We’ve all seen deals that look too good to be true if you’re willing to fly or drive out-of-state to buy your next new vehicle. Here’s 4 reasons why not to:
1. California Lemon Law – is the most complete and protective but does not apply in most cases where the vehicle is purchased outside of California. It is such a great consumer right why waive it? If your new car turns out to be a lemon wouldn’t you want the ability to make the manufacturer honor its warranty by making them fix it, buy it back, or replace it? Or reimburse you for warranty repairs you had to pay for out of pocket?
2. Fake Deals – dealers pay the same for the same vehicle no matter what state they’re in. Even the delivery charge is the same. So when the offer is too good to be true look carefully for where they moved their profit margin to. For example, recently I was trying to buy a new Jeep Wrangler Unlimited and found what looked like a fantastic deal out of state, but when I inquired they said it came with about $3000 of required “add-ons” including paint protection, plastic protective film, and gps location services that had to be added to the advertised price!
3. Jobs – keep the jobs in California. When you buy a vehicle you’re supporting several families. From the regional manager, the local manager, the dealer, the salespeople, finance personnel, and all the other folks who work at that dealership. When you think about it many of them have families that rely on that income. And that money in turn flows back into the local community and economy in the form of purchases they make and services they pay for.
4. Tax Revenue – similar to keeping the jobs and cash flow here in California, the sales taxes collected on a car sale are huge. Think about what is approximately 8% on a new car purchase. At an average new car price of about $37,000 that amounts to almost $3000!
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