Stimulus Package Saves Car Buyers Millions

DOYLESTOWN, PA – The economic stimulus package recently signed into law by the President will offer big incentives to new-car buyers.

A temporary provision added to the bill allows new-car buyers in 2009 to deduct state and local sales and excise taxes on that purchase from their taxable income.

“We’re happy to see our leaders taking this kind of action to get people driving again,” said Fred Beans, President of the Fred Beans Automotive Group.

“As an automotive dealer we’re thrilled to be able to offer our car-buyers something more than just great vehicles.”

This amendment offers quick – and direct – relief to taxpayers who purchase a new car. New-car buyers can deduct state and local taxes and any excise taxes charged on the first $49,500 of a car purchase.

This amendment is valuable to families because a car is the second biggest purchase most families make. It’s estimated that this deduction will save the average new-car buyer $1,500 towards the purchase of a new car costing $25,000.

“It’s targeted at saving American jobs and helping families buy the cars they need to get to work and take their kids to school,” Mr. Beans said.

The amendment is also expected to boost the American automobile industry, currently one of the biggest drivers of the U.S. economy. One out of every 10 jobs in America is auto-related. A collapse of a major U.S. automaker, such as GM, Ford or Chrysler, would further erode the American economy, given the huge network of suppliers, dealers, and other businesses and communities that would be affected.

As Pennsylvania’s largest privately held dealership group, The Fred Beans Automotive Group has a vehicle for every driver who is looking to take advantage of this valuable amendment.

Fred Beans has over 1,000 new cars, trucks and SUV’s to choose from with names like Ford, Lincoln, Mercury, Dodge, Chrysler, Jeep, Chevrolet, Buick, Pontiac, GMC, Cadillac, Saturn, Saab, Hyundai, Nissan, Subaru and Mitsubishi “We need this amendment for creating jobs, for consumers, and for the auto industry that is such a driver of our country’s economy — so we can get America rolling again,” Mr. Beans said.

*Congress approves 2009 new car tax deduction. New legislation allows for the following: • New vehicles buyers may deduct any state or local sales tax for new cars purchased before December 31,2009. • Deduction applies to new vehicles purchased up to $49,500. • To qualify for this deduction an individual must make less than $125,000 or a family must earn less than $250,000. • The deduction can be taken by both “itemizers” and “non-itemizers”.