SORRY Joe the PLUMBER, your leased work truck, used car for your teen driver or cash car purchase for mom-in-law, won’t get you anything under the proposed: American Reinvestment & Recovery Act!
Senator Miluski’sAmendment for the deductibility of interest and sales tax on auto LOANS misses 30-40% of the car buying public. Can you guess who wrote this legislation? While USED cars help the economy as their value improves with demand from American’s that can’t afford, or can’t get approved for a new car loan, the factory mavens haven’t figured out that helping people buy used cars will drive demand from the folks making those trades.
Leasing, typically a work-related purchase, also stimulates the economy, but since the finance arms of the Big 3 got clobbered with plummeting residuals when the price of gas strangled the demand for big SUV’s and trucks, you can appreciate their reluctance to endorse leasing. However, leasing actually stimulates the manufacturing at a faster rate than a 60-72 month loan, as most leasing clients turn their cars in 36-42 mos. intervals.
So, as you consider the latest pitch for saving the auto industry, please consider yourself dissed if you lease, pay cash or prefer to buy a used car.
OR, you can write your congress person or Senator using the letter below (Thanks Grant Cardone) and get yourself some tax deductions on your next car. Contact them at: www.house.gov. or Senate
HURRY WE STILL HAVE TIME!!!!
SAMPLE LETTER, FREE TO DOWNLOAD, EMAIL or CALL !
Dear ____:
The
American Recovery and Reinvestment Act being considered today contains a provision that would allow families to write off the sales tax and interest paid on a new car loan. While I agree with the premise of the bill, it fails to take into account the 30-40% of car buyers who either lease or pay cash for their vehicles. This bill as written does not offer any benefit nor incentive for these consumers to make a new car purchase.
Given the fact that many families lease their cars in order to keep monthly payments within their budget, wouldn’t it make more sense to incent new car transactions without regard to how it is financed? A tax credit that is a percentage of MSRP would include not only those who purchase their cars via a retail finance contract, it would also include the 30-40% of Americans who lease or pay cash.
In addition, a tax credit based upon MSRP would be easier for the public to understand and therefore better motivate them to consider getting a new vehicle – which I assume is the real objective of this bill.
In addition, maybe we could go back to President Obama’s position on oil independence and suggest a focus on vehicles getting better than 21mpg, as long as the American public is driving this initiative?
Yours truly,
_____________
btw: I nominate Sarah Lee: aka: MY CARLADY for CAR CZAR!
. www.mycarlady.com]]>