I just got off the phone with a buddy of mine and his company own a few new car dealerships and he said the "rumor" on the street is the federal government is trying to make it so you can buy a new car/truck etc. for like 10 days in the month of December with no sales tax!!!!!!!!!! That's huge here.....we have 6.5% where I live.

I just wanted to see if anyone else has heard this?

 

said she heard about it here in Las Vegas, though it would be on everthing. Something to stimulate sales for the Christmas holiday. The car dealers will get it back from you one way or another. I'd love to trade up my truck but I know right now they'll low ball me pretty good on the trade-in.....maybe the wife will get a new car though or like new 1999 truck

 

I have heard this rumor a few times over the last month....it was talked about by a few congressmen/senators as a possible addition to the economic stimulus package. Don't hold your breath.......this would require secondary approval at the level of each state. The idea would be for the feds to reimburse each state for the lost sales tax. One problem is not all states have sales taxes, and those that do differ widely. Some cities also tack on a city tax. Imagine all those groups agreeing on some "fair" solution. Long-winded way of saying "don't hold your breath". What may have a better chance of passing is an employment tax holiday.......they're talking about a month-long holiday where no soc. security tax will be taken out (it's unclear what will happen to the employer's portion......will they pay it to you, or will they pocket it?). Time will tell.

Cheers
ernie

 

Ernie, you hit the nail on the head. For some time, a sales tax holiday was proposed by the federal government as a stimulus to the economy. The fed gov would pay the state gov for the lost sales taxes. The short story is, it won't happen because each state would also have to agree to it individually (and some state legislatures only meet every other year), and some localities also collect sales tax (for example, when I lived in CO in Fort Collins, the sales tax rate was 6.5 percent or so. 3% was state tax, the rest was local. It varied from city to city, and even within cities depending on taxing districts). Will every city also agree? It ain't gonna happen.

Now if a state decides to do it, thats different. Several already do for various reasons, like back to school shopping, or Christmas.

Flat out, there are too many inequalities in sales taxes between different states to make it work out. For the states with no slaes tax, where's the benefit? Some of the same arguements can be made for the keeping internet sales a Tax Free Zone. Who can keep track of all of the differences in sales tax from state to state (and then city to city)?

 

If this was to pass, the car dealers aren't losing anything. It is a sales tax, not a car dealers tax, why would they care?

 

IF the dealership knows your going to save $1500 by not paying sales tax, not to mention the several thousand you'll save with no interest, don't you think it's possible there going to be less inclined to come off quite as much off the MSRP?

Seems possible, if not likely to me!

 

they wouldnt like it if that happens and i go in to buy a new truck on aplan. not much they could do there. it would be nice to stick it to them for a change

 

Now that would be a kicker! My county is looking at a 44 million dollar shortfall and is looking at raising the sales tax from 7.25% to 7.75% along with increasing the mortgage filing tax and on and on.. this plan would could be a real problem on the local level. hmmm.. maybe it is time to trade in the van... hmmm...

 

won't happen. bought 2002 yesterday. Don't even think about trading now due to so many people buying with 0%. Hiighest trade offer for a mint 98 f-150 SC 4x 2 with 118000 miles was 7500. I now own two trucks. Gonna sell it myself. Did get new truck for invoice.

 

You wanna stick a dealer? Good luck.... they weren't born yesterday....

 

If you're going to purchase a truck on the A or X plan, please tell me why a dealer would care if the sales tax was 0% or 60%. How in the world are you "sticking" it to the dealer?

 

Exactly, if you are buying x or a plan, the reason the dealers don't like it is because the amount of gross profit is then set, they have no opportunity for the sell. If you think a or x plan has no gross profit for the dealer, you're dreamin'.....

 

the dealer gets about 3% on aplan,but they cannt jack the price around because its set

 

is it possible anymore to negotiate on price with dealers?

 

Yes, buying a car from a dealer is a complete exercise of negotiation skills.