Why It's a Good Time to Buy a Car

Low prices, stimulus aid add up

Car buyers can get big tax breaks for going green until 2012.

If you are one of the few lucky Americans who is in the financial position to consider buying a car, now is a great time to do it.

Between automakers’ eagerness to bring in money and the various incentives in the economic stimulus package, you could save a bundle.

Struggling automakers

Automakers have already had to seek help from the government to stay afloat. They are more eager than ever to sell cars. They need to bring in profit and get inventory off sales floors.

Car companies are even offering employee pricing in many cases, which can get you up to a 10 percent discount. Also, check for rebates and other additional incentives with different dealers.

A little tax help

Anyone who makes less than $150,000 per year will qualify for tax breaks if they buy a car in 2009. “The stimulus bill gives consumers a state sales tax and excise tax deduction,” according to the Associated Press. This applies to any type of car, including foreign-made vehicles.

Kudos for going green

Incentives are even bigger for buying hybrid cars or other electric vehicles. Buyers could qualify for a tax credit of up to $7,500, and this incentive lasts through 2012.

Word of warning

Though the prices and incentives on cars are great now, loans are another story. The credit crunch is still in full swing. Even people with high credit scores will have trouble qualifying for financing for a while. ... click here to read the rest of the article titled "Why It's a Good Time to Buy a Car"