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Business & Tech

Good Time to Buy a Car?

Car dealerships are doing well, and it could be the lowering of the vehicle licensing tax.

The San Bernardino Auto Mall is experiencing a rush of customers as car buyers hurry to purchase new cars while the state’s vehicle tax is at a historical low rate, according to Cliff Cummings, owner of the Toyota of San Bernardino, Mitsubishi of San Bernardino, Subaru of San Bernardino and the I-10 Toyota dealerships.

Vehicle licensing fees were reduced from 1.15 percent to 0.65 percent when the temporary additional vehicle license tax expired at the end of June. This was one of the popular steps Gov. Arnold Schwarzenegger took when he came into office.

They are not the only ones. Loma Linda Spreen Honda owner Greg Spreen said he has seen an increase in car sales.

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"But I can't attribute it to anything in specific," he said.

As the budget battles go on in Sacramento, it is expected that the vehicle tax will rise again to help cover budget shortfalls. Cummings said many customers are trying to purchase vehicles before they are hit with increased licensing fees.

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"People are hurrying to buy now because they anticipate it will be more expensive in the future," he said. "Now is a great time to get a good deal on a new or used vehicle, while the car tax is still low."

The San Bernardino Auto Mall is home to the local Toyota/Scion, Mitsubishi and Subaru dealerships.

Gina Tenorio contributed to this report.

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