Unfortunately, this applies just to new cars, not used cars or certified preowned (CPO) cars. I have to say that if you don't yet have an eight-month savings account, have any credit card debt or are behind on your retirement savings, this is a useless tax break. You probably have no business buying a new car. Buying a reliable used car is going to be a lot less costly than purchasing a new car, even with the tax break thrown in.
And as I have said repeatedly, until we get our credit markets unstuck, it may not be much help for the government to come in with these sorts of breaks. What good does it do you if you can't get a loan because lenders are too scared to lend? More recession rescue advice from Suze Orman
Published on April 02, 2009
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