|
Updated: 3:05 PM Feb 9, 2009
Auto Tax Incentive Not Intended for Used Car Sales
Harrisonburg, Va. In the hope of helping the struggling auto industry, $11 billion was added to the economic stimulus bill.
Posted: 5:52 PM Feb 6, 2009Reporter: Mary Pulley |
|
In the hope of helping the struggling auto industry, $11 billion was added to the economic stimulus bill. It offers tax incentives to people who want to buy a new car, but it does not apply to used car dealerships.
Local used car dealerships have expressed mixed feelings about the incentive plan.
Andrew Wiley, the owner of Consumer Auto Warehouse in Staunton, says he's thrilled about the tax incentives aimed at helping the auto industry. He says a benefit for new car dealers will mean a benefit for him as well, in the future.
After all, Wiley says every new car will be a used car someday. However, he wouldn't mind having some assistance as well.
"We're a tremendous part of the economy. There are twice as many of us as there are new car dealers, and we could use the help as well," says Wiley.
The U.S. Senate approve the amendment Tuesday, which would allow buyers to deduct interest payments on car loans, state sales tax, and excise tax.
For example, a couple looking to buy a car for $25,000 could save up-to $1,500.
"I think it's important that they stimulate the new car industry. I was in it for 14 years. So I think it's important. If they're not producing new cars, they're not producing any shelve-able inventory for us," says Chuck Johns, owner of Harrisonburg Auto Outlet.
Johns agrees that a payday for new dealers now will mean business for used dealers later, but he's not sure where the government would be able to fit additional assistance.
"In an independent operation, there are too many variables. I don't see where it could work, but I think that the stimulus plan for the new car dealers would definitely help the independents by creating more trade-ins than we really need," says Johns.
Nationally, car sales are down 27 percent. This incentive is expected to help save around three-million jobs.
- Lacrosse Murder Defense: Death Was Accident
- Watch: Atlanta Beating Victim: 'I'm the Brave One'
- Watch: New Victim in 40-Year-Old Murder Case?
- Watch: Missouri Teen Sentenced for Killing Neighbor
- Watch: Police Beat Man in Diabetic Shock
- Watch: Judge Orders Couple to Go on a Date
- Watch: Pregnant Teen Shoots Intruder Through Doggie Door
- Watch: Second L.A. Teacher Charged in Sex Abuse Case
- Watch: Plastic Heart Glows With Love
- Prince Harry Named Top of His Class in Apache Helicopter Training
- Watch: Zoo Simulates Rhino Escape
- Watch: Crane Reels in Giant Shark
- Watch: North Korean Musicians Channel A-Ha
- Watch: Inside Japan's Fukushima Exclusion Zone
- Watch: Tensions Rise as Iran 'Flexes' Its Muscle
- Watch: Kidnapped Americans Released in Egypt
- The Global Note: Desperation In Homs…A380 Safety Checks…The Lost Lake…Austerity Vacations
- China's 'Hero Cop' Placed on Leave



