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this post was submitted on 01 Jul 2024
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The competition is welcome. We need it to continue to drive innovation. At least in America, traditional American brands haven't put out anything interesting for years. Just the same models being rehashed, but slightly bigger and more fuel efficient.
Except the US will do everything possible to prevent them from being sold domestically, while still pushing their brands globally. This will lead to a further split in what’s available in the US vs ROW.
There is no way they will be able to prevent people from going to Mexico to buy them though. And that's what is being predicted.
Unless they come up with something that prevents them from getting DoT certification, sadly I can see them doing that. Or as long as they keep citing “national security” you won’t be able to.
Possibly.
Registration of prohibited car models is not allowed. You might be able to import them, but there might be punitively high tariff and it would not be legal to drive
There was literally an article about this being predicted to happen soon in this community a few days ago:
https://www.autoblog.com/2024/06/15/chinese-cars-are-pouring-into-mexico-and-the-u-s-is-worried/
Apparently, the people who actually make the laws aren't as sure about this as you are.
Yes they will. In Washington State, you have to pay WA sales tax to register a new car you bought in Oregon.
How is making someone pay sales tax stopping them from buying a car in Mexico? Unless they're going to stop all Mexican cars at the Washington border...
Because the tax for that specific car will be 300%
If you just enter the state with the car? I'm not sure what you're suggesting. Are Mexicans who drive their car from Mexico City to Seattle expected to pay this 300% tax? Are they going to check the citizenship of every driver?
You can’t drive a car that is unregistered. You can’t register the car in Mexico, get plates, come up here and expect to drive it around. Eventually when you have to register it, you’ll get a bill.
You can keep registering it in Mexico or you can register the car in a state that doesn't require residency like New York or Indiana.
So, again, unless you expect Washington to put up border check stations, I'm not sure how they can make people pay this tax.
This doesn't work as you getting pulled over with a WA ID in a car registered in Mexico is going to raise suspicions.
I'm not sure what you mean by raise suspicions. Is that legal or illegal?
It's illegal. You're required to register your car in your own state typically within 30 days.
Are you though? Your license needs to be for your own state, but I’ve never read anywhere that this applies to car registrations.
Yes pretty much across the board: https://www.carparts.com/blog/where-do-i-register-my-car-if-i-have-homes-in-two-states/#What_To_Do_If_Youve_Recently_Moved_Into_A_New_State
This references moving to a new state but the same rules apply whether you're moving to a new state or residing in the same state but buying a new vehicle.
That blog is a gross simplification and is not authoritative. Most of the time, you probably want to register your car in your state of residency, but if you scroll down just a tiny bit there are a whole list of states that allow you to register a car as a non-resident. All states respect cars registered in the other states, so if the vehicle is licensed and insured in one state and you have a valid personal drivers license, I see no reason why that wouldn’t work.
Because road funding is derived from car registration, states absolutely require you to register your car there if you live and use the car there. The fact that some states allow you to register your car with them even if it's not your primary residence doesn't negate this fact. That's likely for wealthy people who may have multiple homes and cars that they don't use in other states. This doesn't mean you can legally register your car in NY when you really live in Iowa to get away from having to register it in Iowa. Iowa is still going to want their registration fees and if police see you driving said NY plated car over and over in Iowa, you're probably going to get ticketed for it especially if you have an Iowa license.
The blog is a gross simplification compared to what? All you're offering is your personal theories on how things work.
Could you actually cite a law that roughly describes what you are claiming?
Here it is for Oregon. Every state will have its own version.
803.025 Violating title requirements; penalty. (1) A person commits the offense of violating vehicle title requirements if the person owns or operates any vehicle in this state for which this state has not issued title.
803.300 Failure to register; penalty. (1) A person commits the offense of failure to register a vehicle if the person owns a vehicle in this state and the person does not register the vehicle in this state.
https://www.oregonlegislature.gov/bills_laws/ors/ors803.html
You cannot register a car in New York without living there to avoid paying sales tax in the state you live in. Most states require you to pay sales tax based on your residency and where the vehicle will be primarily used. Additionally, registering a car in a state where you do not reside can be considered fraudulent and may lead to penalties.
Registering a car in Mexico also requires residency.
