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Is a possible tax break enough incentive for you to buy a new car?

Asked at Massachusetts Street on February 6, 2009

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Photo of Lee Gerhard

“No. In this down economy, I don’t think I can afford a new car.”

Photo of Joe Sweet

“No. … I’m not sure that would help out the economy that much. I think folks need to save their money.”

Photo of Taylor Lowderman

“No, because I’m a student and that kind of thing doesn’t really have much of an effect on me when your parents buy your car.”

Photo of Amina Gordon

“Tuition is pretty high as it is, so I just don’t think I could afford it at this time.”

Comments

Flap Doodle 5 years, 10 months ago

Are they going to start making Model Ts again? If so, yes.

OldEnuf2BYurDad 5 years, 10 months ago

"I think folks need to save their money.”Saving is great, but saving will not revive the economy. Part of the problem is that when so many are losing jobs, etc., the rest of us join into the panic. We become frugal (again, not a bad thing for a person to do), which keeps money out of the economy, making matters worse.

repaste 5 years, 10 months ago

"thing doesn’t really have much of an effect on me when your parents buy your car.” says it all.

notajayhawk 5 years, 10 months ago

OldEnuf2BYurDad;Darn, you beat me to it by about 5 minutes!!! I was going to say the exact same thing!I was also going to note that this gentleman who is telling people not to buy cars 'cause it's not good for the economy happens to be a bicycle mechanic!!!(Sort of like listening to the president of General Motors tell you why you shouldn't ride the train.)

grammaddy 5 years, 10 months ago

I wouldn't buy a new car if I won the lottery right now. The big 3 are building crap and the waiting list for a Smart car is too long.

ohjayhawk 5 years, 10 months ago

I have less than a year to pay mine off. So, no... I'm quite looking forward to not having a car payment for a while.

jonas_opines 5 years, 10 months ago

"Saving is great, but saving will not revive the economy."D'oh! Where do you think that money comes from that is loaned out for business investment? In Macro terms Investments = Savings, and Investment is one of the things pretty much guaranteed, in the long run, to actually help an economy. Certainly more so than simply spending more on consumption. For an economy it's the difference between going to the grocery store for the next week's worth of meals and going to a restaurant for a single giant steak and tater.

Godot 5 years, 10 months ago

I would not trust this government to make good on a tax credit like that. A tax break, the mere thought of which sends Democrats to their therapists, could be nullified with the stroke of Obama's pen.

DMH1983 5 years, 10 months ago

Now if you could promise me that my job won't be eliminated due to budget cuts despiste our sick economy, then I'd consider it!

Flap Doodle 5 years, 10 months ago

babboy, since recent news suggests that many democrats don't pay their taxes, your point is moot.

Christine Pennewell Davis 5 years, 10 months ago

Well if they give me a tax break and the money to buy/ payoff the car the same day i buy it sure if not the answer is no.

webmocker 5 years, 10 months ago

Hmm. My car leaks from every orifice, the power windows are dead, the AC doesn't work, and the speedometer just broke. Maybe a tax break would push me to buy a new one. But I'll probably just use more duct tape for the leaks, hope for a cool summer, and use the sound of the engine to figure out my speed.

myvotecounts 5 years, 10 months ago

The way my budget works, I'll resort to getting a new car only if I can no longer afford to buy used. As the car salesperson explains it: They will take your existing car as a trade in, pay off your existing loan, and roll everything into the loan on a new car, and you don't have to pay any money up front. However, you are instantly upside down in loan-to-value, and will be in that trap for years, probably. Used cars are probably a much better buy in the long run, but you have to have the cash to purchase the car, or at least make a down payment. My fear is, a tax incentive to buy a new car will only increase the number of people who get talked into the expensive new car financing trap.

Flap Doodle 5 years, 10 months ago

prospector, wouldn't you feel much greener driving a Prius to Free State? ;)

jonas_opines 5 years, 10 months ago

O-Bob: Well, perhaps, but with Beer and Bourbon you also have to take into consideration the Prom Date Macro Effect as well. That being, the economy is going terribly, much like your prom date, but heady consumption of Beer and Bourbon, while not actually directly effecting either your date or the economy, will at least give you the mistaken preliminary impression that it Is actually going well, and so you will act like it is going well. And since a complex economy (and a prom date) relies to a great extent on Consumer (dater) Confidence, it will result in real benefit. So yes, certain consumables like Bourbon and Beer will help. But since Bourbon is better aged, consider saving it instead of consuming it anyway.

deskboy04 5 years, 10 months ago

I would buy a new car if they gave me a decent tax break. I like having a nice new vehicle.

Deja Coffin 5 years, 10 months ago

Maybe a buy one get one free deal or a 50% off coupon on double coupon day would get me to buy another car in the near future.

Kyle Reed 5 years, 10 months ago

snap_pop_no_crackle (Anonymous) says… babboy, since recent news suggests that many democrats don't pay their taxes, your point is moot.Hahaha...gotta say I'm sure that one stung a little bit. Nicely played Snap!

