Dunnan on Dollars Personal Finance Tips from Nancy Dunnan
Car Deals and Tax CreditsMarch 7, 2009 - It's a good time to buy a new car, if you have money. Deals and discounts abound and local dealers are practically giving them away. Not surprising -- according to the sales tracker, Autodata, sales are at the lowest annual rate since December 1981. Hyundai's Assurance Plan One result of tanking car sales is Hyundai's "Assurance Plan" which addresses the fact that many Americans are afraid they will lose their job. If you buy or lease a new Hyundai and then lose your job in the next 12 months, will forgive the first three month's of payments and also allow you to return the car. They'll also forgive up to $7,500 in depreciation. The program runs through 2009 and perhaps longer. The BMW Program BMW has launched its own recession plan. It will make the first two payments on any model financed through BMW Financial Service. This incentive is good for payments up to $750/month and on 19 of the new 2009 vehicle, including most of the Series 1, 3, 5, and 6 as well as the X5 crossover and the M6 coupe and convertible. Financing rates range from 0.9% to 3.9%. The incentive ends March 31.
The Tax Break
The government's stimulus package is also helping buyers. It includes a federal income deduction on sales taxes on new cars purchased between February 17th (when the stimulus package was signed by President Obama) and December 31, 2009. Although the tax break does not apply to used vehicles, your car does not have to be a 2009 model. As long as you are the first owner, the deduction applies.
The deduction is for the sales tax on purchases up to $49,500. If you buy a vehicle that costs more than this you can still take the deduction on the tax that applies to the first $49,500 of the total price.
This is what is known as an above-the-line deduction. That means you don't have to itemize your deductions in order to claim it.
The deduction phases out for single taxpayers with adjusted gross incomes of $125,000 or more and for married taxpayers whose adjusted gross incomes are above $250,000. For Further Information - Nancy Dunnan
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Like what Nancy has to say? you might be interested in the new edition of her book:
How To Invest $50 To $5,000: The Small Investor's Step By Step Plan for Low-Risk, High-Value Investing |
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