The cost of a new vehicle is higher than it has ever been, and prices continue to go up. Along with that is the increase in the price insurance and gasoline. Add it all up, and you will find that the cost of buying and owning a car is quite expensive. Savvy consumers shop around to find the best deal and are often rewarded for their hard work. In the case of residents of California and other highly taxed states, the price of sales taxes adds considerably to the cost of buying a new vehicle. Again, savvy shoppers have found a solution to this problem - buy the vehicle out of state and drive it home.
That seems like a good idea. After all, a 2% decrease in the sales tax on a $25,000 car means a savings of some $500, which will buy a few tanks of gas, even at today’s prices. The savings are even more significant if the vehicle in question is a $250,000 motor home. There may be a downside to this system, however. A recent court ruling by the California Supreme Court has ruled that the California lemon law applies only to vehicles actually purchased within the state.
This may come as a strong blow to Californians, who enjoy the first, and one of the most powerful, lemon laws in the United States. Consumers who buy their vehicles out of state, bring them home, and then find out that they have nonconformities that prevent them from being repaired will find out that they have no protection under California law. Worse, they may have no protection under any law. Most state lemon laws require that the vehicles be purchased in that state. In addition, most lemon laws require that anyone filing a claim under the law must also be a resident of that state. This may leave buyers who purchase a vehicle and drive it to another state out of luck.
Attorneys for the state of California called the ruling fair, pointing out that enforcing the statute costs money, and that it doesn’t seem reasonable for the law to represent buyers who don’t pay the sales taxes that support it.
Vehicle warranties will still apply, of course, and if the problems with the vehicle can be repaired under warranty then they will be covered. In addition, owners of these vehicles may pay for any additional repairs not covered under warranty. They are not, however, entitled to replacement or refund should the repairs be unable to permanently resolve the problem.
The savings encountered when purchasing a vehicle in a neighboring, lower-taxed state may be significant. Anyone planning such a purchase should be aware, however, that the savings may turn out not to be all that significant if the vehicle turns out to be defective. A $5000 savings on a defective, useless quarter of a million dollar motor home is no bargain. Buyers should exercise caution.
That seems like a good idea. After all, a 2% decrease in the sales tax on a $25,000 car means a savings of some $500, which will buy a few tanks of gas, even at today’s prices. The savings are even more significant if the vehicle in question is a $250,000 motor home. There may be a downside to this system, however. A recent court ruling by the California Supreme Court has ruled that the California lemon law applies only to vehicles actually purchased within the state.
This may come as a strong blow to Californians, who enjoy the first, and one of the most powerful, lemon laws in the United States. Consumers who buy their vehicles out of state, bring them home, and then find out that they have nonconformities that prevent them from being repaired will find out that they have no protection under California law. Worse, they may have no protection under any law. Most state lemon laws require that the vehicles be purchased in that state. In addition, most lemon laws require that anyone filing a claim under the law must also be a resident of that state. This may leave buyers who purchase a vehicle and drive it to another state out of luck.
Attorneys for the state of California called the ruling fair, pointing out that enforcing the statute costs money, and that it doesn’t seem reasonable for the law to represent buyers who don’t pay the sales taxes that support it.
Vehicle warranties will still apply, of course, and if the problems with the vehicle can be repaired under warranty then they will be covered. In addition, owners of these vehicles may pay for any additional repairs not covered under warranty. They are not, however, entitled to replacement or refund should the repairs be unable to permanently resolve the problem.
The savings encountered when purchasing a vehicle in a neighboring, lower-taxed state may be significant. Anyone planning such a purchase should be aware, however, that the savings may turn out not to be all that significant if the vehicle turns out to be defective. A $5000 savings on a defective, useless quarter of a million dollar motor home is no bargain. Buyers should exercise caution.
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