DMH1983 5 years, 10 months ago

Snap_pop_no_crackle,Awesome! Couldn't have been said better!

Mixolydian 5 years, 10 months ago

I'll do my part to stimulate the economy tonight. Oscars here in Topeka actually has Free State on tap. Woot.

mom_of_three 5 years, 10 months ago

Hubby's car is very used, but we are trying to get by with what we have. My parents bought me a very used, very old car, which I had to repay. My kids will be driving a hand me down from grandma. It would have to be a REALLY good taxbreak

kmat 5 years, 10 months ago

jonas - yes, the money we put into banks is what they use to lend out. BUT, if we all hoard our money and don't consume and just save and save, there won't be reasons for businesses to try to make and sell anything.the big banks that decided to buy the risky mortgages are screwed. Small and middle sized banks that didn't do all the risky, stupid cr*p are doing just fine and have money to lend. I know first hand, living with a banker. The majority of banks (which by the way had to follow govt regulations, unlike the mortgage brokerages) would love to lend money out. But, businesses aren't going to take out loans to grow or develop new product if no one is willing to spend any money.So just keep on hoarding that money. That's gonna solve this crisis.And yes, I will be buying a new car soon. And the tax break will just make it sweeter.

madameX 5 years, 10 months ago

I read somewhere else that the tax break is for 10% of the cost of the new car up to $1,500. So if the car costs over $15k then you can get less than 10% of the cost back as a tax credit. This would not be nearly enough to get me to consider buying a new car since I don't need and can't really afford one, but if someone was already thinking about it maybe a tax credit help them decide to? I don't think it's going to provide much incentive to buy new cars but I don't think passing it will hurt either. If people buy cars to get the tax credit then bully for them, if they don't then they won't be using the tax credit and the gov won't lose out on revenue.

jonas_opines 5 years, 10 months ago

"BUT, if we all hoard our money and don't consume and just save and save, there won't be reasons for businesses to try to make and sell anything."Well, before we go any farther, I was wondering if you understand the concept of a continuum, rather than all or nothing. From your post it does not appear that you do, but I'm willing to give you the benefit of the doubt due to the nature of posting.

kmat 5 years, 10 months ago

You assume everyone is always stupid. I never said it was all or nothing. Of course I understand what you are getting at. Yes, I understand that just spending and spending will not solve anything, but hoarding and not spending won't solve this crisis either.It was reported yesterday that the savings rate is at it's highest level in 6 years. Here is a link to the NYTimes from Monday that may help you understand why hoarding money isn't the answer. http://www.nytimes.com/2009/02/03/business/economy/03econ.html?bl&ex=1233810000&en=ab4c1e662116eb42&ei=5087See, people like me never went crazy buying stuff I couldn't afford and all my debt is paid off. I bought a moderate house I could afford, a car that was affordable, etc... People like me need to be spending money right now. “If households are shying away from spending, what’s going to cause businesses to start spending again?” asked Aaron Smith, senior economist at Moody’s Economy.com. "Putting away money and paying down debt may be good for one family’s kitchen-table economics, but the broader economy suffers in the short term when millions of families do it. "

jonas_opines 5 years, 10 months ago

I hardly ever assume that anybody is stupid on first contact, per my viewpoint. Sorry you think that I do, but your tone leads me to believe that you were inclined towards that anyway. However, if you were aware of what I was trying to say, then it was rather facetious to refer to it simply as hoarding money. There is immense economic support, opinion and comparative facts, that say that Americans as a whole do not save anywhere near enough as an aggregate. Suggesting that consumers save some of their income is simply not the same as suggesting that they hoard all of their money.

Flap Doodle 5 years, 10 months ago

Bad for TV stations?"Broadcasters are bracing themselves for the likelihood of three prime-time interruptions in three weeks, totaling at least three hours of prime time -- and ad breaks -- yanked."His economic stimulus package apparently does not extend to the TV networks," one network exec noted.Obama's reps have alerted broadcasters that the president will hold a news conference Monday, according to network execs. It's expected to eat up the first hour of prime time; that alone could cost broadcasters more than $9 million in lost ad revenue."http://www.washingtonpost.com/wp-dyn/content/article/2009/02/05/AR2009020503599.html?referrer=emailarticle

notajayhawk 5 years, 10 months ago

BABBOY (Anonymous) says… "Working hard and giving to others equals democrats."I believe you meant "Working hard but complaining someone else makes more money that you do and the government should take more money from those whining Republicans, who have the audacity to think they should be able to keep what they earn, so you can have what they have" equals Democrats.It's a common mistake."I mean do you ever hear about a democrat complaining about doing his part to support the government with taxes."Again, I think you meant to say "Have you ever heard about a Democrat complaining about being supported by the government?" Why would they (I mean you) complain?

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