This week, the Senate has been adding all sorts of things to the economic stimulus bill passed by the House last week. One of the latest additions is one providing tax benefits when you buy a new car. Stock Market Funding reports on the provisions of the amendment:
The
amendment would allow individuals buying a new car using financing to
write down any interest payments they make during the year. It would
also let people claim the state excise tax they pay on the purchase off
their tax liabilities.
amendment would allow individuals buying a new car using financing to
write down any interest payments they make during the year. It would
also let people claim the state excise tax they pay on the purchase off
their tax liabilities.
It's too bad that the credit applies only to new cars. I'm looking for a used car right now, and would love a tax break. But it is not to be. With the requirement that car be new, there are no real advantages. By the time you pay the extra price and interest charges — not to mention consider depreciation — the tax benefits don't come close to being worth it. You're better off just buying a used car, if you need to buy. It'll save you a lot more money.
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