Anthony Posted February 4, 2009 Share Posted February 4, 2009 Click Quote Link to comment Share on other sites More sharing options...
Pioneer Posted February 4, 2009 Share Posted February 4, 2009 Good to hear. Just bought a new one last Saturday. :happy feet: However, if I would have known this was coming, I wouldn't have taken the Ford Credit 0% financing, and took the bigger cash rebate. Oh well. Quote Link to comment Share on other sites More sharing options...
Extreme4x4 Posted February 4, 2009 Share Posted February 4, 2009 LOL............... oh well, I missed it by 4 months. Of course, I probably wouldn't have gotten the financing that I got, in November. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted February 4, 2009 Share Posted February 4, 2009 The vote was 71-26 to allow many car buyers to claim an income tax deduction for the cost of automobile sales taxes and interest payments on car loans. I'm sure that will be a great help with near 0% interest loans.................. Quote Link to comment Share on other sites More sharing options...
RangerM Posted February 4, 2009 Share Posted February 4, 2009 I'm sure that will be a great help with near 0% interest loans.................. Not only that, the bill undoubtedly has a sunset, therefore whatever interest deductions there are now, may not be there next year or the year after. It can be just as easily removed just like the credit card interest deduction was in the '80s. The cash rebate (in lieu of the 0% interest) is usually the better deal regardless. I guess it's sweeter now. Quote Link to comment Share on other sites More sharing options...
svtenthusiast Posted February 4, 2009 Share Posted February 4, 2009 I'm sure that will be a great help with near 0% interest loans.................. Near 0% interest loans for automobiles? Is this through a bank or ford credit? Quote Link to comment Share on other sites More sharing options...
johnjyi Posted February 4, 2009 Share Posted February 4, 2009 Good to hear. Just bought a new one last Saturday. :happy feet: However, if I would have known this was coming, I wouldn't have taken the Ford Credit 0% financing, and took the bigger cash rebate. Oh well. Actually, Pioneer, here's the way I read it. It would depend on several factors such as total amount financed at 0%, length of loan, your tax bracket, etc. The deduction is "above-the-line" so the net benefit is proportional to your tax bracket. Also, it's embedded in the stimulus bill. So, who knows what it will look like when it's final? Don't know if my comment helps any. Quote Link to comment Share on other sites More sharing options...
Anthony Posted February 4, 2009 Author Share Posted February 4, 2009 If this passes, don't count on there being 0% financing anymore. One more selling tactic to sell a loan at a higher interest rate. Quote Link to comment Share on other sites More sharing options...
FordBuyer Posted February 4, 2009 Share Posted February 4, 2009 Remember, in MI at least, cash rebates are taxed just like everything else. I leased three new Fords in a row and had to pay sales tax on every rebate I got, and the rebates were in the thousands of dollars. So making sales tax deductible will help. The sales tax on a $30,000 vehicle is considerable and then you get nailed on the rebates also. State budgets are getting killed by the low new vehicle sales big time. This is really a great time to buy a new vehicle, and too bad that when sales pick up the prices will be higher. Now is the time to buy just like now is the time to buy good, quality stocks at a very discounted price. For exaample, a buddy of mine just bought a new 2009 Focus SE. The vehicle stickered for about $17,000 and has Sync. He got it out the door including tax for $11,000 and some change. Used two year old Focuses are priced higher than that. He got it on Z plan but even anyone could have gotten that vehicle for about $800 more. I would imagine you could get a new Fusion SE for about $14,000 after rebates and deals. Quote Link to comment Share on other sites More sharing options...
mettech Posted February 4, 2009 Share Posted February 4, 2009 "...Mikulski's office put the cost of the tax break she sponsored at $11 billion for one year. It would apply to the first $49,500 in the price of a new car purchased between last Nov. 12 and Dec. 31, 2009. Individuals with incomes of up to $125,000 and couples earnings as much as $250,000 could qualify, including those who do not itemize their deductions... " Why the income limit? It cuts a lot of people out of the deal. How is that fair? Damn underachievers get all the breaks. Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted February 4, 2009 Share Posted February 4, 2009 "...Mikulski's office put the cost of the tax break she sponsored at $11 billion for one year. It would apply to the first $49,500 in the price of a new car purchased between last Nov. 12 and Dec. 31, 2009. Individuals with incomes of up to $125,000 and couples earnings as much as $250,000 could qualify, including those who do not itemize their deductions... " Why the income limit? It cuts a lot of people out of the deal. How is that fair? Damn underachievers get all the breaks. Good ol' Babs Mikulski. :rolleyes: Quote Link to comment Share on other sites More sharing options...
Ford Jellymoulds Posted February 4, 2009 Share Posted February 4, 2009 (edited) "...Mikulski's office put the cost of the tax break she sponsored at $11 billion for one year. It would apply to the first $49,500 in the price of a new car purchased between last Nov. 12 and Dec. 31, 2009. Individuals with incomes of up to $125,000 and couples earnings as much as $250,000 could qualify, including those who do not itemize their deductions... " Why the income limit? It cuts a lot of people out of the deal. How is that fair? Damn underachievers get all the breaks. Poor ole Rick Wagoners of this world have had their pay capped at $500,000 max as well by Obama, Rick won't qualify he might have to downsize without the cheap finance to a Chevy Daewoo Matiz. Now he to can feel the pain & experience what its like to drive one of his crap Korean junk cars GM Chevy force on average Joe to drive in Europe. Good news hopefully car sales will pick up, l can't see Warren Buffet selling his old Lincoln Town Car as tempting as the cheap finance is to him. Edited February 4, 2009 by Ford Jellymoulds Quote Link to comment Share on other sites More sharing options...
