Local dealerships oppose increased registration fees - KWWL - Eastern Iowa Breaking News, Weather, Closings

Local dealerships oppose increased registration fees

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WATERLOO (KWWL) -

For anyone looking to buy a new vehicle, buying now could save you hundreds. The Iowa Department of Transportation is looking to raise the new registration fee.

Every time someone buys a vehicle, there is currently a 5 percent new registration fee. The DOT is suggesting the fee be raised to 6 percent.

For James Gleason, Monday's visit to the dealership was an oil change. His next visit may be a different story.

"I will be coming out shopping before too much longer for another Chevy," said Gleason. 

But when Gleason buys his next vehicle, he might be paying a little bit more for his registration fee.

"I think 5 percent is plenty because we have plenty of road use fees right now," said Gleason.

The DOT says the new 6 percent registration fee would generate about $60 million each year for road construction projects.

Local dealerships say they're not too excited about the increase.

"Any time there's an increase in taxes or anything, I don't think it's a good thing, especially when you're talking about a high-ticket item like automobiles," said Jeff Smock, General Sales Manager at Rydell Chevrolet in Waterloo.

He says this new fee is something customers will take into account.

"I mean, obviously, a lot of business is need. You know, if you got somebody that just needs to have a car, they're going to buy one, but if you have somebody who wants or just upgrading or something, sure, they're going to take it into account," Smock said. "One percent of $30,000 dollars is a lot of money."

Sales experts at Rydell say as long as this fee is even across the board, then it probably won't be that big of a deal.

Smock says he has faith in the Iowa Automobile Dealer Association to lobby against lawmakers.

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