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Archive for the ‘Car Buying’ Category

2009 Tax Incentives on New Car Purchases

Friday, November 20th, 2009

tax-credit-2008

Did you purchase a new car this year?  Well, it’s important to note that you can deduct local sales taxes paid towards a new car purchases made from February 17, 2009 to December 31, 2009.

Details

  • The deduction is limited to the state and local sales and excise taxes paid on a new-car purchase of $49,500 or less.
  • Individuals filers must have a  modified adjusted gross income between $125,000 and $135,000.
  • Joint filers must have a modified adjusted gross income between $250,000 and $260,000.
  • Tax incentives may be combined with Customer Cash, Dealer Cash or other rebates provided by manufacturers.
  • Select Ford, Chevrolet, GMC and Nissan Hybrids also qualify for a tax credit.  Honda and Toyota Hybrid tax credits are no longer available.

Click here to see the complete list of Hybrids that still qualify for the tax credit. One vehicle that really stands out to us is the freshly crowned 2010 Motor Trend Car of the Year, the 2010 Ford Fusion.  The Hybrid version gets a whopping 41 mpg on the highway and 36 mpg in the city.  Purchasing one will also get you a healthy $850 federal tax credit.

For more information, head to www.irs.gov.

Senate Approves an Additional $2 Billion, Keeping Cash For Clunkers Alive

Thursday, August 6th, 2009

Rejoice!  Cash for Clunkers received a refill of an additional $2 billion with the Senate’s 60-37 vote for the wildly popular incentive program, keeping the collective hopes alive for some 500,000 prospective new car owners.  Under obvious pressure from the Obama Administration, the Senate acted swiftly to nullify any chances of stalling the program, which has given the auto industry a much needed boost.  Analysts expect the additional capital to last until Labor Day, although the program is still scheduled to run until October 31st, 2009. 

Autoblog states that Detroit’s big 3 have received nearly half of the CFC pie, with Japanese makes coming in at 36.5% of all CFC sales. 

Ford’s Focus is on fire, taking the #1 spot for vehicles purchased via a CFC-approved trade-in.  And it’s easy to see why, with the Focus getting a solid 24 mpg in the city and a whopping 35 mpg on the highway.  Couple that with the eye-opening starting price, and you have one of the best deals going. 

If you were initially on the fence about buying a new car, it’s time to make the jump, because if our memory serves us well, just a few short weeks ago, “experts” believed that the the program would never run out of the money.   Labor Day is September 7th, less than 5 weeks away.  Act fast, if you have a clunker that meets the Cash for Clunkers criteria, without a shadow of a doubt, NOW is the best time to trade it in and get a brand-new, safer, more fuel-efficient car

Cash for Clunkers Still On…For Now

Tuesday, August 4th, 2009

Get $4500 for your clunkerAccording to various published reports, the wildly popular Cash for Clunkers program should receive the injection of an additional $2 billion in capital needed to keep car shoppers, dealerships and manufacturers happy.  July was a solid month for auto manufacturers, due no doubt to the droves of SUV owners salivating at the savings.

According to the LA Times blog post, the top five vehicles that have been purchased in the trade-in program are:

1. Ford Focus
2. Toyota Corolla
3. Honda Civic
4. Toyota Prius
5. Toyota Camry

Last week, the House approved the measure seeking an additional $2 billion.  And today, Senate Majority Leader Harry Reid remained steadfast in his assertion that the Senate would indeed approve the money needed to keep the program running before Congress goes on recess after this Friday.  We hope so.

Links
Use our Cash for Clunkers eligibility calculator to see if your car or truck qualifies.
Click here to start the search for your brand-new car.
Click here to see what you need to bring to the dealer.

Cash For Clunkers = CARS = Car Allowance Rebate System

Tuesday, June 30th, 2009

2010 Ford Focus
2009 Ford Focus

Cash for Clunkers, now officially known as the Car Allowance Rebate System (CARS), is a federal program designed to stimulate U.S. auto sales and improve the environment by providing an economic incentive for consumers to replace old, gas-guzzling vehicles with new, more fuel-efficient models, such as the 2009 Ford Focus and 2009 Ford Escape.

The main question we hear being asked is if certain cars are going to be eligible for trade in or not.  Well, Ford is taking the guesswork out of the process.  You can now find out if your car qualifies for the $3500 to $4500 vouchers with their new Qualification Calculator.

The way the program works is simple.  Say for example you have a 1990 Cadillac Fleetwood that as-new was rated at 15 mpg in the city and 23 mpg on the highway (according to adjusted EPA fuel economy estimates).  Your combined fuel economy works out to 17 mpg, one MPG below the 18-mpg limit specified by the bill.  Now, in order for you to receive the maximum $4500 voucher to use towards a brand-new car, you would have to purchase one that gets at least 10 mpg more than your old car.  In the 2009 Ford Focus’s case, it’s easy–it gets 24 mpg in the city and a whopping 35 mpg on the highway.  Combined fuel economy is 29 mpg, easily surpassing the government’s mandate.

