Several blogs have posted that the recent “clunker” rebates are taxable.  Right Wing News writes, “Yep, you read that right. In many states car buyers that turned in their “clunkers” for up to $4,500 off the cost of a new car are finding out that they have to pay state sales tax on the $4,500 too. And still others just might find out next year that they’ll have to pay income tax on that “free” government money. “

It’s true that the clunker money is subject to sales tax in most states.  The government’s official website for the CARS program clearly states in the FAQ section that the CARS credit may be subject to sales tax and encourages customers to check the laws in their state or to consult with their tax advisor. 

Why is the clunker money taxable?   The clunker credit is a REBATE.  Rebates, by definition, come off the bottom line - after taxes have been assessed on the selling price of the car.  The cash rebates offered frequently by the car manufacturers work the same way.  So do rebates on other products like soda, toilet paper and refrigerators.  Look at your grocery store receipt the next time you use a rebate coupon.

Perhaps the confusion stems from the fact that most people perceived the clunker money as a trade allowance instead of a rebate.  In most states, the sales tax on a car is assessed on the sale price minus the trade allowance (the amount the dealer gives you for your old car).   For example, if you purchased a new car for $20,000 and traded in your old car for $4,500, you would only pay sales tax on the difference of $15,500.  With the clunker rebate, you pay sales tax on the full $20,000, and THEN the $4,500 rebate is applied. 

The claim that consumers will have pay income tax on $3,500 or $4,500 rebate is completely FALSE!  The official CARS government website explicitly states that the CARS credit is NOT considered taxable income for the consumer.  It is, however, considered part of the dealer’s gross income.

Unfortunately, some blogs are spreading mis-information about the clunker program in an attempt to schmear the current administration as well as bash the car dealers.   Politics aside, I hope this post sets the record straight and eases people’s minds about the clunker money and taxes.

The Senate approved the extension of the Cash 4 Clunkers program today in a 60 - 37 vote.  President Obama gave it his official signature shortly afterwards, funneling an additional $2 billion into the program. 

Over 220,000 new vehicles have been sold under the Cash 4 Clunkers program since it officially began on July 1st, with the top seller being the Toyota Corolla.  Opponents of the program expressed concern that it would favor the Asian automakers, but approximately half of the vehicles sold so far have been American brands.

Not sure if the vehicle you have qualifies as a clunker?  Not sure if the new vehicle you WANT qualifies under the program?  The official CARS site (www.CARS.gov) has a nifty (if somewhat slow) tool that will tell you!  Check it out the CARS eligibility calculator at http://www.fueleconomy.gov/feg/CarsSearchIntro.shtml

If you do take advantage of the program, be prepared for extended wait times at the dealerships, which have been overwhelmed by the demand.  Also be prepared to provide additional paperwork, including the title to your clunker , your current registration card, and a detailed letter from your insurance company proving that the vehicle is and has been properly and continuously insured.  

Don’t want to spend hours at the dealership?  Want to get MORE than just the $3500 or $4500 rebate?   Let the car chicks at Women’s Automotive Solutions car buying service help you get the best deal without all the hassle! 

It looks like the wildly popular Cash 4 Clunkers program may continue - at least for a little while.  The House voted late Friday to funnel an additional $2 billion into the program.  (This may be the fastest bill ever passed by Congress!)  However, it still has to pass in the Senate this week, where Republicans who oppose the program may try to kill it.  If approved, tThe funds would be diverted from an energy program that was part of the economic stimulus package approved earlier in the year.  How long will this $2 billion last?  Who knows. 

If you have a clunker to trade in on a shiny new, more fuel-efficient model, contact Women’s Automotive Solutions car buying service  today, and let us help you get the best deal - no matter what the government decides!

The Cash 4 Clunkers program was suspended last night after just 6 days because they had already run through the $1 billion that was allocated for it.   At first, I was astounded that the program lasted less than a week, but then I did the math.  At $4,500 per deal, that’s about 222,000 cars.  With over 16,000 franchised car dealerships participating in the program, that’s only about 13-15 deals per dealership.  I’m actually surprised the money lasted that long!

But, it may not be over yet.  The government is reviewing the backlog of cars that dealers have already registered for the program to make sure they still have sufficient funds to pay for those cars.  President Obama announced that the program will run through the weekend, but dealers are still unsure if the money will be available and have stopped making deals until the White House confirms that additional funds will be available.  The car dealers are also lobbying congress to approve more funds to extend the program and help out the struggling automotive industry and overall U.S. economy.  

Will the Clunker program be extended?  We’ll just have to wait and see.  But, if you still have a clunker to get rid of, Women’s Automotive Solutions can still get you the best deal!  Just contact us at 704-248-8706 for a complimentary consultation to discuss your options!

The government released the final and official rules for the Cash for Clunkers (CARS) program today, and they included some much-need clarifications!  The good news is that the $45,000 price tag limit for the new vehicle to be purchased (or leased) applies to the base MSRP, not including optional equipment, dealer accessories, destination charge, taxes, tag fees, or doc fees! 

