Best State to Buy an RV To Save Money

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Last Updated on August 23, 2024 by Shera Mae Torollo

Best State to Buy an RV To Save Money

When purchasing an RV, location can significantly impact the total cost. Through comparison and comprehensive analysis, this guide presents detailed information on the best state to buy an RV to save money, providing potential buyers with valuable insights to make an informed decision.

• Texas: Offers advantages for RV buyers, including savings.
• Montana: There is potential for savings with no sales tax.
• Florida: A competitive RV market and savings.
• Arizona: Arizona’s RV parks offer savings.
• Oregon: No sales tax, competitive market for savings.
• Nevada: No income tax.
• Washington: No income tax, competitive market.
• California: Offers a competitive RV market selection.

Purchasing a used RV is the same as getting you a new vehicle. You will have to negotiate with the dealer for a better deal, and once you buy it, you are faced with some sales tax. This is common ground for any purchase; it is nothing special.

However, nowadays, RVs are getting pricier daily, and outdoor enthusiasts are constantly looking for a good and affordable alternative that will save them a couple of dollars for other things.

Now imagine if you could do that simply by driving for a few hours to another state where you can find the cheapest RV deals without compromising quality. Depending on where you live, the probabilities of this possibility differ on some factors.

In this article, we will discuss which state is the best to purchase an RV and the differences between states when buying an RV. Keep on reading.

To quickly answer the question of the best state to buy an RV, I would look at Montana and Texas, with Montana being my first choice.  The reasons are sales and registration tax, which we’ll discuss below. 

What Is The Best State to Buy an RV?

With thorough market research, knowledge about the latest trends, and good price comparison, it would be possible to get a good deal.

Whether you are a US citizen doesn’t matter in this scope. After all, our highlight is to see if this possibility of traveling to another city to get a good purchase deal is made possible or not.

As a US citizen, this might not be your greatest venture if you buy a very affordable used RV. However, if you are considering acquiring an RV that can reach 100k or more, driving to another city could be one of the best savings options.

For non-US citizens, however, where is the best place to buy an RV for a better and cheaper price matters. After all, you will spend a few months here traveling and don’t want to invest much money. That’s why sometimes traveling to different cities could be the right decision for you.

Now, let’s think about it: is it worth the hassle?

The answer to this question differs depending on several factors we will discuss later in this article. But the first indicator of asking yourself this question is identifying what you want.

Are you fully embarking on an RV lifestyle? Is it doable for you to move to another state just because of the tax benefits offered in that one? Are the travel costs between your home city and the hosting city high? All these questions will alter your decision-making. This is, of course, besides some important different factors.

One thing you should keep in mind is that the price deal should justify all this hassle you are going to go through. If it does not justify it, it is not worth it. If we can say, you can keep 10% savings simply by purchasing the used RV from a different state.

You can save 400 dollars by buying a $4k RV. 400 dollars is good money, but not once travel costs and other things start to add up. However, if you were to buy a $300k luxury RV, then we are talking about $30k savings. Now, this is good money, no matter the travel costs.

What factors can differentiate the sale from one state to another?

When it comes to buying an RV, there are several differences that you should keep in mind:

• sales tax
• Registration fees
• Insurance regulations

How does this whole process of buying an RV take place?

Whether you buy the RV in your state or not doesn’t matter. Why?  The answer is because cause you have to register the RV purchase in your own state within a month.

This also comes with registration fees, insurance regulations, and sales taxes. The registration tax fees can be way cheaper in the other states, making you question whether you want to move there. Again, this depends on what you want, as mentioned in the above section.

Registration Fees

Your purchased RV needs to be registered and licensed. This is one of the important steps whenever you buy a new vehicle. That vehicle will carry that license plate, which gives some identity.

While some states make the entire registration process hassle-free, other states have some registration requirements that need to be followed, which may cost some additional money.

