The US car industry is in the worst shape since the early 1980s, with sales for some manufacturers off by more than 30% compared to a year ago. Credit has tightened by at the same time cash rebates and financing incentives have never been better. Truly, if you are in the market for a new car, truck, van, sport/utility or crossover vehicle, then taking advantage of these offers can save you thousands of dollars.
Tax Credit For New Car Purchases
Now the federal government is getting into the action as part of the $787 billion stimulus package signed into law by President Obama earlier this week. One provision in that package includes a $2.3 billion tax break for new car and truck buyers a move that could help consumers save several hundred dollars more on top of already deep discounts.
“This tax credit may make a new vehicle purchase more feasible for many consumers in the near future,” said Eric Hoffman, spokesperson for AWARE, a non-profit auto financing education group. “Auto buyers should educate themselves about financing before making a purchase. Shoppers should maintain a solid credit track record, and shop around for financing among several sources, including banks, credit unions, financing companies and auto dealers.”
Save Hundreds of Dollars
Taxpayers will be able to deduct both the local and state sales tax paid on new car purchases up to $49,500. The tax break will cover the purchase of any new car, domestic or foreign, through the end of 2009. Moreover, the deduction is treated as being “above the line,” which means that it reduces the amount of a filer’s taxable income. Eligible taxpayers must have an annual income below $125,000 for individuals or below $250,000 for families.
“Auto shoppers who are considering purchasing a car today or within the coming months should continue to educate themselves about the financing process,” Hoffman said. “Our research has shown that consumers who are educated and informed about the auto financing process are the most satisfied with their auto financing decisions.”
Free Tools to Help You Decide
Our sister site, SayLending.com offers consumers free tools to help them calculate how much car they can afford as well as monthly payments, interest rates and related loan terms. You can also get a free, no obligation auto loan quote to help you find the best rate on your new car. We always recommend that you secure your own financing before visiting a dealer to purchase a car, applying the cash rebate to your down payment while negotiating the lowest price for your vehicle.
Helpful article? Leave us a quick comment below.
And please give this article a rating and/or share it within your social networks.