To learn more about the program and to see if you are eligible to take advantage of it, contact Women’s Automotive Solutions or visit the official government website, www.CARS.gov. 

If you think the new “Cash for Clunkers” program is going to help you buy a new car, think again.  Our government’s latest, misguided attempt at saving the environment and boosting the economy isn’t all it’s cracked up to be.

What is the “Cash for Clunkers” Program?
 
Cash for Clunkers, officially known as the Car Allowance Rebate System (CARS), is a federal program passed by Congress and signed into law by President Obama will provide a voucher worth up to $4,500 to consumers trading in an old gas guzzler for new, more fuel efficient vehicle.  The program is effective beginning July 1, 2009 and ending on November 1, 2009 (or when the funding runs out, whichever comes first).

Sounds pretty good, huh?  Well… maybe not.  The government vouchers for $3,500 or $4,500 are in replacement of — not in addition to — the ordinary trade-in value of the vehicle.  If your trade is worth more than $4,500, forget it.  If your trade is worth less than the voucher, then the program might benefit you.  But, it’s only good for purchasing a new car, not a used one.  Purchasing a good, used car will likely save you more money overall than buying a new car with the voucher.

What’s the Catch?

Your trade must also be drivable, must have been made in 1984 or later, owned, insured and operated by you for one year, and must get 18 mpg or less city/highway combined.  The trade vehicle must be crushed, not resold.  (The idea is to get them off the road) If that’s not enough restrictions for you, there’s more!  You must purchase a new vehicle with a sticker price of $45,000 or less.  If you buy a new passenger car, it must get at least 4 mpg MORE than your trade vehicle.  If you buy a new SUV, minivan or small truck, it must get at least 2 mpg more than your trade.  (Larger trucks have different requirements and restrictions.)  Only one voucher is allowed per person.  Confused yet?  Visit the government’s website (www.cars.gov) or call a Women’s Automotive Solutions consultant for more information.

Who could benefit from this program?

Critics of this program (myself included) argue that this program won’t benefit most consumers. It doesn’t apply to used car purchases, and most people who drive “clunkers” do so because they can’t afford a brand new car in the first place.  However, there are a few folks who could take advantage of it:

1.  People who buy a new vehicle once in a blue moon, drive it until it almost dies, and then buy a new one again.
2.  Students or young professionals driving an old, college clunker who now have a good job and are ready to buy their first, new car.
3.  Parents who bought their teenager a piece of junk and now want a shiny new car for themselves.

The good news is that the voucher is in addition to (not in lieu of) any dealer incentives and rebates available on the new vehicle.   If you are thinking about taking advantage of this program, contact a Women’s Automotive Solutions consultant to see if you qualify and if the program is right for you.  Even if it’s not, Women’s Automotive Solutions will get you the best possible deal no matter what vehicle you buy – or what you trade in.

Back in March, The Car Chick filmed a guest spot on the national TV talk show, “Daily Balance With Kim Jacobs“.  The Car Chick is one of two guests on an episode dedicated to attaining “financial balance” in your life. What did Kim and I talk about?  Smart car buying strategies, of course!  Kim interviewed me about what women (and men) can do to save time and money when buying a car, and about how Women’s Automotive Solutions unique car buying service can help!

The show will air Monday, May 18th on the Word Network (Direct TV channel 373) at 7:30am ET. It will also air on WTVI in the Carolinas on Wednesday, May 20 at 7:30pm ET!

“Daily Balance with Kim Jacobs” is a sixty-minute, informative and inspirational talk show that features guests such as actors, athletes, news-makers, and real people with interesting stories to tell about how they balance their lives. Suggestions on work-life balance, health-related topics covering food, beauty, fitness and the environment are provided by knowledgeable guests. 

Kim Jacobs is a woman who understands the need for balance.  She’s a motivational speaker, entrepreneur, wife and mother of five!!!   Kim is an awesome host, so keep an eye on her.  She may be the next Oprah!   Learn more at www.DailyBalanceWithKim.tv.  

Fort Mill, SC – Automotive entrepreneur, Michelle Lundy, has partnered with “Car Chick” LeeAnn Shattuck to turn Women’s Automotive Solutions into a national business opportunity.

Women’s Automotive Solutions is a totally unique car buying service.  It helps women find and buy the car they want while saving hundreds to thousands of dollars. The company saves women valuable time and takes the hassle out of buying new and used cars.

Lundy started the company in 2004 after 25 years of managing car dealerships. She watched hundreds of women become frustrated and pay too much when buying cars. Lundy created a system that helps women save time, save money, and get the car they want with out the stress and frustration.

Shattuck met Lundy in 2005 after seeing a brochure for Women’s Automotive Solutions. “I loved Michelle’s idea and the hot pink colors of the brand. All of my friends and colleagues hated and feared car shopping. So, I knew that Michelle had created a unique and valuable service. I wanted to be a part of it.”

