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Smart Shopper Carmax - What's Your Experience?
762 messages, Last post on Nov 14, 2009 at 11:37 AM
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Apparently, this whole "Buy a new car & get free sales tax" tax break probably will put Carmax back on track. I drove by the one near me and saw several cars went on test drives. I heard this break only effects on used cars? But I thought I heard Obama stating it was for both "New & Used?" I'll probably wait for that Scion iQ... I know its "concept" but there's so many Toyota employees who happened to be Scion owners also. They visit the same sites as Scion owners and they claim its gonna to be released as a model for 2010. Also, stated they are not going to have that same $20k sticker tag as the Smarts. Its so cool...If xD and Yaris were mated together; the offspring would be the iQ. LOL My carmax S.C. better not talk me out of it or I'm gonna see another salesperson from another dealership. I wouldn't feel right letting Carmax service it if I didn't buy from them. I know they will give me crap everytime I was there... LMAO |
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Replying to: Thul17 (Apr 11, 2009 11:02 pm) Maybe I've been living under a rock but I've never heard of that tax break. Here in NY that could equal several thousand dollars on a new car. Could you post a link or tell us more? |
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Replying to: Thul17 (Apr 11, 2009 11:02 pm) Currently if you itemize you can deduct sales taxes paid to the state, but if you do you lose the ability to deduct state income tax.
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Replying to: snakeweasel (Apr 12, 2009 5:42 am) The American Recovery and Reinvestment Act of 2009 which was signed into law by President Obama, on Feb. 17, 2009, represents a massive effort to stimulate the economy with spending and tax cuts. One tax provision designed to generate more automobile purchases is a new income tax deduction for state or local sales or excise taxes paid on qualifying 2009 motor vehicle purchases. People contemplating purchasing a new car or other qualifying motor vehicle this year are very likely to be quite interested in learning the details of this new temporary deduction. New temporary deduction. For purchases on or after Feb. 17, 2009 and before Jan. 1, 2010, the Recovery Act expands the definition of taxes allowed as a deduction to include qualified motor vehicle taxes paid or accrued within the tax year. ( The deduction generally is allowed to itemizers. It also is allowed to those claiming the standard deduction as an addition to that deduction. Only taxes on that part of a the qualified motor vehicles purchase price not exceeding $49,500 may be deducted. The amount of sales or excise taxes that may be treated as qualified motor vehicle taxes is phased out ratably for a taxpayer with modified AGI between $125,000 and $135,00 ($250,000 and $260,000 on a joint return). Old Law: Taxpayers had a choice of either deducting Sales and Use Taxes OR State and Local income tax. New Law: You can now deduct sales tax on a qualified motor vehicle even if you choose to deduct state and local income taxes. If you take the standard deduction and do not itemize - you get an increased Standard deduction for taxes paid on a qualified auto. You are only allowed a deduction UP to a $49,500 purchase price. So, if you buy a car for $65,000 you can not take the full amount of sales tax paid. Finally, if you make over $135,000 or $260,000 you are the Obama Wealthy and not allowed squat.
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Replying to: golic (Apr 12, 2009 6:53 am) For purposes of your federal tax return, the sales tax is a deduction and not a tax credit. Therefore it is not a dollar for dollar trade off. For example, if you purchase a $25,000 car and pay 6.5% sales tax of $1,625 you would get a deduction on your tax return for $1,625. Depending on what tax bracket you are in, that would determine your savings. If you were in the 28% tax tax bracket, your tax savings would equate a $455 tax savings. So, no where even close to being "FREE" |
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It also does nothing for those of us in states where we already can write off our sales taxes anyway, such as in Florida. There is no income tax in Florida, so we can write off our sales taxes. It is a benefit to those who write off their state income taxes and can now write off their sales taxes on the car purchase as well.
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Replying to: mitchflorida (Apr 12, 2009 10:19 am)
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Replying to: lemmer (Apr 13, 2009 6:16 am) |
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I just picked up an 08 Sebring at the Orlando Carmax and thought I'd post my experience. I'd been unsuccessful at getting my price with other local dealers, one that had a nice 08 Sebring Limited 4 cyl, and another that had a new 09 Sebring Touring 4 cyl that had some extra dealer cash. Neither wanted to give what I needed for a trade in. I checked their website and found an 08 Sebring Touring 6 cyl in Kansas City that was listed as a 4 cyl but the engine specs and pics showed it was a 6 cyl. The price was about $1300 less than other comparably equipped 6 cyl models. So either the local Kansas City market is way low or someone marked it wrong. Either way I had them double check to make sure it was a 6 cyl before paying the $599 transport fee. They appraised my truck, which was an 06 Tundra Limited, and came in right at what Volvomax indicated over in RWTIV, $14K. The price of the Sebring was $12K plus $149 processing fee plus $599 transport fee. So I decided to do the deal. They indicated it could take up to 21 days for the transport but it actually only took 14 days. The vehicle arrived Friday night and I went in yesterday to complete the deal. A quick test drive and walk around to make sure all the lights worked and nothing else unexpected and we go inside to complete the paperwork. They also had to re-appraise my truck since the original one had expired, no problems the trade in price was still the same. Since it was the weekend with the banks closed, I had to put in a backup finance application even though I'm going through my local credit union at 5.4%, closest they could come was 8.25%. So I've got some leg work to do Monday to get them the check. I'm going over the buyer's order and see this $24 fee for "Optional online filing fee". It's a fee that the state charges dealers for the convenience of doing online filing of the DMV paper work. I know it's only $24 but fees are a pet peeve with me so I ask to speak with a manager, but he would not take off the fee. I told him so much for no hassle and everything being disclosed up front. I said you actually have two processing fees, one for $149 that is disclosed and this one for $24 that is not disclosed. I'm open for suggestions on how to recover this. Other than dinging them on the survey and maybe taking this to corporate, not sure what else I can do. Also, the payoff of my trade in is $40 higher than what it should be so I need to double check this with SETF. Maybe this is another undisclosed fee. Overall, good buying experience, not great since it took 2.5 hours to do the delivery, and the $24 undisclosed fee. But I love the car and felt it was a great price, even for Carmax.
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Replying to: mikefm58 (Jun 14, 2009 3:42 am) Optional means optional.
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Smart Shopper Carmax - What's Your Experience?
