Economic Stimulus for New car purchace?

[starann]

Is there some kind of tax break for purchacing a new car? HOw does it work.

DH and I are looking into a new car (I NEED a new car, as mine will die any day now and we refuse to put any mroe money into a car that has 193,000 miles on it!

 

[tileman]

Hope this helps.



The American automobile industry is currently one of the biggest drivers of the U.S. economy. Six million jobs are at stake in the American car industry and one out of every 10 jobs in America is auto-related. A collapse of a major U.S. automaker, such as GM, Ford or Chrysler, would further erode the American economy, given the huge network of suppliers, dealers, and other businesses and communities that would be affected. [This] amendment is not about bailouts. It's about jobs, jobs, jobs.

The amendment is simple. If you buy a new passenger car, mini-van, or light truck by December 31st of 2009, you will get a tax deduction for your sales or excise tax and the interest on your loan. A family would save about $1,500 on a $25,000 car, not counting the additional incentives from dealers.

This amendment also helps state governments. States rely on tax revenue from new car sales. In my home state and many other states the sales tax is around 6 percent, so on a $25,000 car the state gets $1,500 in revenue. New car sales are down millions per year from their averages. This means states are losing billions when they already are struggling. As people buy new cars states' tax revenues will increase.

This amendment is a big deal to families because a car is the second biggest purchase most families make. My amendment is targeted. Families with an income of more than $250,000 a year are ineligible. Cars costing more than $49,500 also are ineligible. This amendment also helps the environment because it gets more people into new cars and new cars are cleaner and more fuel efficient than old cars.

There are 20,000 new car dealerships nationwide. They employ a million people. Most people don't realize that dealers employ an average of 53 people in sales, mechanics, and administrative positions. I visited car dealerships in Maryland and heard from these employees.

Well, I say let's put money where it matters - where it creates jobs. That's why we need this amendment for creating jobs, for consumers, and for the auto industry that is such a driver of our country's economy - so we can get America rolling again."

 

[Gabes_mommy]

This is not tax break related, but if you buy an American car right now you will get an amazing deal. I just bought a new Chrysler Town and Country this summer and we got it for over $13,000 off the sticker price and that's including tax, tags and all the fees. It is truly amazing what a luxurious vehicle I got for a relatively low price.

Have fun picking something out. Remember in this economy you have a lot of power. I worked my deal for 5 days and I held out until they gave me what I wanted and boy did it feel great to leave the dealership knowing I got an amazing deal. It was worth all the haggling for sure.

 

[Golf4food]

There is also a new one Congress is still considering for replacing a gas guzzler with a more efficient vehicle. The amount of the credit differs by how much more efficient the new vehicle is and whether it is a car, truck, or SUV, etc. But the amounts are in the thousands. Some limitations. Nothing final yet, but if you think you might meet the requirements you might could hold off a few days and see if it passes... not really an option if your current vehicle is truly about dead, though.

http://www.msnbc.msn.com/id/31183767/

 

[GatorGal]

Hope this helps.

The amendment is simple. If you buy a new passenger car, mini-van, or light truck by December 31st of 2009, you will get a tax deduction for your sales or excise tax and the interest on your loan. A family would save about $1,500 on a $25,000 car, not counting the additional incentives from dealers.

It's my understanding that the credit is available regardless of wheter you itemize or not and is in addition to the sales tax deduction already available and available to those who live in states that don't have sales tax, they can deduct fees and other taxes based on the car's purchase price. It's computed on cost of car upto 49,500 and is phased out for taxpayers with agi over 135,000 (260,000 for married filing joint)

I'm not aware of any deduction being available for the interest on the loan.

 

[SAHDad]

There is also a new one Congress is still considering for replacing a gas guzzler with a more efficient vehicle. The amount of the credit differs by how much more efficient the new vehicle is and whether it is a car, truck, or SUV, etc. But the amounts are in the thousands. Some limitations. Nothing final yet, but if you think you might meet the requirements you might could hold off a few days and see if it passes... not really an option if your current vehicle is truly about dead, though.

http://www.msnbc.msn.com/id/31183767/

The problem with the "cash for clunkers" bill is that the voucher is in place of any trade-in value your old vehicle would have (since the old vehicle must be shredded or otherwise destroyed.) So, unless your car is pretty old, you might get a better deal with a conventional trade-in.

(On the plus side, they forgot to limit it to American cars, so it would be good for Honda, Toyota, etc vehicles as well.)