Shattuck is a former management consultant and self-professed “car nut”. She brings fifteen years of Fortune 100/500 consulting and high-performance driving experience to the partnership.

The Car Chicks’ partnership has attracted interest nationwide for licensing Women’s Automotive Solutions. In spite of the current recession and depressed automobile sales, new clients are flocking to Women’s Automotive Solutions to save time and money on a new or used car. And, over half of those clients are men!

http://www.WomensAutomotiveSolutions to learn more about this unique car buying service.

Fort Mill, SC–Women’s Automotive Solutions, a national automotive consulting firm and car buying service, opened their new corporate headquarters in the vibrant, residential-commercial community of Baxter Village in Fort Mill, SC.

Owners and “car chicks”, Michelle Lundy and LeeAnn Shattuck, moved from Charlotte, NC to Fort Mill, SC for its charm and lower tax rates.  This tax savings helps Women’s Automotive Solutions offer low-cost automotive consulting services to their clients and licensees nationwide. 

Women’s Automotive Solutions is a totally unique car buying service.  It helps women find and buy the car they want while saving hundreds to thousands of dollars.  The company saves women valuable time and takes the hassle out of buying both new and used cars.  Interesting, half of their clients are men!

The company’s new address is 1701 First Baxter Xing., Suite 201, Fort Mill, SC 29708.  The telephone number, 704-248-8706, and website http://www.WomensAutomotiveSolutions remain the same.

“May you live in interesting times.”  With automobile sales down nearly 40%, tighter credit markets, and the Big Three American automakers on the verge of bankruptcy, this old Chinese proverb has never been more true.  (Even the almighty Toyota reported its first full-year loss in more than 70 years!)  The challenges facing the automotive industry today are unprecedented, and that can mean both challenges and advantages for the consumer.  Here are five things you need to know in order to successfully navigate today’s uncharted market:

 1.  Deals, deals and more deals!  For perhaps the first time in history, the supply of new automobiles far exceeds the demand.   Even after production cutbacks, there are still more cars than can fit onto already the overstocked dealer lots.  So, what do businesses do when they have too much inventory?  They have a REALLY BIG SALE!  The level of incentives, including rebates, financing specials and manufacturer-to-dealer bonuses, is astounding -  which is good news for you!  Even small, fuel efficient cars, which rarely need incentives to move, are being discounted.  Be sure to negotiate hard on the price of the car even before the incentives are applied.  The car dealers are hungry for your business, and they know they must compete to earn it.

2.  Beware of creative advertising!  When car dealers are desperate to make sales, they often get very creative with their advertising campaigns in order to entice you into their showrooms.  Offers such as “buy one, get one free” and “$12,000 minimum for your trade” may technically be valid, but they usually come with a stack of fine print that would make an attorney faint.  Be sure to weed through that fine print before signing on the dotted line.  And, remember the old adage, “if it sounds too good to be true, it usually is”.

3.  Credit is tighter, but still available.  Just six months ago, you could get a no-money-down auto loan with a credit score of just 650.  You will likely need at least a 720 credit score to get that same deal today.  The credit crunch has hit the automotive industry, with banks and manufacturer finance companies alike tightening the strings on subprime lending.  Rates on subprime car loans are higher and may require a 10-20% down payment.  You may have a hard time finding those longer 72 and 83 month loan terms, or you may pay a one to two point premium to get one.  However, if you have excellent credit, then you can take advantage of incredibly low rates for 36 to 60 month loans - under 5% at some credit unions!

4.  Fewer lease deals.  Over the past decade, insanely cheap lease deals have allowed Americans to drive far more expensive cars than they could otherwise afford.  Those days are over - at least for the foreseeable future.  The leasing companies are being killed by the number of vehicles coming off lease that have depreciated much more than expected.  Most manufacturers are raising lease rates or even suspending lease programs entirely.  Luxury car makers, like BMW, whose business depends heavily on leasing, will still have good lease programs – but probably not as good as they used to be.

5.  Watch what you buy.  Many cash-starved automakers are looking to cut costs by downsizing their lineups.  Manufacturers are canning poor selling vehicles, consolidating twinned models and even axing entire brands in order to stop the bleeding.  (See side bar for vehicles “on the chopping block”.)  So, is it still safe to buy American, even if it’s a steal?  Yes, it is.  Even in the event of a bankruptcy, the manufacturers will still do everything possible to honor your warranty, and mechanics will still be able to service and repair your vehicle.  (Heck, they still make parts for the Model-T!)  While there are no guarantees, vehicle makes and models always come and go.  It’s just part of the business.  However, the biggest risk is depreciation – orphaned vehicles typically lose their value faster than normal.

Truly, there has never been a better time to buy a car.  With great deals everywhere you turn, purchasing a new car can save you a ton of cash.  And, more importantly, it will also help revive our economy.