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Buy before Christmas or after Christmas

Discussion in 'Newbie Forum' started by Rhino, Oct 7, 2009.

  1. Rhino

    Rhino New Member

    Joined:
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    Vehicle:
    2010 Prius
    Model:
    III
    For complicated reasons, I can't get a Prius until Dec, 2009. Is there any benefit to waiting after Christmas?

    I don't have much experience buying cars.

    Any recommendations for a Northern Virginia Dealership?

    Thanks.
     
    #1 Rhino, Oct 7, 2009
  2. dwhutch

    dwhutch New Member

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    Location:
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    2010 Prius
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    V
    There is a sales tax deduction cars purchased by 12/31/09. If your state does not have sales tax then certain other fees can be deducted. Google “car sales tax deduction for 2009” to get more info.
     
    #2 dwhutch, Oct 8, 2009
  3. Rhino

    Rhino New Member

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    III
    Thank you thank you. That is a great tip. I am consulting my accountant right now. If it is applicable to me, and I don't see why not, I will get the car as soon as possible - but after Dec 1.
     
    #3 Rhino, Oct 8, 2009
  4. akamekon

    akamekon Junior Member

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    I know this is going to sound like an extremely dumb question, but would such a deduction make any "real" difference for someone like myself with very little taxable income to begin with?

    This is the first year that I will be filing taxes for, so that is why I'm asking this question. I don't believe it would be as beneficial for me (with <$5,000 taxable income for the year), because I am already paying very little taxes as it is...but I could be wrong (hence the question).
     
    #4 akamekon, Oct 8, 2009
  5. Rhino

    Rhino New Member

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    III
    The tax deduction is only applicable for the purchase of a new car. So if you make less than $5000, and it is your first year of paying taxes, but you can afford a $22K+ new car, you must have other sources of income. Maybe you need to revise that tax return. I advocate being completely honest with the government.
     
    #5 Rhino, Oct 9, 2009
  6. akamekon

    akamekon Junior Member

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    The reason for such a low income is because I have not had a job the entire year, and have recently acquired a new one, higher paying. As far as being able to afford a new car, I am quite sure of my ability to afford the car. I tutored throughout high school for pay, and have been saving for quite awhile. I am actually holding off on purhasing the car for a few months so that I can build a sufficient emergency fund, etc. And rest-assured, I am being completely honest with the government :).
     
    #6 akamekon, Oct 9, 2009
  7. Rhino

    Rhino New Member

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    III
    You are the only one who can answer your question. You make about $5000 this year. In previous years you make less. You want a car that cost about more than 4.5 times your annual income. I mean, if you really saved all that money for many years, why spend it on a Prius? Something like a Yaris which cost $14000 or so seems to make more sense - and save you like 2 years of income. There are many things in life besides a car. Music, girlfriend/boyfriend, iPods, phones, bicycles, vacations, - why spend 4.5 years of income on a Prius?

    For me, saving on taxes is like hypermiling. It is a hobby. Anything to reduce taxes, within legal limits, make me happy so it is always totally worth it. Then I take the money I save and give it to charity. So it is not about the money or time - it is a hobby.
     
    #7 Rhino, Oct 10, 2009
  8. akamekon

    akamekon Junior Member

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    N/A
    Thanks for the input Rhino. I have been strongly considering a less-expensive car (Civic DX) for the very reason you mentioned. The reason I am considering the Prius is because I plan on keeping this car for 10+ years, and thus a whole lot of want I "want" in a car is playing a factor.
    I really don't want this to devolve into some of the conversations about teen drivers have on the other forums, but I am a college freshman, still under much support from his parents. I have discussed this with them, and this is not a purchase I am likely to make very soon, particularly because of the fact I have a perfectly working vehicle right now (with the downside being the heavy cost of gas).
    In all reality, it could be argued that I maybe don't belong on this forum since I won't be purchasing the vehicle this year, but I do want to learn, and make the most educated decision I can. I am DEFINITELY not going to risk going in to debt over something as material as a car, and I realize the importance of having a life, haha, but I still do have a right to buy nice things for myself, provided I do it in a responsible way.
     
    #8 akamekon, Oct 10, 2009
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