Car dealerships worry about sales tax increase

March 30, 2009 7:52:44 PM PDT
California car dealers are especially concerned about a 1 cent increase in the state sales tax, which goes into effect this week.

SIGN-UP: Get breaking news sent to you from ABC7 News

The 1 cent statewide increase begins Wednesday. It is expected to bring in nearly $6 billion over the next 15 months. Car dealers say housing problems in the bay area have potential customers worried about other big-ticket items and they are afraid to buy right now.

According to industry analyst JD Power, the sales tax hike will add $265 to the cost of an average new vehicle. Increased license fees will add another $132.

       Today's latest headlines | ABC7 News on your phone
Follow us on Twitter | Fan us on Facebook | Get our free widget