Return to Transcripts main page

Live From...

Car Registration Fees to Triple in California

Aired September 30, 2003 - 13:18   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


KYRA PHILLIPS, CNN ANCHOR: Motorists in car-crazy California say they're angry about a big jump in car registration fees which will triple starting tomorrow. It comes right before the critical California recall vote.
We get the latest now on the boiling political pop from CNN's Frank Buckley. Frank, looking behind you at the cars I can see why it would probably triple. It's already expensive enough.

FRANK BUCKLEY, CNN CORRESPONDENT: Absolutely, Kyra. We can see you in one of these. Just come down here to Galpin Ford. I've always wanted to say something like that. That's my new gig in the later life, I'll have a car dealership.

What you were talking about is absolutely right, Kyra. This is really tough political timing for Governor Gray Davis, this increase in license fees. People who are angry at Gray Davis already are reminded of that just a few days before election. It just provides one more hurdle for Gray Davis.

But here at car dealerships like Galpin Ford they are very excited, as you imagine, because it's the last day that people can buy a car before this new license fee takes effect. They're the No. 1 Ford dealership in the nation here so they've added salesmen and they're doing all kinds of things today to take advantage of this situation.

Just to give you a sense of how much the prices are going up they have a chart here. They actually use this in their marketing to try to increase sales. Just some examples. A Saturn that's valued at $11,995, as they say in the car dealership business, right now $122 is the license fee you pay. Tomorrow it goes up to $283. Now as you go higher in value, look down here at the Volvo, 32,000 bucks. Right now it's $259. Tomorrow if you buy the car the license fee is $703.

You can imagine that consumers are affected by those kinds of numbers. And here to talk about it is Brad Boeckmann, one of the -- Beau Boeckmann, one of the bosses here at Galpin.

First, let's talk about business and politicking. First business.

BEAU BOECKMANN, VP, GALPIN FORD: Sure.

BUCKLEY: You guys are seeing an increase in sales as a result of this, right? BOECKMANN: Huge increase in sales. Probably about 25 percent this month. But in the last week we've seen our business double. So it's been pretty incredible.

BUCKLEY: Let's look at nationwide. California, huge consumers of cars. It's probably going to be a double-edged sword. First you see a huge increase. After the license fee takes effect, I would imagine you're going to see a drop off. How will have affect car manufacturers in the months ahead?

BOECKMANN: I believe it could be a little difficult coming up here. Nobody wants to pay more taxes. And what's why everybody is rushing in to buy cars right now. No one's saying, Oh, I'll wait until October so I can pay triple the car tax. So it could have an effect.

BUCKLEY: Let's talk about politics. You're not a political expert but you talk to people of all walks of life who buy all types of cars. The recall election is just a week away. People are once again reminded of something unpleasant about state government. Do you think this is going to hurt Gray Davis, the governor?

BOECKMANN: I think it will, actually. In California everybody's on wheels. Especially here in Los Angeles you need to have a car. It literally affects everybody. Like I said, I don't think anybody wants to pay any additional taxes, which is why we're seeing a huge increase in business right now.

BUCKLEY: Many of the major candidates have said they would immediately resend this license fee but the governor has said that -- we'll just thank you very much for Beau and we'll explain to the viewers, the license fee increase was triggered by a 1998 law that said when the budget went into the red they had to increase the license fee.

The governor said he had to make a tough choice and provide funding for state and local governments. That's what he did. He had no choice. He opposes this fee as well. Still, it's really tough political timing for the governor just a few days before the election -- Kyra.

PHILLIPS: Not only that, Frank, remember isn't there like a fog -- another fee you have to do with your car, also, like to check out -- you're getting paged over the intercom there. They need you to sell some cars in the back, Frank. Seriously, isn't this just one more fee to tack on, you have to get -- a smog fee, right? Smog check?

BUCKLEY: Oh, man, you know what it's like here, Kyra. We have various, various fees that we've got to pay when we buy a car.

But the good news, if there is any good news in this, is that this is the only fee that's going up when you buy a car. And again, it's just going up today. The problem is that it's going to hit you every year until this fee goes away so that, you know, every year you get a statement in the mail that says here's your license fee for this year. Well, that fee goes up as well.

And so there's no way for people to buy ahead to avoid this completely. You can avoid today's hit, but next year it's going to hit once again.

