As we near the last two state quarters available for existing tax credits, perhaps it’s not a bad idea to examine what hybrid tax credit qualifications are available.
According to a recent news story by ABC News Channel 13, KRDO.com, a deadline for available tax credits in the state of Colorado is looming. Governor Bill Ritter signed House Bill 1331 this week.
The bill will replace existing hybrid tax credits with a more expansive range of cars that are eligible to receive the credit, while phasing out other cars that are currently eligible.
Automobile manufacturers such as Toyota, Honda, and Ford produce hybrid vehicles that meet gas mileage and emission standards and qualify for a tax credit.
Although there are limits as to the amount of tax credits the federal government gives out. Once the manufacturer has sold 60,000 of a particular model the tax credit is no longer provided.
The state has an index discussing different aspects of the alternative fuel tax credit. Please see the web site to evaluate whether you would meet any of these tax credits when considering a hybrid purchase.
What does this have to do with the oil and gas industry here in Denver? I would answer that question in the most profound way I am able to come up with – it depends on how you look at it.
I believe every industry impacts the other, and, while this may factor into conservation of oil in the short term, it is important to note that oil and gas is utilized for so many other aspects of our everyday lives it is mind boggling to think about sometimes.
However, I think when prices are high as they were a year ago; consumers are prompted to take a closer look at how they personally use the most evident oil product in their lives and that is the fuel in their automobiles.
I fear, however, with the lower price of fuel at the pump in recent months, consumers are going back to their old behavior patterns, and the tax credit incentives may not be enough.
Showing posts with label Auto Credit. Show all posts
Showing posts with label Auto Credit. Show all posts
Sunday, June 14, 2009
Hybrid Tax Credit: 2010 Ford Fusion and Mercury Milan Highest
Boosting mpg is one thing, but just in time for tax season, the 2010 Ford Fusion and Mercury Milan promise to boost your rebate, too.
To the Ford Fusion hybrid’s list of highs—mpg, style, and fun factor in a hybrid—add one more: tax credit. Ford has announced that the hybrid Fusion and its mechanical twin the Mercury Milan qualify for the nation’s highest hybrid-vehicle tax credit, $3400.
But there’s a catch, and a well-timed one at that. Tax credits only apply to the first 60,000 hybrid vehicles sold by a manufacturer after January 1, 2006. Ford sold its 60,000th hybrid in the fourth quarter of 2008, and tax-credits have half-lives.
Therefore, beginning in the second quarter of 2009 (April 1), the Fusion hybrid tax credit will be reduced by half, to $1700, and by half again, to $850, in quarter three (starting October 1).
Honda and Toyota surpassed the 60,000-vehicle mark long ago and have already run through their draw-down periods, so buyers of their hybrids are no longer eligible for tax credits.
After April 1, 2010, there will be no tax credit on hybrid Fords, either. So if you were debating when to buy that hybrid Fusion, consider that buying before tax time this year will increase your credit substantially.
Buying the Fusion hybrid at the full tax credit also makes for an interesting comparison to the standard Fusion. Starting at $27,995, the hybrid’s standard-equipment roster is nearly identical to the $24,700 Fusion SEL’s.
The hybrid’s four-cylinder is a little down on power compared to the SEL’s, but the electric motor keeps them close in the stop-light drags, and who’s drag-racing hybrids, anyways?
Subtract the hybrid’s tax credit and it sells for $24,595, making the only real reason to buy an SEL in the next two months a serious lust for leather. Which we understand. It’s the same story for the Milan hybrid.
To the Ford Fusion hybrid’s list of highs—mpg, style, and fun factor in a hybrid—add one more: tax credit. Ford has announced that the hybrid Fusion and its mechanical twin the Mercury Milan qualify for the nation’s highest hybrid-vehicle tax credit, $3400.
But there’s a catch, and a well-timed one at that. Tax credits only apply to the first 60,000 hybrid vehicles sold by a manufacturer after January 1, 2006. Ford sold its 60,000th hybrid in the fourth quarter of 2008, and tax-credits have half-lives.
