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Buying direct from the manufacturer.
updated 2 weeks, 6 days ago
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In many states, there are franchise laws that allow a legal purchase of a car only through a registered dealership. Purchasing directly from the manufacturer is illegal. Tesla has found a workaround in some states.
How is Aptera planning to deal with delivery to states that prohibit direct-purchase?
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The laws only effect direct sales from those particular states. That means that they cannot set up a satellite store to directly sell to those in those states that requires sales through dealerships only. Anyone can order directly from California, and have it shipped to wherever they want to. This is what Tesla did and are still doing here in Texas where I live.
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How much is the sales tax in California?
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If you buy a vehicle in California, you pay a 7.5 percent state sales tax rate regardless of the vehicle you buy. Local governments can take up to 2.5 percent for a vehicle’s sales tax along with the sales tax that goes to counties and cities.If you buy a vehicle in California, you pay a 7.5 percent state sales tax rate regardless of the vehicle you buy. Local governments can take up to 2.5 percent for a vehicle’s sales tax along with the sales tax that goes to counties and cities.
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According to this site from the California Department of Tax and Fee Administration https://www.cdtfa.ca.gov/formspubs/cdtfa95.pdf the rate in San Diego County is 7.75%. Carlsbad isn’t listed as having a different rate. BTW, in CA you don’t pay a Sales Tax on vehicle purchases; rather you pay a Use Tax (which just happens to be the same rate).
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Chris, Thanks for responding so quickly, I am having some trouble deciphering your answer. Would it be possible to edit it to clarify some of the pronouns? “That means they…” Is ‘they’ Aptera? “to sell to those (who?) in those states” I assume ‘those states” are the ones that have restrictive franchise laws.
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Regarding sales tax- I believe one pays the sales tax of one’s home state, not the tax of the state vehicle was purchased in. My last vehicle was purchased in NC while I was living in VA. I paid the VA sales tax, not the NC sales tax which was higher!
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Same experience here. Purchased my Viper from MI and paid DE tax. I can only guess that this will be no different.
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Might double check that. If delivery takes place in CA at the factory or any place within the boarders of CA, you will need to pay CA tax. Of course if delivered out side of CA (Across the state boarder) or by some other means (Trucked to your state) you will not have to pay the CA tax. You also might check DE taxing to see if you end up having to pay CA tax if you get DE credit for the amount of CA tax you paid.
Easiest solution, don’t take delivery in CA
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Arizona will give you a credit for the CA tax; you just pay the difference between it and AZ tax rate.
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Delaware doesn’t have a sales tax….it does have a 4.25% “documentation fee”
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@Doug Happ Aptera is NOT an automobile: It’s either a motorcycle or an autocycle, depending upon state/province/country definitions. There’s not requirement that motorcycles or autocycles be purchased through a franchised dealership.
You’ll be purchasing your Aptera online – you won’t be carrying a check or bag of cash to the factory. You’ll pay the sales taxes in the jurisdiction in which you make the purchase – just like buying from Amazon.
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Kerbe, You raise good points for the scenario of having Aptera deliver it to me in my state of residence. You assert that the franchise laws do not apply to motorcycles and autocycles. Are you certain that that is true in all states?
A second scenario that I would like to investigate is traveling to California to take ownership. It raises many questions regarding plates, registration, inspection, sales tax in CA, and sales tax at home.
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My life experience is different from what you are stating. I have purchased new and used vehicles from several different states. Depending on where your vehicle will be registered (Illinois for me) thats where you will be paying taxes. If APTERA makes the sale they will need to collect those out of state taxes.
APTERA would need to set up for every state, because each state is different, to collect that state’s taxes. When you get home you will also need to pay separately for any county or even city taxes to be added. Each state generally has an agreement with each other, not all agreements are the same though.
APTERA should be able to set it up if you pick up directly from California to give you temporary plates, typically 30days.
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Can’t the vehicle be purchased on MSO and a temp tag if out of state? Then pay taxes in your home state when registered/titled for street use?
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