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New Car Tax Credit Added To Stimulus Package
GMAC Now Officially Requires 700-Plus FICO Score For New Car Loan
Breaking The Bank! Ford Puts Up The House And Barn, Seeks $18 Billion In Credit

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If FromaBuick6 has to watch one more Chevy commercial, he's going to punch Howie Long in the face
02/04/09

In reply to New Car Tax Credit Added To Stimulus Package
Fucking Senators. Always messing with my shit.
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beercheck
02/04/09

In reply to New Car Tax Credit Added To Stimulus Package
This whole stimulus package is the mother of all Ponzi schemes.
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beercheck
02/04/09

In reply to New Car Tax Credit Added To Stimulus Package
We're paying these dickheads for what, again?
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fodder650
02/04/09

@beercheck: To give us entertainment. Look if it wasnt for the Tom Dascles of the world trying to be commerce secretary and not paying their taxes. Or the Palins of the world fighting for the right to shoot Wolves from a Helicopter (i really need to move to Alaska). You wouldnt be distracted from the reality of the situation.

You know the whole each American owes $35,000 towards the national debt on top of their taxes bit. Well before the trillions spent this year at least.

So go back and watch MSNBC or Fox (your choice depending on how ya lean) and watch the silly people distract you by not paying their nannies taxes while running for public office.

We are electing Actors for the national stage. I hear the benefits are good
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beercheck
02/04/09

@fodder650: Entertainment? Do you know how many monkeys we could by for senator-money?
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Ash Clutchem, Pokey Master
02/04/09

In reply to New Car Tax Credit Added To Stimulus Package
I am curious about other places regarding sales tax. Are most people charged their full local rate for cars?

Where I live it varies by county, but we typically pay 1/3 to 1/2 of the normal sales tax on a car purchase.

And of that tax, only a portion is "state sales tax" (most of it is county and city)
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drewdrawshashtags
02/04/09

@Ash78: Yup, we sure do. The 7% will make you regret any big purchase!
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discontinuuity has left the Jalop until further notice
02/04/09

In reply to New Car Tax Credit Added To Stimulus Package
This doesn't really help me, since I'm a college student (tax exempt most years, or in the lowest bracket) and shopping for an old beater, if anything. My grandparents might be shopping for a new American car soon, though.
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fodder650
02/04/09

@discontinuuity: Are you saying you dont want to buy their old 88 Celebrity as your car?
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discontinuuity has left the Jalop until further notice
02/06/09

@fodder650: It's actually a 2004-ish Cadillac (the front-drive one, I can't remember what it's called). Either that or a GM minivan of similar vintage. They tend to buy cars more often than is really necessary, and sell the old ones to my parents/aunts/uncles.
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Ash Clutchem, Pokey Master
02/04/09

In reply to New Car Tax Credit Added To Stimulus Package
OK, here's your tax savings on a $25k new car at 3% interest. Let's assume a 15% overall/blended tax rate (not incremental rate), which is about typical for an average US household:

Payment: $449/mo
First year total interest: $685.66
First year tax savings: $102.95

Tax savings over 5 years: $292.96

So you're getting a whopping $300 back over 5 years. That should help offset a month's depreciation!
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Ash Clutchem, Pokey Master
02/04/09

@Ash78: 5-year amortization, btw. The savings will be a little better with a 6 or 7 year term, but the interest grows almost logarithmically.
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seoultrain
02/04/09

@Ash78: I was wondering what the numbers were, and was expecting them to be small, but WOW, that is miniscule.

I guess this is more of a sales tax deduction than anything.
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Ash Clutchem, Pokey Master
02/04/09

@seoultrain: Obviously if someone only qualifies for a 7% or 8% rate and does a 6-year term, they're going to get a LOT more back because of the extra interest. But still not in proportion to how bad the overall decision is :D

But just like bragging about a tax refund, it'll hook a lot of people.
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SlowMo (actually, there's no E on my R)
02/04/09

@Ash78: grrrrrr. MATH!

Math spoils fun
retarded policies too
why think Math?
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drewdrawshashtags
02/04/09

@Ash78: As I said somewhere else on here, with 7% sales tax here in Philly, I would save $1750 on the purchase, and then the interest on top of that. So a deduction of $2433.00 in 2009. That's a $365 tax savings in the first year. Not incredible, but not awesome either.

Agree with seoultrain though, I think this is about the sales tax.
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Ash Clutchem, Pokey Master
02/04/09

@DrewDisegnaDue: Yeah, I missed the bit about the sales tax earlier.