So, not only do you get to put $4500 towards a brand-new 2009 Ford Focus, but you also get the added benefit of getting 12 more mpg than your old vehicle.  The national average for gas today is $3.03.  A 40-mile trip in your old 17-mpg vehicle would cost you $7.13.  The same trip in a Focus would only cost $4.18.  How can you argue with numbers like those?

Here’s another example for light truck, van and SUV owners: Let’s say you have a 1994 Chevy Astro. New, the Astro was rated at 15 mpg in the city and 19 mpg on the highway—running premium fuel, no less (ouch!). Based on adjusted EPA fuel economy estimates, that averages out to a combined 16 mpg. If you choose a 2009 Ford Escape, which achieves 20 mpg in the city, 28 mpg on the highway and averages a combined 24 mpg, you would be eligible to receive the full $4500 voucher as the new vehicle gets more than 5 mpg better fuel economy than the old one. On top of getting a huge government discount on a brand-new 2009 Ford Escape, you get cargo space comparable to the vehicle you’re replacing. It truly is a win-win deal. That is, unless you happen to be an inefficient and obsolete Chevy Astro.

Cars for Clunkers Frequently Asked Questions
Updated July 13, 2009

Q: Does my vehicle qualify?
If your car, truck or SUV gets a combined 18mpg or less, you will qualify for a voucher.  Combined mpg equals the average of your vehicle’s city and highway MPG ratings.  For example, a 1997 Ford Explorer gets 14/20 mpg for city/hwy, which averages out to 17 mpg.  This vehicle would qualify for a voucher.  Your vehicle also MUST be a 1985 model or newer.  It must also have passed the latest smog test. 

Q: Will the mpg be based on what my car is currently getting or what it got when it was brand new?
It’s impossible to get the individual fuel economy ratings from every single vehicle, so the current EPA ratings will be used to determine if your car, truck or SUV is eligible.

Q: Is there a website I can go to that will show me an official EPA rating for my vehicle?
http://www.fueleconomy.gov/feg/findacar.htm

Q: How long does the Cash for Clunkers Program last?
The program will start on July 23, 2009 and end on November 1, 2009.

Q: What happens to my car when I trade it in?
The dealership where you pick up your brand-new car will send your old vehicle out to get dismantled and recycled, further helping the environment.

Q: Can I buy my car back from the government?
No, because the idea is to remove the vehicle from public roads to make driving safer and cleaner.

Q: Can I trade my voucher in for cash?
No, the vouchers are only valid for new vehicle purchases.

Q: What brand of car, truck or SUV can I buy using the voucher?
Any vehicle that gets at least 2mpg more than your older vehicle in addition to a minimum combined fuel economy of 22mpg.  The vehicle must also cost less than $45,000.

Q: Can the voucher be combined with other incentives?
Yes, since the voucher is provided by the federal government, many manufacturer rebates and financing offers still apply.

Q: How much will I get if my vehicle qualifies?
See below:

Cash for Clunkers Summary
  Passenger Car Light Duty Truck Large Light-Duty Truck* Work Truck**
Minimum Fuel Economy for New Vehicle 22 mpg(EPA combined) 18 mpg(EPA combined) 15 mpg(EPA combined) Trade-in must be at least pre-2002
$3,500 Voucher Mileage improvement of at least 4 mpg Mileage improvement of at least 2 mpg Mileage improvement of at least 1 mpg or trade-in of a Work Truck. Replacement vehicle must be similar in size or smaller than trade-in
$4,500 Voucher Mileage improvement of at least 10 mpg Mileage improvement of at least 5 mpg Mileage improvement of at least 2 mpg  

* 6,000 – 8,500 pounds

** 8,500 – 10,000 pounds

Ford Employee Pricing Plus

Monday, November 24th, 2008

Just when you think Ford is done with its deals for the year, they comes up with something even more ground-breaking and unfathomable than before.  Employee pricing?  Check.  Pricing plus cash back on top of that?  Check.  How much?  Click.  As in click on the links below to find out how much you can save with the historical deals that Ford is offering to prospective shoppers.  We see hundreds of deals come across our desks here at CarsDirect.  But this one definitely stands out.  If you’re in the market for a car, truck, suv, or crossover, be sure to check out the deals that are now being offered. They very well could be the best you’ll see this decade.

Cars
2009 Ford Mustang – Employee Pricing Plus
2009 Ford Focus – Employee Pricing Plus
2009 Ford Fusion – Employee Pricing Plus
2009 Ford Taurus – Employee Pricing Plus

Trucks
2009 Ford F-250 Super Duty – Employee Pricing Plus
2009 Ford F-350 Super Duty – Employee Pricing Plus
2009 Ford F-150 – Employee Pricing Plus
2009 Ford Ranger – Employee Pricing Plus
2009 Ford E-150 – Employee Pricing Plus
2009 Ford E-250 – Employee Pricing Plus

SUVs
2009 Ford Escape – Employee Pricing Plus
2009 Ford Sport Trac – Employee Pricing Plus
2009 Ford Expedition – Employee Pricing Plus
2009 Ford Explorer – Employee Pricing Plus

Crossovers
2009 Ford Edge – Employee Pricing Plus
2009 Ford Taurus X – Employee Pricing Plus
2009 Ford Flex – Employee Pricing Plus