Therefore, beginning in the second quarter of 2009 (April 1), the Fusion hybrid tax credit will be reduced by half, to $1700, and by half again, to $850, in quarter three (starting October 1).
Honda and Toyota surpassed the 60,000-vehicle mark long ago and have already run through their draw-down periods, so buyers of their hybrids are no longer eligible for tax credits.
After April 1, 2010, there will be no tax credit on hybrid Fords, either. So if you were debating when to buy that hybrid Fusion, consider that buying before tax time this year will increase your credit substantially.
Buying the Fusion hybrid at the full tax credit also makes for an interesting comparison to the standard Fusion. Starting at $27,995, the hybrid’s standard-equipment roster is nearly identical to the $24,700 Fusion SEL’s.
The hybrid’s four-cylinder is a little down on power compared to the SEL’s, but the electric motor keeps them close in the stop-light drags, and who’s drag-racing hybrids, anyways?
Subtract the hybrid’s tax credit and it sells for $24,595, making the only real reason to buy an SEL in the next two months a serious lust for leather. Which we understand. It’s the same story for the Milan hybrid.
Consumers to Buy A New Car for Decent Credit Now
Buying conditions that favor consumers are not uncommon in an economic downturn.
Savings can be found on impulse buys and small-ticket items, and the more one spends, the better the savings become. That leads many to believe this is one of the best times ever to buy or finance a new car.
Stuart Lasser, president of Subaru Kia of Mount Olive, as well as three other dealerships, believes things are working both in favor of — and against — the consumer.
"You still need to have decent credit to be able to finance," Lasser said. "It's marginally better than it was two or three months ago, and easier than it was three or four months ago, but not as easy as it was a year or two ago."
Finding the right car at the right time is still the most important priority for any consumer, but it might make sense to shorten the time period a bit. If one had not planned on purchasing a new car until the end of this year, now may be the time to begin shopping around.
"There are some very low-rate programs from the manufacturers," Lasser said. "If you have decent credit right now, you can make a good deal for yourself.
"If your credit is really shaky right now but your car is running OK — keep driving it," Lasser said. "If you've been thinking about a new car and you have good credit, now is the time to look for one."
Prices are being cut, and direct rebates from manufacturers and dealerships are being offered. But the best way to cash in might be through financing. A good credit score now will make financing a new car cheaper than almost any other time.
"What's happened is the auto industry has slowed production," said David Ayers, president of Ayers Chevrolet. "They're heavily incentivizing cars to move along the line of production," he said of the various programs to attract buyers.
Ayers agrees that credit is still the number one thing to have in order before attempting to buy or finance a new car.
"A much higher standard is put on the credit score than there was a year ago," Ayers said. "It's important to have verifiable credit because a loan at a reasonable rate is hard to find."
The highest rebates are attached with the most expensive cars. The make and model does not affect the rebate as much as the price tag does.
Ayers sees it as a good time to get maximum value for a trade-in.
"Rental companies are holding onto cars longer because leasing is not as attractive as it once was," Ayers said. "The availability of fresh used vehicles is smaller than it once was. This has pushed the market for used cars up. A car today would have a higher trade-in value than a car in the same condition would a year ago."
"If you have a car you would feel comfortable selling to a relative or friend, now is the time to trade it in," Lasser said.
Not many dealerships are reverting to gimmicks or come-ons in an attempt to get people to purchase from them. Having an honest relationship, with decent rates and payments on time is all either side seems to be looking for right now.
"We've never been a dealership that has sold a lot of back-end products," Lasser said. "We don't put extras on the car unless people want them. Sometimes we sell extended warranties. We're just selling cars — not doing anything extraordinary."
Savings can be found on impulse buys and small-ticket items, and the more one spends, the better the savings become. That leads many to believe this is one of the best times ever to buy or finance a new car.
Stuart Lasser, president of Subaru Kia of Mount Olive, as well as three other dealerships, believes things are working both in favor of — and against — the consumer.
"You still need to have decent credit to be able to finance," Lasser said. "It's marginally better than it was two or three months ago, and easier than it was three or four months ago, but not as easy as it was a year or two ago."
Finding the right car at the right time is still the most important priority for any consumer, but it might make sense to shorten the time period a bit. If one had not planned on purchasing a new car until the end of this year, now may be the time to begin shopping around.
