Buyers Rush to Latch Onto Year-End Auto Deals & Expiring Tax Credits
Deals n' Offers, News
If you are looking to buy car, you should hurry NOW!!! The year-end auto-deals are mostly coming to an end.
General Motors Co. is offering deep discounts on its remaining Saturn and Pontiac vehicles. And a federal tax credit on purchases expires Friday. Dealers say buyers must complete a purchase before midnight Thursday to be eligible for the tax credit.
The federal tax credit on state and local sales tax began Feb. 16 with the economic stimulus program approved by Congress in January. Buyers can write off the taxes paid on the first $49,500 spent for a new car, light truck, motorcycle or motor home. This can potentially save thousands depending on their tax bracket. Some dealers said the tax deduction didn’t get a lot of publicity after an initial hype while the others saw an increase in showroom traffic in recent weeks.
As the sales-tax break expires, General Motors this week stepped up deep discounts designed to get remaining 2009 Saturn’s and Pontiac’s off dealers’ lots. The automaker will pay its dealer network $7,000 for every new Saturn and Pontiac remaining, provided the dealers move the vehicles to their rental or service fleets.
By selling the vehicles basically to themselves, dealers can sell the cars and trucks to customers at a discount, although technically the vehicles would be labelled “used” because the dealer is the first owner.
New York Times reports that Savvy shoppers, desperate dealers and automotive analysts alike are singing that tune, thanks to fat rebates, cheap financing and an enticing federal tax break for buyers set to expire Friday.
“I know we dealers always seem to say it, but with the tax benefits you’ll get, and the strong used-car values for trade-ins, this really is a great time to buy,” said Mark Normandin, owner and president of Normandin Chrysler Jeep on Capitol Expressway Auto Mall in San Jose. “Normally at this time we’re all looking to close out the year as strong as we can. But it’s been an especially difficult year, and dealers are willing to take some pretty thin deals to move inventory.”
So what are you waiting for? Grab a car now and save. If you are lucky, you may be able grab a car now and sell it in a week with some profit. You never know.