Deals on wheels - Chicago Sun-Times
The loans are the first being offered to Chrysler buyers through GMAC, which took over financing duties from Chrysler Financial as part of Chrysler's government-backed bankruptcy filing. GMAC is receiving $4 billion of Treasury funds to support its new loans to Chrysler dealers and customers.
With 789 dealers targeted to be severed from the company, Chrysler already had the highest average incentive among automakers last month -- $4,159 per vehicle, according to auto research Web site Edmunds.com . Those targeted dealers, set to lose their franchises Tuesday, won't be able to take advantage of the new incentives.
GM ranked second in incentives at $3,783 per vehicle, while Honda raised its incentives to a record $1,626, according to Edmunds.com.
With the auto industry in turmoil and a president who favors auto-efficiency standards, car buyers are faced with a mind-boggling array of federal, local and dealer incentives.
For example, President Obama's 2009 economic stimulus package gives every taxpayer who buys a new car this year the ability to claim a deduction on their income taxes for the sales tax they paid. So if you buy a new car for $20,000 with a 6.5 percent sales tax rate, you will pay about $1,300 in taxes. You can reduce by $1,300 your taxable income when you pay your 2009 federal income taxes.