Mark B. Morrow Posted February 4, 2009 Share Posted February 4, 2009 Poor ole Rick Wagoners of this world have had their pay capped at $500,000 max as well by Obama, Rick won't qualify he might have to downsize without the cheap finance to a Chevy Daewoo Matiz. Now he to can feel the pain & experience what its like to drive one of his crap Korean junk cars GM Chevy force on average Joe to drive in Europe. Good news hopefully car sales will pick up, l can't see Warren Buffet selling his old Lincoln Town Car as tempting as the cheap finance is to him. I remember reading that Buffett did sell his Town Car. I think he has a Caddy now. Quote Link to comment Share on other sites More sharing options...
03 LS Posted February 4, 2009 Share Posted February 4, 2009 Remember, in MI at least, cash rebates are taxed just like everything else. I leased three new Fords in a row and had to pay sales tax on every rebate I got, and the rebates were in the thousands of dollars. So making sales tax deductible will help. The sales tax on a $30,000 vehicle is considerable and then you get nailed on the rebates also. State budgets are getting killed by the low new vehicle sales big time. This is really a great time to buy a new vehicle, and too bad that when sales pick up the prices will be higher. Now is the time to buy just like now is the time to buy good, quality stocks at a very discounted price. For exaample, a buddy of mine just bought a new 2009 Focus SE. The vehicle stickered for about $17,000 and has Sync. He got it out the door including tax for $11,000 and some change. Used two year old Focuses are priced higher than that. He got it on Z plan but even anyone could have gotten that vehicle for about $800 more. I would imagine you could get a new Fusion SE for about $14,000 after rebates and deals. Aren't you double counting here? You paid sales tax on $30000 but not the $21000 or whatever out of your pocket means you paid tax for the rebates already. On 2nd thought, you shouldn't even mention the $30k price if you are leasing. You should be paying sales/use (both at 6% in MI) tax only for your downpay (which includes the rebates) then monthly on your monthly payment. If it's not this case, you were taken by your dealers. Quote Link to comment Share on other sites More sharing options...
Ford Jellymoulds Posted February 4, 2009 Share Posted February 4, 2009 (edited) I remember reading that Buffett did sell his Town Car. I think he has a Caddy now. Did GM let Warren have it for free, or did they agree to cash in some of his out of circulation $$ in with George Washington on that they had to pri out off his wallet. I bet Cadillac lost a lot of money on the deal or it must be a very good car. Warren is having a bit of a late mid-life crisis he is into Harley's now. Edited February 4, 2009 by Ford Jellymoulds Quote Link to comment Share on other sites More sharing options...
Deanh Posted February 4, 2009 Share Posted February 4, 2009 If this passes, don't count on there being 0% financing anymore. One more selling tactic to sell a loan at a higher interest rate. its coming..and Presidents day it will be up to 72 months........ Quote Link to comment Share on other sites More sharing options...
Pioneer Posted February 4, 2009 Share Posted February 4, 2009 its coming..and Presidents day it will be up to 72 months........ It's up to 60 months on the '09 Fusion. Quote Link to comment Share on other sites More sharing options...
03 LS Posted February 4, 2009 Share Posted February 4, 2009 It's up to 60 months on the '09 Fusion. Hey Pioneer, looks like you can take the deduction after all. It would apply to the first $49,500 in the price of a new car purchased between last Nov. 12 and Dec. 31, 2009. Individuals with incomes of up to $125,000 and couples earnings as much as $250,000 could qualify, including those who do not itemize their deductions. Quote Link to comment Share on other sites More sharing options...
Pioneer Posted February 4, 2009 Share Posted February 4, 2009 Hey Pioneer, looks like you can take the deduction after all. I don't get it. What do you deduct? The amount paid in interest, the mount of sales tax, or the price of the vehicle? Quote Link to comment Share on other sites More sharing options...
FordBuyer Posted February 4, 2009 Share Posted February 4, 2009 Aren't you double counting here? You paid sales tax on $30000 but not the $21000 or whatever out of your pocket means you paid tax for the rebates already. On 2nd thought, you shouldn't even mention the $30k price if you are leasing. You should be paying sales/use (both at 6% in MI) tax only for your downpay (which includes the rebates) then monthly on your monthly payment. If it's not this case, you were taken by your dealers. I probably didn't explain it right. With a lease like I had, I had to pay sales tax on the $4,000 in rebates I got on my last Taurus and was included in the downpayment plus sales tax each month on lease of course. Now let's say I want to buy the new Taurus and it lists for $32,000. And let's say Ford is offering $4,000 in rebates and I pay $28,000 out the door. So I will pay sales tax of 6% on the purchase price and also sales tax on the $4,000 rebate. Quote Link to comment Share on other sites More sharing options...
Reigner92 Posted February 5, 2009 Share Posted February 5, 2009 Good to hear. Just bought a new one last Saturday. :happy feet: However, if I would have known this was coming, I wouldn't have taken the Ford Credit 0% financing, and took the bigger cash rebate. Oh well. What did you buy? Quote Link to comment Share on other sites More sharing options...
Pioneer Posted February 5, 2009 Share Posted February 5, 2009 What did you buy? '09 Focus SES http://www.blueovalforums.com/forums/index...showtopic=29846 Post# 13 Quote Link to comment Share on other sites More sharing options...
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