What is the best city to buy cars in Brazil? Is it cheaper if I buy a car in another location? This question has certainly been asked by many people because of the high prices charged by dealerships.

Ultimately, it's no secret that buying a car in Brazil is an arduous task. In fact, Brazil has the unfortunate distinction of being one of the places where cars are among the most expensive in the world. 

However, the good news is that it's possible to get around the high prices. To avoid the exorbitant prices of new, used, and nearly new vehicles, you should look for vehicles in other cities and even states. 

So, once again, with the goal of helping you, our experts have gathered as much information as possible. After much research, you will know which is the best city to buy cars in Brazil.

Although they don't openly admit it, car manufacturers pass on the taxes intended for governments to consumers, which means that the burden of the final price of the car falls entirely on the consumers. 

In the case of high-end models, the costs are even higher due to importation. Upon arrival in Brazil, it is necessary to pay IPI (Tax on Industrialized Products), ICMS (Tax on Circulation of Goods and Services), PIS/COFINS (Social Integration Program/Social Security Financing Contribution), in addition to the well-known taxes related to IPVA (Vehicle Property Tax) and licensing. 

Furthermore, in recent years, the automotive market hasn't had much to celebrate. Although it showed positive results until 2015, from then on there was a sharp decline. 

In other words, from that date onwards, the sector went through turbulence causing layoffs and has recently been affected by production stoppages. 

Rising inflation along with the fluctuating dollar are other factors that have impacted car prices and led many people to look to other cities to buy their car. 

To avoid exorbitant prices, people choose to buy cars outside of other regions. And there are, in fact, better states and cities to buy cars in Brazil. A classic example is Toyota. 

The Japanese automaker has even stated on its website that buying a Hilux in São Paulo requires more money. The pickup truck was sold in the São Paulo capital for R$289,590, while in the rest of the country, the price was R$280,000.

In the Manaus Free Trade Zone, the same pickup truck was selling for R$215,000. This variation is due to taxes, the number of dealerships, and competition. 

The state of São Paulo has a higher ICMS (a state sales tax), which makes cars sold in the state more expensive. However, due to competition, prices decrease. 

Even in smaller towns, it's common for certain vehicles to be unavailable, such as luxury cars. This leads some people to look elsewhere to buy them. 

Although it's not a simple practice, many people are already looking to other states to buy more affordable cars. But when it comes to choosing the best city to buy cars in Brazil, there isn't just one option.

Therefore, it's necessary to consider a range of options and situations when choosing a suitable place to buy your car, okay? Even so, check out some alternatives below.

Although São Paulo has one of the highest ICMS (state sales tax) rates in Brazil, its capital city is considered the best place to buy cars. This is because the number of dealerships and the demand are very high. 

Furthermore, there are luxury brands that are only sold in the city of São Paulo. Therefore, if you are looking for an exotic or special vehicle and want to pay a low price, São Paulo is where you will find it. 

Here we have an excellent city option for your purchase. This is because there are tax incentives in the Free Trade Zone, which generates partnerships and encourages development in the region. 

Furthermore, it's very common for certain types of vehicles, such as pickup trucks, to be exempt from IPI and ICMS taxes. However, even with good prices, buying in the city and taking them to distant locations, such as the South and Southeast regions, is not cost-effective. 

That's because the special conditions are only offered for the city. In other words, to buy a car in the city and take it to another location, you have to pay the difference in taxes, and that makes everything more expensive. 

Continuing our article that attempts to answer which is the best city to buy cars in Brazil, we will now talk about cities in the South, Northeast, and Midwest regions.

Although there are vehicle factories in these regions, there is a shortage of dealerships. This leads to vehicles being produced in other locations – such as the ABC Paulista region and the Manaus Free Trade Zone – and transported there by land. 

The cost of transporting a car includes a freight fee in the final price. Who pays this freight fee? The buyer. Therefore, there are two excellent cities to buy a car in Brazil: São Paulo and Manaus. 

However, in general, if we take into account travel, additional fees such as shipping and everything else, the prices in other cities are within the national average. 

Now that you know which is the best city to buy cars in Brazil, let's continue to help you. We've compiled a list of prices from July 2021, based on the FIPE table, for the 5 cheapest cars in Brazil.

So, if you live in São Paulo or Manaus, want a brand new car, and are looking for a good price, here's a tip: focus on the models we're going to show you.

The Hyundai HB20 Sense version starts at R$ 59,290. This is the entry-level version that features a 1.0 12V three-cylinder naturally aspirated engine under the hood. Besides having a powerful engine, the HB20 Sense offers a range of standard features. 

Stability and traction control, hill start assist, electric power steering, air conditioning, power windows and locks, trip computer, and front and side airbags are all standard features on this model.

In other words, this is a great option whether you're in or outside the best city to buy cars in Brazil. 

The Grand Siena with a 1.0 8V engine for R$ 58,590 is a surprise to many people. The veteran model ends up being considered the cheapest sedan in Brazil. 

Equipped with the well-known 1.0 Fire engine, it offers generous space for occupants, in addition to an excellent 520-liter trunk. Furthermore, this "old warhorse" offers a range of standard features. 

It comes standard with power steering, air conditioning, on-board computer, rear window defroster, and power windows and locks. It's a car with excellent value for money. 

At the bottom of the podium for the cheapest cars in Brazil we have the Uno Attractive, which starts at R$ 56,190. The hatchback is equipped with the older version of the Fire engine, a 1.0 8V. 

At least Fiat kept some nice standard features: air conditioning, power steering, power front windows, and power locks. 

The Uno's outdated status is no accident. The compact car is already 40 years old and nearing its end. Even so, it received a facelift in 2010 and featured on the list of best-selling cars in 2020.

However, Fiat has been experiencing a drop in sales. But buying a Uno in the best city for buying cars in Brazil is still a good idea, right?

The Kwid Life version is the cheapest and starts at R$44,390. Launched in 2017, the model has always been among the cheapest cars in Brazil.

In fact, at its launch, the pre-sale price was R$ 29,990. A price increase in the range of R$48% that borders on the absurd. However, although it costs less than R$ 45,000, the Kwid is sold completely stripped down. 

In other words, it doesn't have air conditioning, the windows are all manual, and it comes without a radio. Standard features include only two front airbags, an internal trunk release, and a gear shift indicator. 

And the cheapest car in Brazil today is the Fiat Mobi. The easy version starts at R$43,990 and has a 1.0 8V Fire engine under the hood. Launched in 2016, it always tried and now it has finally achieved the title. 

However, the cheapest version has the bare minimum necessary for survival, but offers dignity to its owners. For example, a folding seat, 12V socket, and internal mirror controls are standard features. 

Now, if you want air conditioning and power steering, you'll have to pay extra for it. Therefore, our advice is to look for a Mobi in the best city to buy cars in Brazil. 

Now that you know which is the best city to buy cars in Brazil and which models are the cheapest, we have a very important tip for you. 

With brand-new cars costing an arm and a leg, looking for used ones is a great idea. However, knowing how to appraise a car is important, as this helps to lower the price even further.

So, we've put together some special content where we teach you how to fairly and honestly evaluate the price of a used car. Want a quality used car at a fair price? It's simple! Click the button below.