California's Two Percent VLF: "I told you I'd be back"

California motorists might be asked to once again pony up two percent of their car's value to help the state out of its current bind. When our current governor took office, one of the first things "Ahnold" did was to slash the vehicle license fee (VLF). Just like his Terminator movies, the two percent VLF is back as part of a budget proposal. What does it mean for you? If passed into law, you'd pay an additional $135 per year for every $10,000 that your car is worth. The state figures that your car is worth ten percent less each year, so you can do the math to figure about how big a hit you'd take if lawmakers go ahead with the plan.

When purchasing a new car, the added VLF is a relatively small part of the price you pay, but it all adds up and California's badly battered dealers hardly need another disincentive for buyers considering a new car.