We pay 9%-10% sales where I live, but only 3-5% on car purchases (and only about half of that would be the deductible state portion). In PA you're charge full tax on autos?
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seoultrain
02/04/09

@SlowMo: Is that supposed to be a haiku?
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beercheck
02/04/09

@seoultrain: For the mathematically challenged, it kinda works.
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drewdrawshashtags
02/04/09

@Ash78: Absofuckinlutely. In fact, even if you buy it in another part of the state (where the tax is lower, 6% outside Philly and Pittsburgh), they charge you full tax based on your home address, to make sure you get screwed.
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SirNotAppearing
02/04/09

In reply to New Car Tax Credit Added To Stimulus Package
Now make my trade-in suv worth something, and then we might talk.
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SirNotAppearing
02/04/09

@b.r.h.: And price attractively enough that I would actually buy new over used. And I want floormats.

On second thought, just forget it.
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mytdawg
02/04/09

In reply to New Car Tax Credit Added To Stimulus Package
I want a CTS-V, they make them in my town, and I got no money. Can I has bailout?
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fodder650
02/04/09

@mytdawg: You can if you declare yourself a bank holding company

Look it up
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mytdawg
02/04/09

@fodder650: Sweeeet
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maximum-sienna
02/04/09

In reply to New Car Tax Credit Added To Stimulus Package
That G8 GXP is looking like a sweet deal now. BTW, what about used cars? Last time I checked, most dealerships sell used cars as well, can you can get loans on used cars.
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drewdrawshashtags
02/04/09

@(used) maximum-sienna: 100% buyers remorse free: I think the point is to stimulate manufacturing, not just sales, hence the "new only" bent.
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theeastbaykid
02/04/09

In reply to New Car Tax Credit Added To Stimulus Package
I've been encouraging my mom to get a new car (recently retired, I figure she owes herself something better than a 250,000-mile Toyota Previa she bought new when me and my sister were 12 and 8, respectively). Now seems like as good a time as any to do it. On the other hand, in the midst of the financiopocalypse, there's nothing cheaper than running a 250,000-mile Toyota that shows no signs of crapping out anytime soon.
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smalleyxb122
02/04/09

In reply to New Car Tax Credit Added To Stimulus Package
So a big middle finger to Chrysler buyers who get 0% APR.
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Ash Clutchem, Pokey Master
02/04/09

In reply to New Car Tax Credit Added To Stimulus Package
Seems pretty minor, but should resonate with people who don't: (a) do their own taxes and (b) make generally good financial decisions. And people in good financial shape won't pay more than about 3% interest on a new car right now, meaning the tax benefit is tiny.

Just like any realtor will tell you, they don't sell houses because of the interest deduction. It's just icing on the cake. Hopefully this tiny little bit of icing will be enough to change things.
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damnelantra™
02/04/09

In reply to New Car Tax Credit Added To Stimulus Package
must. pay. off... student. loans. neeed.... new. car!
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seoultrain
02/04/09

@damnelantra™: House/Condo first. Car loans kill your buying power.
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damnelantra™
02/05/09

@seoultrain: the wife has that avenue covered. also, no fun driving a lotus and street parking it...
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that ain't the way to have fun, son
02/04/09

In reply to New Car Tax Credit Added To Stimulus Package
Does this mean I can get a DTS with -0- miles yet some train collision damage for $500, out-of-pocket?

I cannot believe how little self-restraint there is in the average American consumer/politician. Let's not talk about responsibility...
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Jo Schmo
02/04/09

@Kelly the Mercedes killer: I guaran-damn-tee you would be the only one hooning a DTS around the track at LeMons...
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GreenN_Gold
02/04/09

In reply to New Car Tax Credit Added To Stimulus Package
Takes some of the joy out of 0% financing.

Makes it more like "employee pricing plus plus minus."
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Saboth
02/04/09

@GreenN_Gold:

That's what I was thinking. With so many dealers offering 0%, 1.9, 2.9%...this is only going to amount to a few hundred dollars unless you buy something close to 50k.
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drewdrawshashtags
02/04/09

@Saboth: With 7% sales tax in my area, I could save thousands on the transaction alone. If I buy a new 328i instead of a two year old off-lease used one, this could give me a nice benefit. Both will be $30G+, but with that 7% back on the new one I stand to save $2,500 on the sale alone (which I'll still pay on the used one)
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drewdrawshashtags
02/04/09

@DrewDisegnaDue: it would if it were a tax credit anyway. Damn reading...
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New Car Tax Credit Added To Stimulus Package

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