Toyota Camry markup by state
• Toyota 4Runner markup by state
• Lexus RX markup by state
• Cadillac XT5 markup by state
• Subaru Outback markup by state

Each of those ranks every state for that one model, updated daily, with the listing count behind each row so you can see when a state's figure rests on five cars instead of five hundred. That last part matters more than it sounds: a great many “model X is $4,000 cheaper in state Y” claims on the internet are a handful of listings wearing a trend's clothing.

Regional Trends

Midwest and Great Plains

The most consistently 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. Nearly every state from Ohio west to the Dakotas prices below the national average. Truck pricing is competitive but not extreme, since pickup demand remains robust throughout the region.

Mountain West

Currently the cheapest region outright. Idaho and Utah lead the national table, with the Dakotas close behind. These are low-overhead markets with small populations and, crucially, without the concentrated demand for high-markup vehicles that drives coastal pricing.

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

A mixed bag, and close to the national figure overall. South Carolina and Florida price at or better than the national average; Georgia, Alabama, Tennessee and North Carolina sit slightly the other side of it. Proximity to manufacturing plants helps allocation in Alabama and Tennessee without translating into a pricing advantage. Call the Southeast neutral: neither the bargain the Plains are, nor the premium the Northeast charges.

Texas and the Southwest

Texas dominates this region with its sheer dealer volume, and is the clear winner within it at −$844. Arizona is moderately competitive. New Mexico and Nevada have materially higher markups, driven by lower dealer density — Nevada is among the priciest states in the country, which surprises people who assume Las Vegas volume implies competition.

Pacific Northwest (WA, OR)

Oregon prices better than the national average at −$770; Washington is slightly worse at −$397. Seattle and Portland both have affluent, car-savvy populations that drive demand for popular models, but Oregon's lack of sales tax pulls in out-of-state shoppers and keeps its dealers competitive on the advertised number.

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

Among the most expensive regions in the country, though not uniformly. New Jersey and New York carry the premium you would expect from high costs, high incomes, and limited dealer competition per capita. The bright spots are Pennsylvania (−$518) and Connecticut (−$593), both of which price better than the national 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. The gap between the cheapest and priciest state in this report is $2,567 on the average car — and on an individual model the gap can be larger or smaller, which is the number you actually want before booking anything.

Use VINdow Sticker's inventory search to filter by state and see current 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. Check the actual spread on your model first: state averages move the baseline by hundreds, but a specific high-demand trim can swing by thousands, and that is where the trip pays for itself.

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 every other brand we track. 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 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.

This is why a dealer can advertise “no markup” truthfully and still quote you more than the sticker. A store might list a 4Runner at MSRP and add a package of dealer-installed accessories that inflates the out-the-door price by four figures. 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 current 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. Across the brands in this report, the gap between the cheapest and priciest state averages $2,567 on a typical car — and on high-demand models the gap is wider. The Plains, the Upper Midwest and the Mountain West offer the most consistently buyer-friendly pricing, while the dense coastal markets and the island and far-north states 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: Every figure in this report is queried live from current dealer asking prices and refreshes daily. Markup figures cover the 899,124 priced listings from the 7 brands whose feeds carry a comparable dealer asking price; the site-wide counts cover all 2,219,214 vehicles we track. Individual transactions may vary based on negotiation, incentives, and financing. Visit our inventory page for the most current data.