I understand the loopholes you are trying to find, but I promise you the penalties for getting caught will be worse than paying the tax.
Please don’t let my comments suggest that I support a large tax on these Chinese vehicles. I think everything is way too expensive and we need some competition.
Fine. Do it in indiana. We don't here. I don't need to try to find loopholes when A) they already exist and B) lawmakers are upset about it and are trying to close them.
Confidently incorrect.
Did you read the article I pasted? Can you explain why lawmakers are worried about this problem if laws already take care of it?
I see no pasted article link in this conversation thread.
And the reason why people are talking about it is because the fed is proposing tariffs on these cars, In addition to whatever state tax.
Let’s that the car is $10k imported. The fed charges a 100% tariff (suggested by Biden actually) so that gets passed to the consumer. Now the car is $20k, plus whatever sales tax you pay locally.
The reason people are talking about it is because this only benefits the local car manufacturers who won’t make a cheap car.
https://www.autoblog.com/2024/06/15/chinese-cars-are-pouring-into-mexico-and-the-u-s-is-worried/
The worry is that it will kill local competition.
It’s a free market in the US. I should be able to buy a Chinese car for $10k if I want too. If Ford can’t stay afloat, sucks to be ford.
You have a poor understanding of sales tax bud
Tariff *
you won't be able to register it anywhere in the united states; which means that you won't be legally allowed to drive it unless you garage it every night at a mexican address.
You think people with cars registered in Mexico have to go back to Mexico every night?
Mexicans can't drive their cars further into the United States than a 12-hour drive? You really think that?
it's required to by law; only presidents are allowed to break the law. lol
Please do show me the law that Mexicans have to return their car to Mexico every night. I would like to see this law.
California Health & Safety Code §§39024.6, 43150–43156, 43203.5, 43600, and 44200–44210
Nowhere does that even suggest that Mexicans have to return to Mexico within 24 hours if they drive here from Mexico. That's just not a law. I have no idea why you think Mexicans can't legally drive from Tijuana to New York City, but they can, despite that taking over 40 hours.
They can even drive to Toronto. That would take even longer. And then they can go back through Canada and through the U.S. and back to Mexico and they can stay in the U.S. as long as their travel visa allows.
I have no idea why you think they can only get 12 hours from Mexico by car before they have to turn back.
read it, it's right there in the law: the car has to be qualified by american import restrictions and standards; which these cars do not have and will never get.
the only way to legally drive is it is to return it to a garage out of state and all of the states have similar laws.
What does that have to do with how long a Mexican can keep their car in the U.S.?
Are you under the bizarre impression that a car has to be registered within 24 hours of crossing the border?
i think you're purposely missing the point; there is no such thing as 24 hour car registration and you cannot register a car unless it's garaged in the jurisdiction to intend to keep driving it in.
any car owner knows this so you're clearly no longer arguing in good faith and i don't see a reason to continue.
Yes. And you do not have to register a car right away.
Which is why Mexicans can legally drive to New York.
Are you seriously arguing that there are no Mexican cars in New York? Not a single Mexican has legally driven to New York?
We’re doing it now to support legacy industry, try to push development of local industry, and while there is a technological change going on. But we’re doing it at huge expense. Do you really think that huge expense will hold up after legacy manufacturers never show up for the race, lose their global market, and the rest of the world advances?
I’m calling it now: Conservative platform for the 2028 election cycle will be to end those protections, to give people more choice, and to let a few billionaires profit
This isn't protectionism for US companies it's protectionism for the automotive industry as a whole in the US including manufacturing and sales of foreign brands like Toyota, Hyundai, and BMW. Domestic companies only account for a fraction of cars built and sold here.
the 100% tariff enacted recently says otherwise
Well, that apparently means the government that did that doesn't agree with me.
Even at 100% the Chinese EVs can be sold cheaper here they will leak in slowly. Chinese EV goes for as little as $12k sooo even at 100% thats cheaper as the lowest cost EV here are almost 3x that
they're blocked in the united states and canada due to a 100% tariff and also mostly blocked in western europe using tariffs other protectionist means; there will be no innovation for you nor anyone that speak english natively.
English-speaking Africans: guess I'll die