Low prices, stimulus aid add up
Car buyers can get big tax breaks for going green until 2012.
If you are one of the few lucky Americans who is in the financial position to consider buying a car, now is a great time to do it.
Between automakers’ eagerness to bring in money and the various incentives in the economic stimulus package, you could save a bundle.
Struggling automakers
Automakers have already had to seek help from the government to stay afloat. They are more eager than ever to sell cars. They need to bring in profit and get inventory off sales floors.
Car companies are even offering employee pricing in many cases, which can get you up to a 10 percent discount. Also, check for rebates and other additional incentives with different dealers.
A little tax help
Anyone who makes less than $150,000 per year will qualify for tax breaks if they buy a car in 2009. “The stimulus bill gives consumers a state sales tax and excise tax deduction,” according to the Associated Press. This applies to any type of car, including foreign-made vehicles.
Kudos for going green
Incentives are even bigger for buying hybrid cars or other electric vehicles. Buyers could qualify for a tax credit of up to $7,500, and this incentive lasts through 2012.
Word of warning
Though the prices and incentives on cars are great now, loans are another story. The credit crunch is still in full swing. Even people with high credit scores will have trouble qualifying for financing for a while.
This is a good example of how the unstable financial system affects the economy as a whole. Banks reeling in credit lines has contributed directly to the mortgage crisis and the troubles in the auto industry.
Bottom line
Only high-end luxury models are available for lease nowadays.
So, if you have enough money to pay full price for a car or if you’re lucky enough to get a loan, now is a great time to buy a vehicle.
If you’re looking to lease a car, be warned. Leasing is virtually nonexistent right now.
Plus Ford isn’t asking for a Goverment handout! Good for them for sticking to good ole’ American values by not asking for charity from taxpayers.
Right now is a great time to buy a car, if you can get the financing. You may want to steer clear of GM or Chrysler for the time being, but if you want to do your patriotic duty and buy American, Ford may be the way to go.
This is good news. I just recently bought a car and it’s good to know I’ll be looking at a tax break because of it. On top of that, I managed to talk the dealer into dropping the price of the car by a grand. Let me tell you, they are absolutely hungry for buyers.