New Jersey To Tesla: You're Outta Here

Discussion in 'Politics, Religion, Social Issues' started by rdowns, Mar 12, 2014.

  1. rdowns macrumors Penryn

    rdowns

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    #1
    This strikes me as anti free market, anti job creation, anti consumer and protectionist for car dealers. IMO, car dealers add little to no value to the process.


    http://www.forbes.com/sites/michelinemaynard/2014/03/11/new-jersey-to-tesla-youre-outta-here/
     
  2. TheAppleFairy macrumors 68020

    TheAppleFairy

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    #2
    Completely agree with you there, that's too bad for people who were looking to buy a Tesla in NJ. I like the idea of direct sales. I had dealing with car dealerships anyway. I hope Tesla can help change the way we buy cars here. They are still really small to make any difference, but it's a start.
     
  3. iJohnHenry macrumors P6

    iJohnHenry

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    #3
    Can the consumer not 'make a run for the border'?

    New Jersey is not that large a state. ;)

    [​IMG]
     
  4. TheAppleFairy macrumors 68020

    TheAppleFairy

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    #4
    I suppose they can, but the fact that they have to because of some politicians sticking their nose in it is mainly the point.
     
  5. iJohnHenry macrumors P6

    iJohnHenry

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    #5
    True, but if they buy out-of-state, state sales taxes (if any) are lost to N.J.

    "Follow the money." ;)
     
  6. TheAppleFairy macrumors 68020

    TheAppleFairy

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    #6
    Is that how it works? In NY I believe if I buy a car in NJ, I get taxed in NY. I think NJ doesn't tax me and I pay the tax at DMV.
     
  7. APlotdevice macrumors 68040

    APlotdevice

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    #7
    Oh, those politicians are getting plenty of money from their campaign donors in the auto industry.
     
  8. edk99 macrumors 6502a

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    #8
    That is not how it works for cars. If you buy out of state sales tax still goes to NJ. I forget exactly how it works but you pay some tax at the dealer that goes to NJ then when you register the car in NJ you would pay the difference if any if the rate they charged you at the dealer was different then the rate where you live in NJ.

    In any event NJ will not be losing out on the tax.

    You can thank the auto dealers lobbing group for pushing politicians to make these laws. So if Tesla wants to sell their cars in NJ they will have to do it through a dealer and not direct.
     
  9. Michael Goff macrumors G3

    Michael Goff

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    #9
    So if they go to another state, they buy in that state, they drive it back to NJ, they're supposedly supposed to pay sales tax in NJ? :confused:
     
  10. TheAppleFairy macrumors 68020

    TheAppleFairy

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    #10

    Have you ever bought a car from a private party in your state? In NY you pay the sales tax when you register.
     
  11. MacNut macrumors Core

    MacNut

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    #11
    You pay the tax in the state the car is registered.
     
  12. rdowns thread starter macrumors Penryn

    rdowns

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    #12

    Correct. You pay the sales tax based on where you register the vehicle, not where you buy it.
     
  13. Michael Goff macrumors G3

    Michael Goff

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    #13
    I have not.

    That is stupid.

    That makes no sense to me.
     
  14. iJohnHenry macrumors P6

    iJohnHenry

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    #14
    Then get Tesla to plate the car where you buy it. ;)
     
  15. TheAppleFairy macrumors 68020

    TheAppleFairy

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    #15
    Don't think that's possible, it's not how you register cars.
     
  16. iJohnHenry macrumors P6

    iJohnHenry

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    #16
    Sorry, playing Devil's Advocate here, looking for chinks in the armour. :eek:
     
  17. Technarchy macrumors 603

    Technarchy

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    #17
    I'm a big supporter of Tesla.

    There is no reason to mandate a middle man.

    These lobbyist backed nonsense regulations are going to retard the adoption rate of electric cars and growth of the charging infrastructure.
     
  18. TheAppleFairy macrumors 68020

    TheAppleFairy

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    #18

    Would be nice, but I don't think it's possible. Unless you have a residence in the state you purchased, and a drivers license in that state.
     
  19. bradl macrumors 68040

    bradl

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    #19
    Which means that they should follow the votes or those involved in the decision to have the ban. If they find out that other manufacturers or dealerships were involved in the decision making for the ban, that screams antitrust.

    BL.
     
  20. quagmire, Mar 12, 2014
    Last edited: Mar 12, 2014

    quagmire macrumors 603

    quagmire

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    #20
    There would be no reason why the automakers would oppose Tesla being able to directly sell their cars. It would actually benefit them if Tesla wins out because they could also start opening corporate dealers and having more direct control in their customer service at dealers.

    You don't know how many people will blame the automaker for a dealer trying to screw them thinking they have control over the process. They don't.

    I hate the third party dealers. It makes it hard for automakers to shrink their dealer network if they have to. The dealers sued GM and Chrysler after they tried to close them down during their bankruptcy. You of course have the dealer markups. And you can also blame the dealers for shoddy product decisions like the Pontiac G3 and G5( not putting sole blame on the dealers, but they had a role in that decision). Pontiac dealers wanted more volume products to sell and in order for GM to get them to consolidate with Buick and GMC dealers, we got the "wonderful" G3 and G5.... :rolleyes:

    If Apple, MS, AT&T, Verizon, etc can have corporate stores, automakers should too. You don't see Apple's, MS's, AT&T's, Verizon's, etc corporate stores putting the third party ones out of business.... :rolleyes:
     
  21. elistan macrumors 6502a

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    #21
    That's how ALL sales taxes are supposed to work. That's why if you purchase an iPhone, you pay your state's sales tax even through it's assembled in and shipped from China.

    Things are slightly different if the vendor does not have a presence in your state - in which case they are not required to collect sales tax at the time of sale. But the consumer is still required to pay the sales tax.

    It's just that the states pretty much never enforce that.

    Except in the case of cars, since cars have to be registered to use on the road. That gives states the capability to enforce their sales tax. Something like a DSLR purchased online doesn't have to be registered with the state to be used, so the state has no idea you ever purchased it, so they don't bother trying to enforce the collection of sales tax on such items.

    If that same customer purchases the DSLR in person, even out of state, the product is considered "delivered" at the location of sale, and would be taxed at the local sales tax rate.

    http://taxes.about.com/od/statetaxes/a/Do-I-Charge-Sales-Tax-Or-Not.htm
     
  22. CalWizrd Suspended

    CalWizrd

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    #22
    Have you ever bought a car?
     
  23. macquariumguy macrumors 6502a

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    #23
    These dealership laws are 100 years old. They actually served a purpose at one time.
     
  24. Michael Goff macrumors G3

    Michael Goff

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    #24
    This is different. If I buy something in China, and go get it in China, I don't pay for sales tax in my state (I don't think).

    Nope.
     
  25. TheAppleFairy macrumors 68020

    TheAppleFairy

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    #25
    I think you do, isn't that what duty taxes are?

    As a matter of fact I bought something from ebay from China and I was sent a tax form to pay my taxes for the item.
     

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