We have two types of registration fees:

• Direct Registration Fees:

You will need a valid US address and driver’s license for direct registration fees. Usually, the fees are defined depending on the value of your RV. While some states will calculate the value to create a fair price, others won’t bother and will give you a flat valuation charge.

However, you can check the vehicle registration fees online or via a legally registered document.

• Indirect registration fees.

Your RV might have to undergo some inspections for the indirect registration fees. These inspections could examine the safety of your RV, its emissions, and others. This might not happen in every state, but depending on which state you are in, you can be faced with this. It can also be either regularly or simply for a one-time procedure.

The Laws about RV Sales Tax

Now, after you have paid your registration fees, you will have to deal with sales tax. The sales tax depends on which state you have licensed your RV, not from where you bought it but from where you registered it.

It can be either your home state or a recently moved state. Many RV owners make false statements about their registration addresses, writing down different addresses from their actual ones. While this made it possible, some states might allow people to register their RV under state regulations, while others don’t.

For example, Montana State permits out-of-the-state residents RV owners to register their RV since it does not acquire Sale tax. This is a great deal for some RV owners as it will help them to avoid paying the sales tax.

Click here to read where can I park my RV for free ten options

Nevertheless, other states will not allow such a procedure even though they don’t have a general sales tax. For them, it is considered state evasion, and it is impossible to permit outsiders to register their RVs under a false state address.

These states are New Hampshire, Oregon, Alaska, and Delaware. To be able to register your RV in these mentioned states, you have to be legally residing in these states.

Other states like California, Minnesota, Massachusetts, and Iowa impose sales tax on RVs entering that state while being bought in another. These kinds of laws support the states to collect tax revenue and RV registration fees.

Now that general sales tax exists in 45 states out of 50, you can’t avoid sales tax in any way. You can’t simply avoid paying the taxes because you will be followed by Tax officials anywhere you go, especially now they have your registration documents.

The only possible way is to transfer to another cheap state where the sales tax is less expensive than your current state. However, you can only decide if you know you won’t spend lots of money on your moving costs.

• Insurance wise:

The insurance varies accordingly depending on which state you are in. There are three kinds of obligatory insurance you should keep in mind:

1. Bodily injury liability per accident; in this case, the insurance will go for all the people who got injured during the accident
2. Property damage liability: in this case, the insurance will be paid for the property that was damaged during the accident
3. Bodily injury liability per person: in this case, the insurance will be paid for the person injured during an accident

Michigan is one of the priciest states regarding RV insurance, reaching up to $2k, while Maine is considered the least expensive.

How many years will an RV last?

The lifespan of an RV is highly dependent on several factors, most notably the level of care and maintenance it receives. A well-maintained RV lasts 10 to 30 years or runs for approximately 200,000 to 300,000 miles. The answer to the question, “How many years will an RV last?” is unclear.

Various elements, such as exposure to harsh weather conditions, infrequent use, and poor maintenance practices, can significantly reduce an RV’s life expectancy. To maximize your RV’s lifespan, it’s vital to adhere to regular service schedules, keep it clean, and properly store it when not in use. This way, you can enjoy your RV for many years or miles.

Wrapping Up

Several states offer notable advantages in identifying the best state to buy an RV to save money. Montana is a state that potential RV buyers should consider due to its lack of sales tax, providing consumers with notable savings. Texas, for instance, is an attractive choice for RV buyers due to its lucrative savings opportunities and a vast selection of RVs.

Florida’s competitive RV market also fosters an environment for savings, with a broad range of options catering to different tastes and budgets. Arizona adds to the list with its savings-rich RV parks. Oregon is a standout with no sales tax and a competitive market that promotes affordability.

Nevada and Washington are attractive options for their absence of income tax, which can help save money in the long run. Lastly, California stands out with a diverse and competitive RV market. Each state presents unique opportunities for savings, making them top considerations for individuals seeking the best state to buy an RV to save money.

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