Auto tax break could boost sales by 100k cars - DodgeIntrepid.Net Forums - Dodge Intrepid, Concorde, 300m and Eagle Vision chat
 
LinkBack Thread Tools Rate Thread Display Modes
post #1 of 1 (permalink) Old 02-17-2009, 03:56 AM Thread Starter

 
Join Date: Oct 2008
Posts: 336
Feedback: 0 / 0%
                   
Post Auto tax break could boost sales by 100k cars

A $2 billion tax break that makes the sales tax on most new car purchases deductible through the end of the year will increase auto sales by 94,000 vehicles, a research firm said Friday.

R.L. Polk said it predicted the proposed government incentive — part of a $789 billion stimulus bill expected to pass today — will increase U.S. light vehicle sales by 94,000 in 2009, giving consumers an average rebate of $330 for each new vehicle purchased.

The Senate had originally passed a much larger $11 billion tax break that would have included allowing consumers to deduct the interest paid on new car loans. That would have resulted in an average tax break on a $25,000 new car of $1,500.

The smaller tax break was part of an effort to reduce the overall price tag of the stimulus bill by House and Senate negotiators.

The new car auto sales tax deduction is limited to consumers who have a gross income of $125,000 and $250,000 for couples and applies to new cars of up to $49,500.

Polk analyzed vehicle prices, sales tax rates, registrations by state, and income tax brackets to develop its rebate forecast.

Under the $11 billion plan, Polk estimates the average rebate would have been $1,250 per vehicle, and would have provided a sales boost of 359,000 units in the United States.

“Although the current tax incentive is not as generous as the initial one, it is nevertheless an encouraging measure. This incentive program could be even more successful if coupled with additional steps to boost consumer confidence that would drive more showroom traffic for dealers,” said Lionel Iron, director of consulting & analytics at Polk.

Auto sales fell 37 percent in January.

Western European governments are doing more to spur sales.

In Germany, consumers can receive a rebate of 2,500 Euros — equivalent to $3,200 — if they scrap their old vehicle when buying a new one. According to Polk, this German effort is expected to increase light vehicle sales by 200,000 units for 2009 and should push the German car market just above 3 million.

Various “Cash for Clunkers” proposals were considered in Congress but never added to the stimulus bill, with one offering up to $10,000 rebates on new car sales for trading in a car at least 10 years old.



More...
Auto Reporter is offline  
Sponsored Links
Advertisement
 
Reply

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the DodgeIntrepid.Net Forums - Dodge Intrepid, Concorde, 300m and Eagle Vision chat forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

Member names may only be composed of alpha-numeric characters. (A-Z and 0-9)

!!ATTENTION ADVERTISERS!! If you intend on advertising anything on this forum, whatsoever, you are required to first contact us here . Additionaly, we do NOT allow BUSINESS NAMES unless you are an Authorized Vendor. If you own a business, and want to do sales on this site via posting or private message, you will need to follow the rules. Shops, Stores, Distributors, Group Buys without being authorized will see your account terminated.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in










Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes Rate This Thread
Linear Mode Linear Mode
Rate This Thread:



Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome