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| Tax incentives may not be saving grace |
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| News | |||
| Written by Robin Hixson | |||
| Wednesday, 18 March 2009 08:00 | |||
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Area new car dealers are saying the tax incentives included in the American Recovery and Reinvestment Act for new car purchases may not jump start sales as well as was hoped. Louisburg Ford Sales Inc. General Manager Jason Gudenkauf said the savings comes in the form of a federal income tax deduction of paid sales tax and motor vehicle excise taxes on purchased new vehicles. “It will help, without a doubt, but I don’t think it’s going to make the immediate impact that people might expect,” Gudenkauf said. “The whole reason is that the people won’t feel the impact right away. They have to wait until taxes are due a year from now. So they’re not going to see the benefit for awhile down the road.” He said it would be better if car buyers could benefit right away, when they purchase a new car. Former state Sen. Dennis Wilson, co-owner of New Century Dodge Chrysler Jeep, said his dealership hasn’t yet seen any sales upswings to show the incentives are working. In fact, he believes there is an unsubstantiated public fear, which continues to keep them from buying. “We don’t think the economy is quite as bad, at least in the Midwest, as others might believe,” Wilson said. “But fear feeds on itself, and it creates a lot of motivation for people not to do anything. But we’re optimistic people. You have to be if you’re going to maintain ownership in the car dealership.” He said credit is an issue, too. “The auto dealers, who are being threatened by the manufacturers not having the wholesale credit available to carry more cars, are cutting back on their floor plans,” Wilson said. He said more immediate incentives could be created by facilitating better credit access for everyone. Gudenkauf said his sales staff is getting the word out about the tax incentives, one customer at a time, to try and help boost sales. “I don’t think the message is out there loud enough, about how much people might save, so we do it on an individual basis when we’re talking to people who are in the market,” he said.
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