A NEW law is set to come into force in weeks and it will change the way drivers will buy cars at the dealership.
Americans will have to cover some additional costs before they get their hands on the keys to their new motor.
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Under the new rule, which is to become law on August 28, drivers will have to pay their sales tax at their dealership.
Currently, road users have a 30-day window to get their finances in order before making their first payment.
When the new law comes into force, dealerships will be banned from providing a 90-day temporary tag.
Instead, organizations will only be able to provide a 30-day tag for any car that’s still under a loan.
The new law will apply to drivers and dealerships across Missouri.
Officials feel that some drivers swindle organizations out of fees when they do not renew their temporary car tags.
“Temp tags should only be good for 30 days,” Trish Vincent, who leads the Missouri Department of Revenue, said.
Dealership owners have welcomed the pending law change.
“I believe it’s going to be a huge adjustment initially because a lot of people, especially in Missouri, they’re used to waiting 30 days and 45 days for the first payment,” Ray Council, a sales manager at a Cape Girardeau dealership, told KFVS-TV.
In Missouri, drivers risk $25 fines if they do not register and pay sales tax on their cars within 30 days.
The penalty will be issued on the 31st day after the car is bought.
Drivers who still refuse to register their cars and pay sales tax risk heftier sanctions.
The fine increases $25 every 30 days a driver is late, according to the Department of Revenue.
The total fine is capped at a maximum of $200.
Drivers can submit their sales tax payment via cash, check, or credit or debit card.
TEXAS LICENSE PLATE CHANGE
Meanwhile, a law in Texas means dealerships will stop issuing paper license plates.
The new rule came into force on July 1 and only four types of plates will be issued to drivers who have just bought a car.
One such plate is a temporary dealer plate, which is reserved for test drives.
Dealerships will issue a green metallic plate for any cars that are sold to drivers who do not live in Texas.
The plate for out-of-state buyers is valid for 60 days.
But, drivers who bought cars before July 1 will not be penalized retrospectively.
They have a 60-day window to change their plates.
Officials have warned that drivers who refuse to swap out their paper plate after the grace period could be fined.
The bill was put forward by politicians as a way of combating crime.
State motoring officials say the rule change will help crack down on fraud and bolster security.
