KIRKSVILLE, MO. -- The auto industry is hopeful they will get a boost with the newly passed stimulus package.
Beginning Tuesday, February 17th, if you buy a new car before the end of the year, you will get a tax deduction when you file your 2009 taxes.
There are a few stipulations you'll have to keep in mind, but the bottom line is it will save you money.
“If the customer would buy a vehicle, then they pay sales tax on that, and that sales tax will be deductible when they file their tax return. So what it's going to do is essentially lower the transaction cost of buying a new vehicle,” said Lovegreen Ford-Mercury General Manager Bill Lovegreen.
Lovegreen said he thinks this is what people want and it's a worthwhile plan.
He also said this puts a deadline on the purchase of a new car so it will have a quick impact on the auto industry.
Not only will this save you money, but it can help boost the local economy.
“When people pay sales tax, that gets cascaded down to the local level, whether it's county or the city level. And so hopefully it keeps that revenue up so if people continue to buy vehicles that revenue stays up. So that brings money into those entities,” said Lovegreen.
TV Station Profiles & Public Inspection Files forKTVO