What is The Cheapest City in Alabama to Buy a Car

What is the cheapest city in Alabama to buy a car? Buying a new car can be quite an investment, and because of this, you want to make sure you’re getting the best deal possible.

Whether you’re buying from a dealership or directly from the car manufacturer, it can be hard to know whether or not you’re getting the best price without doing some research first.

Of course, doing that research takes time and money, so how can you cut out that middleman step?

In this article, we’ll cover the cheapest city in Alabama to buy a car so that you can save yourself time and money when making your purchase.

Top 10 Cheapest City in Alabama to Buy a Car

When it comes to buying a car, most people are looking for ways to save money, whether that means haggling on an existing price or negotiating with dealerships for new cars.

No matter where you shop, there are bargains to be found. According to data from Kelley Blue Book, however, some cities are better than others at offering cheap deals for car buyers.

Of course, where you live will have an impact on your pricing results; factors like taxes and licensing costs vary from state to state and even city to city.

For example, folks who buy cars in New York State can expect their purchase price alone (excluding sales tax) will run upwards of $35K while those shopping in Michigan could spend less than $20K.

Here are the 10 cheapest cities to buy a car in Alabama:

1. Huntsville, Alabama

You don’t have to live in Alabama’s biggest city (by population) to find inexpensive vehicles. With an average of 28 dealers per 1,000 square miles and an average price tag of just $15,688, Huntsville easily tops our list of cheapest cities.

In fact, it’s not just cheap compared with other Alabama cities; it has one of the lowest prices overall.

Plus, as a tech hub for northern Alabama and beyond, there are plenty of companies hiring here, and employees get good paychecks that go further than you might think.

2. Birmingham, Alabama

Buying your first car can be an exciting time, but for many, it’s also stressful. If you live in Birmingham, however, you don’t have as much to worry about, the city boasts cheap car insurance and low taxes that keep auto costs down.

In fact, it’s currently one of only two cities in Alabama where new cars under $10K can get you discounts on car insurance.

So if you live here or are just visiting and thinking of buying a car, here are some things to know the average cost of car insurance in Birmingham is $1,078 per year.

That means even if you drive a luxury vehicle worth more than $100K, you could still save money by shopping around. Why?

Because rates vary from company to company (and person to person) based on how safe they think you are behind the wheel.

And since there aren’t any state-mandated minimum coverage requirements, companies will reward those who take steps to protect themselves with lower premiums.

3. Mobile, Alabama

Alabama’s Department of Revenue released data recently showing what Alabama cities and counties have some of the highest and lowest ad valorem tax rates across each county.

Looking at Mobile County specifically, local taxes are 0.517 percent on average, while statewide that rate is 0.521 percent.

Put another way, that means someone who pays $10,000 in annual property taxes would pay about $105 per year if they lived in Mobile County instead of elsewhere in Alabama.

That same person paying $10,000 in property taxes in Birmingham would pay about $150 more per year than their Mobile-County counterpart.

That makes Mobile one of Alabama’s cheapest places to buy a car, and it might be worth considering when you’re ready to buy your next vehicle.

4. Montgomery, Alabama

In Alabama, Montgomery has been named one of the cheapest places to buy cars and it’s also one of America’s least expensive cities for car purchases.

While some states have no sales tax, Alabama has taxes on almost everything you buy including cars.

However, what these taxes mean is that you can easily find yourself saving hundreds or thousands on your car when buying from dealerships located in Alabama. In fact, there are other advantages to buying a car in Montgomery.

When considering which dealership to purchase your next vehicle from, you should research which location offers high-quality vehicles at affordable prices while providing great service after delivery as well.

5. Decatur, Alabama

One of the cheapest cities to buy cars! – With low taxes and close proximity to major cities, Decatur has plenty of reasons for its residents not to leave.

One such reason might be priced at both new and used car dealerships. According to Edmunds, in November 2015, the average asking price for new cars was $40,433. This falls very closely in line with Used Cars listings at $39,203.

So residents of Decatur enjoy some pretty solid deals on vehicles while they look out over beautiful views along one of Alabama’s cheapest states to buy cars, and after all, why would you want to leave? It’s not like anyone could beat that kind of scenery.

6. Daphne, Alabama

One of America’s cheap cities, Daphne, Alabama is also one of Alabama’s largest coastal towns.

Whether you are going there to visit family or friends, or are a person that enjoys history and various activities like golfing, boating, and cycling you will find what you need there.

If cars are what interests you it might be best for you to do your research when it comes to how much new vehicles cost if you’re looking to purchase one at any point soon.

You want an idea of which city is going to provide you with high-quality yet affordable deals and options.

7. Auburn, Alabama

According to our latest estimates, Auburn was rated as having one of the lowest auto insurance premiums on average.

We estimate that approximately $1,028 will be required for someone looking for full coverage of liability protection and physical damage per year.

Based on those numbers we have estimated that Auburn has an average cost of $2,176 for full coverage insurance protection.

Birmingham is close behind with an estimated annual premium of $2,189. On top of those rankings, we can also show you where Huntsville ranks with an annual premium of around $2,350.

Using our website you can also get instant online quotes from companies like State Farm or Allstate so you can see how much your personal situation changes based on your age or driving record.

8. Hoover, Alabama

According to Kelley Blue Book, Alabama has three cities on its list of most affordable places to buy a new car, Hoover, Montgomery, and Birmingham.

If you can avoid buying used, which have their own financial pitfalls, new cars are your best bet financially.

While there are cheaper places to buy an older car that may still have lots of life left in it (like Michigan or Arizona), Alabama will get you a brand-new vehicle for far less than many other states.

And while many of these states with cheap vehicles are home to big metropolitan areas like Detroit and New York (where owning your own vehicle may not be as practical), Alabama cities typically have smaller populations, making ownership more realistic for buyers on a budget.

9. Tuscaloosa, Alabama

Tuscaloosa ranks as one of Alabama’s cheapest cities to buy a new car. Residents can expect to spend an average of $3,958 on a new vehicle. If you’re looking for inexpensive auto insurance rates, Tuscaloosa ranks low on our list.

Drivers pay an average annual premium of $1,284, which is more than $200 less than drivers pay statewide.

It may be surprising that Alabama has two of its cheapest cities located in its northernmost counties.

10. Florence, Alabama

If you’re looking for cheap, Florence might be your best bet. According to mycarcheck.com, average car insurance rates are as low as $1,348 annually for an Alabama driver in Florence.

That’s about half of what drivers pay on average across Alabama and significantly less than what drivers pay on average nationally ($2,053).

In fact, it’s one of the lowest averages we found anywhere in America. And that makes Florence one of our top picks for where to buy a used car if you want to save money on insurance costs, and who doesn’t?

It’s also worth noting that Florence has plenty of dealerships within its city limits, with some auto shops even willing to offer free vehicle inspections.

If you’re interested in getting more information about the cheaper cities that were found on this list, below are links with short explanations and various statistics:

Another cheapest city to buy a car:

Final Verdict

The final verdict on the cheapest cities in Alabama depends on whether you are looking for new or used cars.

The numbers show that Tuscaloosa and Bessemer are the least expensive places to buy used cars.

New car prices tend to be lower in Birmingham and Montgomery, but their affordability level for used vehicles comes out at about the same as in Tuscaloosa.

Ultimately it all comes down to your individual preference – do you prefer purchasing from an established dealership with less-than-honest sales reps?

Or would you rather purchase from a private seller who may offer more of an incentive with their vehicle’s price? The decision is yours.