Auto Loans Interest Break

For those of you looking to make a car purchase now is the time to do it. The United States Senate has voted to make auto loan interest deductible from federal income taxes. The proposal was pushed forward by the National Automobile Dealers Association for they know that if they start giving people a break on their taxes related to a car loan, then more people will think about possibly purchasing a car.

The auto loan industry has seen a drastic change in the amount of cars that have been sold throughout this declining economy. The big three car manufacturers had to go to the government to ask for help for they said that people are simply not purchasing cars in this economy. Not only that, but the auto loan industry is in even more trouble because they know that in this day and age the number of people who are just not paying their existing auto loans is growing by the day.

A conference committee will now look at the auto loan interest provision to see if it should stay in or not, and President Barack Obama will have his say as well. If it passes, those that purchase cars will be able to deduct their auto loan interest. They know that this is a great first step to getting people to take on auto loans in this day and age.

Auto loan interest has not been tax deductible since 1986, and many were upset to say the least when it happened. However, they know that in today’s economy they have to get people spending again, and this is the perfect way to do it. This will ultimately end up saving consumers thousands of dollars off of the price of their cars.




 

Back to  February 2009 Archives