It's Cheaper to Buy a Car in California Now
The sales tax has now been reduced by one percent, making it more affordable to buy a new or used car in the state.
The surcharge sales tax was implemented in 2009 as a temporary measure to help California balance its books and only passed because there was a hard end date.
Buyers of a new car in California today could expect to save $270, based on an average price of $27,000.
This was enough of a savings to quell purchases in late June - with buyers waiting for the tax reduction in July.
It has been suggested that these delayed purchases may have been responsible for an industry-wide vehicle sales slowdown in June, which softened as the month came to a close.

Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid
About The Author

Latest Weekly Car Buying Tips
August 2025
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July 2025
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- Best Car Deals by Category Jul 24, 2025
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- Cars With the Largest Rebates Jul 24, 2025
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- Best Car Deals for 4th of July 2025 Jul 03, 2025