Cash for Clunkers may have come and passed, but there are still great government incentives for new car purchases at Gee Automotive. If you act fast, you'll be eligible for the New Car Tax Rebate when you purchase a new vehicle before the end of the year. Obama's stimulus plan includes a 2009 federal income tax return rebate if you buy a new car, truck, motorcycle, or motor home before December 31, 2009.
What does this all mean and how do you save? Here are a few key points to help you navigate the New Car Tax Rebate waters:
The 2009 economic stimulus plan authorized new vehicle tax rebates for United States consumers. The rebate applies to state and local sales and excise taxes paid on up to $49,500 of the purchase of a qualified new passenger vehicle in 2009.
In order to receive the 2009 New Car Tax Rebate, you must purchase a qualified vehicle, such as a car, SUV, light truck, motorcycle, or motor home. The vehicle (with the exception of the motor home) cannot exceed a weight of 8,500 pounds.
The New Car Tax Rebate is a deduction, not a credit. This means, you'll pay for the purchase taxes when you buy the vehicle, but you'll be entitled to a tax return deduction, lowering your taxable income for 2009. Still confused? Don't be – just ask a Gee Automotive sales representative if you need further clarification.
Not everyone qualifies for the New Car Tax Rebate. The full deduction is only available to individuals making $125,000 or less. There is a partial deduction for incomes between $125,000 and $135,000, but anyone over $135,000 is excluded from the rebate.
And if you already purchased a car under the Cash for Clunkers program, you can still benefit from the New Car Tax Rebate!
Most importantly, the 2009 New Car Tax Rebate means Gee Automotive can help you get behind the wheel of a new vehicle and save a bundle in the process.
To learn more about the 2009 New Car Tax Rebate watch the Vehicle Tax Deduction YouTube Video
and be sure to visit www.IRS.gov for complete information.
As with any tax question, Gee Automotive strongly encourages all customers to discuss the 2009 New Car Tax Rebate with your tax advisor to see how it may effect your individual situation.
The CARS program ended sales with nearly 700,000 clunkers taken off the roads, replaced by far more fuel efficient vehicles. Rebate applications worth $2.877 billion were submitted by the 8 p.m. deadline, under the $3 billion provided by Congress to run the program.
President Obama signed into law a program National Highway Traffic Safety Administration(NHTSA) is calling the Car Allowance Rebate System (CARS). This is a government program that helps you purchase a new, more fuel efficient vehicle when you trade in a less fuel efficient vehicle. See the Frequently Asked Questions for more details.
While the CARS Act makes transactions on and after July 1 potentially eligible for credits under the CARS program, interested dealers and consumers may want to wait until all of the detailed issues that must be addressed in the implementing regulations are resolved and the final rule is issued. Issuance will occur around July 23. See Program Rollout
What is NHTSA doing to guard against fraud? Click here for more information.
You can see the new vehicles that are available for purchase through the Cash for Clunkers porgram.
SUMMARY POINTS
Four Important Things to Know About CARS
The Customer Assistance to Recycle and Save Program
1)Get Here Early! The bill passed by President Obama â€" often called Cash for Clunkers â€" provides $1 billion for the CARS program through November 2009. An estimated 250,000 vouchers will be issued on a first come, first served basis.
2)Four Key Qualifiers for Your Trade-in. Your trade-in must be in drivable condition, 1984 model or newer, get no better than 18 miles to the gallon, and be registered and insured for at least the past year. (Work trucks have slightly different requirements.)
3)What Can You Buy? Only new vehicles qualify, but they can be domestic or imported, purchased or leased. And the sticker price must be less than $45,000.
4)Avoid Scams. As the purchaser, you don’t have to apply for any part of the program, so don’t be lured by Internet scams. Gee Automotive is responsible for applying for the voucher, and we will help you understand the program . However, if you have any questions, we encourage you to visit the official government site, www.CARS.gov.
GETTING STARTED
There are two big questions you’ll want to answer before taking advantage of the CARS program.
First, how much is my current trade-in really worth? Gee Automotive strongly supports Obama’s CARS program because we believe it is important to get poor-performing cars off the roads. We also see the Cash for Clunkers program as a once-in-a-lifetime opportunity to get you behind the wheel of a new car at a fraction of the traditional costs.
However, we still want our customers to get the greatest value for their trade-in. We encourage you to bring your current vehicle in for an evaluation to see if the CARS program delivers you the best opportunity. If CARS is not right for your current vehicle, we can still help you with a traditional trade-in and get you behind the wheel of a new car.
Second, how do I know my car’s official MPG (miles per gallon) rating? The CARS program uses the statistics at www.fueleconomy.gov* to determine whether your vehicle qualifies for the Cash for Clunkers incentive. Although your 1989 Honda Accord might get 15 MPGs by your computations, the Estimated New EPA MPG is listed as 24 on www.fueleconony.gov. Given these numbers, your car wouldn’t qualify for the CARS program.
*Please note: there are two sets of fuel-economy numbers at www.fueleconomy.gov. Use the newer calculations when determining whether your vehicle qualifies for the CARS program. These newer calculations are listed under “Estimated New EPA MPG,� and use the “Combined� number.
THE NITTY GRITTY
Once you have determined your trade-in’s official MPG, here’s what you’ll receive from the CARS program:
To receive $3500, your new car purchase must beat the trade-in MPG by 4 MPG for passenger vehicles, 2 MPG for light-duty trucks, or 1 MPG for trucks more than 6,000 pounds.
For example, if you’re currently driving a 1985 Pontiac Bonneville, www.fueleconomy.gov reports that your car gets 18 MPG under the Estimated New EPA MPG. As long as your new car purchase gets at least 22 MPG under the Estimated New EPA MPG, you’ll receive $3500.00 for your trade-in.
To receive $4500, your new car purchase must beat the trade-in MPG by 10 MPG for passenger vehicles, 5 MPG for light-duty trucks, or 2 MPG for trucks more than 6,000 pounds.
For example, if you’re currently driving a 1985 GMC Caballero Pickup 2WD, www.fueleconomy.gov reports that your car gets 15 MPG under the Estimated New EPA MPG. As long as your new car purchase gets at least 25 MPG under the Estimated New EPA MPG, you’ll receive $4500.00 for your trade-in.
No matter what the circumstance, your new car you purchase under the CARS program must meet these minimum combined MPG ratings:
Passenger vehicle: 22 MPG
Light-duty truck: 18 MPG
Trucks more than 6,000 pounds: 15 MPG
Last, but not least, don’t forget to combine as many government incentives as you can. You can still get a $1700 tax credit for buying some hybrids (see qualifying vehicles at www.fueleconomy.gov/Feg/tax_hybrid.shtml) and even some clean diesel models (see qualifying vehicles at www.fueleconomy.gov/Feg/taxleanburn.shtml). Plus, you can deduct your sales tax on any new car purchased between February 17, 2009 and the end of the year (sticker price up $49,500).
Please contact your Internet Manager about qualifying for CARS, see below for contact information.
