US consumers could get up to $4,500 toward new car

US consumers could get up to $4,500 toward new car

Budget-conscious Republicans in the Senate opposed it, along with environmental-leaning lawmakers who said it failed to encourage the purchase of high-mileage cars and did not apply to used vehicles.

finance.yahoo.com...
Rewarding the stupid? Again? Is that our national response to every problem?
Couldn't stand to not post this and couldnt find it in a search of prior topics.
This is so crazy! Expecting the 'conned'sumers to go into debt again?
For what, a few more miles per gallon? It takes way more fuel to
make the 'dang' new car, than to just drive the old one!
I wonder what it would take to really replace some of our outfits?
Probably several thousand more than any savings you would see!
All on credit and huge payments that we cant afford anyway!
Government Motors now open for business!
I'm all for energy efficiency, but rewarding the stupid connedsumer
for making their dumb purchase in the first place?
Yep, with our tax money no less!
He who controls the debt, controls the nation.
The banks of course, which have been taken over by the gubmint too.
Remember that, Mr and Mrs consumer!
www.ctv.ca...

Like here , you will have to establish wether you pay the tax on the car before or after the $4500 mark down is applied .

Bring it on! Considering I worked for a supplier to the auto industry before most of the plant was laid off, I think this is great. Once cars start selling again I'll get my job back.

A couple of caveats about this plan:

1.) You must already own a car that you will trade in towards the purchase of another car.

2.) The combined estimated Hwy/City MPG of your old vehicle must be assessed at less than 18mpg for a car or light truck. What this means is that SUV owners will benefit, or anyone driving a car older than 1975. This Tax Credit will not benefit anyone else.

3.) You have to trade in your old car that qualifies to purchase a NEW car, not a USED car with better gas mileage.

4.) You must have a Federal Tax Liability in excess of $4500 to reap the benefits of this plan. That means you need to have a Gross Income of $40,000 or greater to get the full benefit.

5.) This amount is not deducted from the cost of your vehicle. When you file your annual 1040 Claim with the IRS you are able to take this Tax Credit and apply it towards your Federal Income Tax Liability.

So, basically this plan benefits the Middle to Upper Class that love their SUVs and Hummers who can afford to spend another $50,000 on a new car, and make at least $40,000 a year in Gross Income. The only benefit that it has to everyone else is that it will be getting a lot of these gas guzzlers off the road, decreasing our nation's dependence on foreign non-renewable resources, and will help decrease our nation's carbon footprint overall. Those are good things, but the economic benefits do not benefit the Poor or Lower Middle Classes in any way.

[edit on 21-6-2009 by fraterormus]

Well I am in the market for a new car, I waited this long for it, so this will be great but as usual what we got in the white house is morons so nothing but dreaming.

So what if I dont want to buy I new car.....shouldnt I be entitled to 4500 bucks too?

Oh, and what happens to all those gas guzzlers that get traded in for these new cars? Obviously they're not gonna just destroy them, so they will just be right back on the road, in the hands of the people who cannot afford a new car.

[edit on 21-6-2009 by PokeyJoe]

Originally posted by fraterormus
A couple of caveats about this plan:

1.) The combined estimated Hwy/City MPG of the vehicle must be assessed at less than 18mpg for a car or light truck. What this means is that SUV owners will benefit, or anyone driving a car older than 1975. This Tax Credit will not benefit anyone else.

.

Why would it need to be older then 1975? My Jeep is 2006 and gets that

Originally posted by whoshotJR
Why would it need to be older then 1975? My Jeep is 2006 and gets that

Actually I dug up a couple more requirements/caveats about this proposed program (in addition to the ones I listed above).

1.) The vehicle must be in drivable condition.
2.) The vehicle must have been continuously insured to the same owner for at least one year immediately prior to trade-in. (You can’t just buy a $500 beater to qualify for the $4,500 Credit.)
3.) The vehicle must be manufactured in model year 1984 or later. (This is entirely due to EPA mpg data not going back that far.)
4.) The vehicle Have a combined fuel economy of 18 mpg or less. You can find your car’s combined EPA fuel economy at FuelEconomy.gov.

So, it doesn't have to be older than 1976 (matter of fact it can't be older than 1984), but I didn't realize that there were normal cars that got that bad of gas mileage that were newer than 1976! I'm both shocked and appalled.

So, assuming you have a 2006 Jeep Wrangler TJ 4WD, then it would qualify for the Credit if you have one of the two 6 Cylinder models. the 4 Cylinder model is right on the edge of the cutoff...that model may not qualify.