[pabianice]

Wait a minute. Sales on $ 40,000 cars fell 40% because CA raised the registration fee from $ 50 to $ 150? Not likely.

[Dr. Frank fan]

Sales on $ 40,000 cars fell 40% because CA raised the registration fee from $ 50 to $ 150? Not likely.

Why not?

[DugwayDuke]

"The fee amounts to 2% of the vehicle's value."

Check your math.

[Rodney Dangerfield]

Uh, no. Reg. fee on a new 40K car probably went from around $400.00 to $1200.00

$50.00 would register a mid-80's vehicle, pre - Oct. 1st.

[Weimdog]

2% vehicle licence fee on $40,000.00 is $800!

[vp_cal]

the liberals i know in california actually
want people to buy fewer cars because that
will mean less pollution.

They consider the fact they can generate tax
revenue from it to be an additional bonus.

[gubamyster]

The guy I work with just registered his Mercedes - $1,399.00

[heleny]

Sales on $ 40,000 cars fell 40% because CA raised the registration fee from $ 50 to $ 150? Not likely.

Check your math. The registration fee was $30 (flat), and the other smog/etc fees were unchanged. The Vehicle License Fee is the only tax increase. It increased from $267 to $800.

For comparison: sales tax was unchanged at $2900 plus local sales tax.

You're right, a (relatively measly) additional $533 annually shouldn't make a difference in the sale of a $40,000 car. But, consider car leases, where a driver pays monthly payments on a car but has to surrender the car after the 3 years term of the lease. He has to pay the registration/VLF fees while he uses the car. In that case, where his monthly payment is probably $300, perhaps because he cannot afford a car loan to buy the car, the increased upfront costs may break the deal.

[Phantom Lord]

Why wouldnt sales have plummeted since the tax increase? Arnold (and Tom) campaigned on eliminating the increase. So why not wait a month to buy that new car and save some money.

Many people may also be not buying as a form of tax protest as well.

[freedumb2003]

Wait a minute. Sales on $ 40,000 cars fell 40% because CA raised the registration fee

Unintended Consequences: It's not just an idea, it's the law.

[BJungNan]

Wait a minute. Sales on $ 40,000 cars fell 40% because CA raised the registration fee from $ 50 to $ 150? Not likely.

Try again. The license fee on a $40,000 car is over $800. Before is was $266 dollars. Then there is sales tax at 8 percent, destination charge, documentation charge and the empty tank of gas they give you when you pick up the car that costs you another $45.00 at $2.15 a gallon as soon as you drive off the lot. In all, the dealer will tell you that you need about 10 percent of the cars value just for the above.