Pepper
12-19-2004, 12:14 PM
Auto and bike dealerships and boatyards stand ready to supply the kind of "toys" that affluent adults buy for themselves and their families at this time of year.
And there is an added plum for big spenders to consider: tax breaks and other incentives make December one of the best months of the year for buying an automobile.
Whether it's a $75,000 Hummer H2 or a $27,000 retro Ford Mustang, there are several benefits to buying a four-wheeled gift in December, according to Kelley Blue Book's executive editor, Charlie Vogelheim.
Dealers need to meet annual and month-end quotas and sell last year's models to make room for the new ones. They, too, have pressing tax incentives for reducing inventory.
"Many manufacturers are offering cut-rate financing or rebates on most 2004 vehicles and even some 2005 models," he said.
Do your homework. "Determine what incentives are available on the cars you are looking at.
And also check the car's MSRP, dealer invoice price and the transaction value or what other people are paying for a new car this week. You can find all of these things on the Internet. Print them and bring them with you to the dealership," Vogelheim said.
If you are not the haggling kind, you can always request a couple of price quotes online from your local dealer.
Several sites allow car buyers to submit price quotes to several dealers in three quick steps. Going this route, you can get dealers to compete for your business without ever leaving your house.
"Armed with this information, wrapping up a new car in one of those giant red bows can be a reality this year," said Vogelheim.
If you really do want that giant red bow, Vogelheim said, check out www.kingsizebows.com, where they actually will sell you an individual bow for that one-of-a-kind holiday gift.
Buying a Hummer or a large SUV - or any vehicle that weighs more than 6,000 pounds - can also be a savvy move at this time of year for business owners. It's a gift that keeps on giving by providing a year-end tax break.
Although on Oct. 22 the government tightened a massive loophole available to anyone who used a vehicle weighing 6,000 pounds or more in their business at least 50 percent of the time, there's still an advantage to buying late in the year. But instead of being able to depreciate up to $100,000 of the cost, it's now been cut to $25,000.
"No matter when you buy it, [the IRS] is treating it as if you bought it mid-year and you can take $25,000 depreciation in the first year," said Mike Arnow, of Arnow & Associates in Glendale, Wis., a financial planning and tax consulting firm. Check with your tax professional to see how your individual tax situation is affected.
http://www.delawareonline.com/newsjournal/business/2004/12/19goodtimefordeal.html
And there is an added plum for big spenders to consider: tax breaks and other incentives make December one of the best months of the year for buying an automobile.
Whether it's a $75,000 Hummer H2 or a $27,000 retro Ford Mustang, there are several benefits to buying a four-wheeled gift in December, according to Kelley Blue Book's executive editor, Charlie Vogelheim.
Dealers need to meet annual and month-end quotas and sell last year's models to make room for the new ones. They, too, have pressing tax incentives for reducing inventory.
"Many manufacturers are offering cut-rate financing or rebates on most 2004 vehicles and even some 2005 models," he said.
Do your homework. "Determine what incentives are available on the cars you are looking at.
And also check the car's MSRP, dealer invoice price and the transaction value or what other people are paying for a new car this week. You can find all of these things on the Internet. Print them and bring them with you to the dealership," Vogelheim said.
If you are not the haggling kind, you can always request a couple of price quotes online from your local dealer.
Several sites allow car buyers to submit price quotes to several dealers in three quick steps. Going this route, you can get dealers to compete for your business without ever leaving your house.
"Armed with this information, wrapping up a new car in one of those giant red bows can be a reality this year," said Vogelheim.
If you really do want that giant red bow, Vogelheim said, check out www.kingsizebows.com, where they actually will sell you an individual bow for that one-of-a-kind holiday gift.
Buying a Hummer or a large SUV - or any vehicle that weighs more than 6,000 pounds - can also be a savvy move at this time of year for business owners. It's a gift that keeps on giving by providing a year-end tax break.
Although on Oct. 22 the government tightened a massive loophole available to anyone who used a vehicle weighing 6,000 pounds or more in their business at least 50 percent of the time, there's still an advantage to buying late in the year. But instead of being able to depreciate up to $100,000 of the cost, it's now been cut to $25,000.
"No matter when you buy it, [the IRS] is treating it as if you bought it mid-year and you can take $25,000 depreciation in the first year," said Mike Arnow, of Arnow & Associates in Glendale, Wis., a financial planning and tax consulting firm. Check with your tax professional to see how your individual tax situation is affected.
http://www.delawareonline.com/newsjournal/business/2004/12/19goodtimefordeal.html