Why is now the best time to buy a car?
Sales Tax Deduction: If you live in a locality or state that taxes on the purchase of goods, as part of the Stimulus package, you can write-off the sales tax on your 2009 tax return. This can be done whether or not you itemize your deductions or take the standard deduction like the majority of taxpayers.
Huge Rebates: Many auto companies are offering employing pricing or huge rebates. Some, like Chrysler, are even offering both. Shop around, because the lure of employee discounts may not necessarily equate to the best deal.
Zero-Percent Financing: Ford and a few other automakers have started offering 0% financing, if your credit is good enough. Consider 0% financing as a great way to limit the risk of a vehicle purchase in this economy.
Government Backed Warranties: Chrysler and GM warranties are now being backed through the TARP on vehicles purchased starting in April of this year. This will continue as the companies are restructuring. Domestic automakers, including Ford, are eligible for this plan, but foreign automakers are not.
Payment Protection: Hyundai’s ‘Assurance’ and GM’s ‘Total Confidence’ payment protection plans promise to limit the potential loss that may come from those who are laid off from their jobs.
Future Inflation: With the breakneck speed in which the government is printing cash, it’s easy to speculate that future inflation will most likely be significantly higher than it is today. This means your cash today is worth more than it will be in a few years.
Stimulate the Economy: Sure, it may not do much for your personal finances, but at least you can take solace in knowing that you are part of the solution to our economic woes when you purchase a new car.