Effective April 1, 2009, California state sales and use tax will be increasing by 1%, so if you’re thinking of buying or leasing a new car in the next couple of weeks or even months, now is the time to do it and we can help! Buying or leasing prior to the tax increase could save you hundreds of dollars!

This 1% tax increase effects those who buy AND those who lease, and more specifically those who like to reduce the capitalized cost of their car, or in other words, those who choose to “put more money down” to reduce their monthly payments! Some additional details:

For buyers: the 1% in additional tax will increase the “out the door” price of the vehicle if you buy after April 1st. If you buy before April 1st, and because you are financing, your payment will not change even when the sales tax and use rate increases. If you’re already financing a car and making payments, this 1% tax increase will not effect your current monthly payment or your vehicle loan.

For lessees: after April 1st, you will pay a 1% increase on any fees and/or taxes that are assessed at lease inception. If you lease before April first, those initial fees at lease inception will not be subject to the 1% increase, but your subsequent lease payments after April 1st will! And, yes…for those already leasing a vehicle…you guessed it…your payment is going up!

Questions? Call 818.345.5555 or e-mail info@drivewiseauto.com and we’ll have answers!