PHILLIPS: Oh, my gosh. our economist and correspondent and car salesman, Frank Buckley. Thank you, Frank.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com







Aired September 30, 2003 - 13:18   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Motorists in car-crazy California say they're angry about a big jump in car registration fees which will triple starting tomorrow. It comes right before the critical California recall vote.
We get the latest now on the boiling political pop from CNN's Frank Buckley. Frank, looking behind you at the cars I can see why it would probably triple. It's already expensive enough.

FRANK BUCKLEY, CNN CORRESPONDENT: Absolutely, Kyra. We can see you in one of these. Just come down here to Galpin Ford. I've always wanted to say something like that. That's my new gig in the later life, I'll have a car dealership.

What you were talking about is absolutely right, Kyra. This is really tough political timing for Governor Gray Davis, this increase in license fees. People who are angry at Gray Davis already are reminded of that just a few days before election. It just provides one more hurdle for Gray Davis.

But here at car dealerships like Galpin Ford they are very excited, as you imagine, because it's the last day that people can buy a car before this new license fee takes effect. They're the No. 1 Ford dealership in the nation here so they've added salesmen and they're doing all kinds of things today to take advantage of this situation.

Just to give you a sense of how much the prices are going up they have a chart here. They actually use this in their marketing to try to increase sales. Just some examples. A Saturn that's valued at $11,995, as they say in the car dealership business, right now $122 is the license fee you pay. Tomorrow it goes up to $283. Now as you go higher in value, look down here at the Volvo, 32,000 bucks. Right now it's $259. Tomorrow if you buy the car the license fee is $703.

You can imagine that consumers are affected by those kinds of numbers. And here to talk about it is Brad Boeckmann, one of the -- Beau Boeckmann, one of the bosses here at Galpin.

First, let's talk about business and politicking. First business.

BEAU BOECKMANN, VP, GALPIN FORD: Sure.

BUCKLEY: You guys are seeing an increase in sales as a result of this, right? BOECKMANN: Huge increase in sales. Probably about 25 percent this month. But in the last week we've seen our business double. So it's been pretty incredible.

BUCKLEY: Let's look at nationwide. California, huge consumers of cars. It's probably going to be a double-edged sword. First you see a huge increase. After the license fee takes effect, I would imagine you're going to see a drop off. How will have affect car manufacturers in the months ahead?

BOECKMANN: I believe it could be a little difficult coming up here. Nobody wants to pay more taxes. And what's why everybody is rushing in to buy cars right now. No one's saying, Oh, I'll wait until October so I can pay triple the car tax. So it could have an effect.

BUCKLEY: Let's talk about politics. You're not a political expert but you talk to people of all walks of life who buy all types of cars. The recall election is just a week away. People are once again reminded of something unpleasant about state government. Do you think this is going to hurt Gray Davis, the governor?

BOECKMANN: I think it will, actually. In California everybody's on wheels. Especially here in Los Angeles you need to have a car. It literally affects everybody. Like I said, I don't think anybody wants to pay any additional taxes, which is why we're seeing a huge increase in business right now.

BUCKLEY: Many of the major candidates have said they would immediately resend this license fee but the governor has said that -- we'll just thank you very much for Beau and we'll explain to the viewers, the license fee increase was triggered by a 1998 law that said when the budget went into the red they had to increase the license fee.

The governor said he had to make a tough choice and provide funding for state and local governments. That's what he did. He had no choice. He opposes this fee as well. Still, it's really tough political timing for the governor just a few days before the election -- Kyra.

PHILLIPS: Not only that, Frank, remember isn't there like a fog -- another fee you have to do with your car, also, like to check out -- you're getting paged over the intercom there. They need you to sell some cars in the back, Frank. Seriously, isn't this just one more fee to tack on, you have to get -- a smog fee, right? Smog check?

BUCKLEY: Oh, man, you know what it's like here, Kyra. We have various, various fees that we've got to pay when we buy a car.

But the good news, if there is any good news in this, is that this is the only fee that's going up when you buy a car. And again, it's just going up today. The problem is that it's going to hit you every year until this fee goes away so that, you know, every year you get a statement in the mail that says here's your license fee for this year. Well, that fee goes up as well.

And so there's no way for people to buy ahead to avoid this completely. You can avoid today's hit, but next year it's going to hit once again.

PHILLIPS: Oh, my gosh. our economist and correspondent and car salesman, Frank Buckley. Thank you, Frank.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com