From AIADA (American International Automobile Dealers Association) February 18, 2009 ...
"President Obama Signs Auto Tax Deductions into Law Yesterday...
President Barack Obama signed into law the American Recovery and Reinvestment Act of 2009. The new law contains a provision designed to entice auto consumers back into vehicle showrooms.
This provision applies to eligible purchases between February 17, 2009 and December 31, 2009.
Qualifying consumers may now deduct:
· State motor vehicle sales taxes
· Local motor vehicle sales taxes
· Motor vehicle excise taxes Consumer Qualifications:
· Individual taxpayers whose adjusted gross income is less than $125,000 per year
· Joint-filers whose combined adjusted gross income is less than $250,000 per year
· Itemizers and non-itemizers who may deduct taxes "above-the-line" on their federal tax returns.
· All new model year vehicles currently on dealers' lots that have no prior purchase history
· New passenger cars and light trucks retailing up to $49,500 may collect full tax deductions. For all vehicles above this price, consumers may deduct sales taxes on the first $49,500
· The vehicle must weigh less than 8,500 pounds total."
The above news couldn't have come at a better time! According to Automotive New, U.S. auto sales are at a 27-year low and for the first time in history, sales have fallen below the number of cars and light trucks in China!
We (Space Coast Honda) are trying our part to promote a sales stimulus in our market area with an Employee Pricing program on all new Hondas -- a little profit is better than none! Unfortunately, the age old law of "supply and demand" has raised its ugly head among many dealerships in the country, showing a significant amount of over supply and lack of demand for new vehicles.
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