"There are some very low-rate programs from the manufacturers," Lasser said. "If you have decent credit right now, you can make a good deal for yourself.
"If your credit is really shaky right now but your car is running OK — keep driving it," Lasser said. "If you've been thinking about a new car and you have good credit, now is the time to look for one."
Prices are being cut, and direct rebates from manufacturers and dealerships are being offered. But the best way to cash in might be through financing. A good credit score now will make financing a new car cheaper than almost any other time.
"What's happened is the auto industry has slowed production," said David Ayers, president of Ayers Chevrolet. "They're heavily incentivizing cars to move along the line of production," he said of the various programs to attract buyers.
Ayers agrees that credit is still the number one thing to have in order before attempting to buy or finance a new car.
"A much higher standard is put on the credit score than there was a year ago," Ayers said. "It's important to have verifiable credit because a loan at a reasonable rate is hard to find."
The highest rebates are attached with the most expensive cars. The make and model does not affect the rebate as much as the price tag does.
Ayers sees it as a good time to get maximum value for a trade-in.
"Rental companies are holding onto cars longer because leasing is not as attractive as it once was," Ayers said. "The availability of fresh used vehicles is smaller than it once was. This has pushed the market for used cars up. A car today would have a higher trade-in value than a car in the same condition would a year ago."
"If you have a car you would feel comfortable selling to a relative or friend, now is the time to trade it in," Lasser said.
Not many dealerships are reverting to gimmicks or come-ons in an attempt to get people to purchase from them. Having an honest relationship, with decent rates and payments on time is all either side seems to be looking for right now.
"We've never been a dealership that has sold a lot of back-end products," Lasser said. "We don't put extras on the car unless people want them. Sometimes we sell extended warranties. We're just selling cars — not doing anything extraordinary."
Green Car Incentives For Israel Car Buyers
The eagerness to reward green car buyers for their purchases now looks likely to extend to Israel, where the finance ministry is planning new regulations on car purchasing according to Reuters.
The changes planned are meant to alleviate increasing air pollution as well as save energy costs. It is expected that the cars with the highest fuel consumption levels, such as SUVs, will face increased taxes and duties. Meanwhile, there will be discounts for people who buy hybrid cars and a scrappage scheme style payment for those that get rid of older cars.
Currently, purchase tax on many car models is 77 per cent of the car’s imported value - this percentage is expected to rise to 92 per cent. Fuel taxes have also been increased in recent weeks with further rises expected.
It’s a difficult time for car buyers in Israel, but with taxes on hybrids to be cut by 30 per cent, there is at least some light at the end of the tunnel. The Government hopes that people will be induced into buying environmentally friendly cars due to special tax reductions and to junk old cars that are more than 20 years old thanks to special rebates of 3,000 Shekels for getting rid of the older vehicles.
However, the concept has been criticised in some circles with critics pointing out that the reason so many owners do not buy newer cars is because of the high import duties and purchase taxes. There is also no mention of electric cars despite the fact that charge stations are being built in association with Better Place.
The changes planned are meant to alleviate increasing air pollution as well as save energy costs. It is expected that the cars with the highest fuel consumption levels, such as SUVs, will face increased taxes and duties. Meanwhile, there will be discounts for people who buy hybrid cars and a scrappage scheme style payment for those that get rid of older cars.
Currently, purchase tax on many car models is 77 per cent of the car’s imported value - this percentage is expected to rise to 92 per cent. Fuel taxes have also been increased in recent weeks with further rises expected.
It’s a difficult time for car buyers in Israel, but with taxes on hybrids to be cut by 30 per cent, there is at least some light at the end of the tunnel. The Government hopes that people will be induced into buying environmentally friendly cars due to special tax reductions and to junk old cars that are more than 20 years old thanks to special rebates of 3,000 Shekels for getting rid of the older vehicles.
However, the concept has been criticised in some circles with critics pointing out that the reason so many owners do not buy newer cars is because of the high import duties and purchase taxes. There is also no mention of electric cars despite the fact that charge stations are being built in association with Better Place.
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