Buy before Christmas or after Christmas

[Rhino]

For complicated reasons, I can't get a Prius until Dec, 2009. Is there any benefit to waiting after Christmas?

I don't have much experience buying cars.

Any recommendations for a Northern Virginia Dealership?

Thanks.

[dwhutch]

There is a sales tax deduction cars purchased by 12/31/09. If your state does not have sales tax then certain other fees can be deducted. Google “car sales tax deduction for 2009” to get more info.

[Rhino]

Originally Posted by dwhutch

There is a sales tax deduction cars purchased by 12/31/09. If your state does not have sales tax then certain other fees can be deducted. Google “car sales tax deduction for 2009” to get more info.

Thank you thank you. That is a great tip. I am consulting my accountant right now. If it is applicable to me, and I don't see why not, I will get the car as soon as possible - but after Dec 1.

[akamekon]

Originally Posted by dwhutch

There is a sales tax deduction cars purchased by 12/31/09. If your state does not have sales tax then certain other fees can be deducted. Google “car sales tax deduction for 2009” to get more info.

I know this is going to sound like an extremely dumb question, but would such a deduction make any "real" difference for someone like myself with very little taxable income to begin with?

This is the first year that I will be filing taxes for, so that is why I'm asking this question. I don't believe it would be as beneficial for me (with <$5,000 taxable income for the year), because I am already paying very little taxes as it is...but I could be wrong (hence the question).

[Rhino]

Originally Posted by akamekon

I know this is going to sound like an extremely dumb question, but would such a deduction make any "real" difference for someone like myself with very little taxable income to begin with?

This is the first year that I will be filing taxes for, so that is why I'm asking this question. I don't believe it would be as beneficial for me (with <$5,000 taxable income for the year), because I am already paying very little taxes as it is...but I could be wrong (hence the question).

The tax deduction is only applicable for the purchase of a new car. So if you make less than $5000, and it is your first year of paying taxes, but you can afford a $22K+ new car, you must have other sources of income. Maybe you need to revise that tax return. I advocate being completely honest with the government.

[akamekon]

The reason for such a low income is because I have not had a job the entire year, and have recently acquired a new one, higher paying. As far as being able to afford a new car, I am quite sure of my ability to afford the car. I tutored throughout high school for pay, and have been saving for quite awhile. I am actually holding off on purhasing the car for a few months so that I can build a sufficient emergency fund, etc. And rest-assured, I am being completely honest with the government :-).

[Rhino]

Originally Posted by akamekon

The reason for such a low income is because I have not had a job the entire year, and have recently acquired a new one, higher paying. As far as being able to afford a new car, I am quite sure of my ability to afford the car. I tutored throughout high school for pay, and have been saving for quite awhile. I am actually holding off on purhasing the car for a few months so that I can build a sufficient emergency fund, etc. And rest-assured, I am being completely honest with the government :-).

You are the only one who can answer your question. You make about $5000 this year. In previous years you make less. You want a car that cost about more than 4.5 times your annual income. I mean, if you really saved all that money for many years, why spend it on a Prius? Something like a Yaris which cost $14000 or so seems to make more sense - and save you like 2 years of income. There are many things in life besides a car. Music, girlfriend/boyfriend, iPods, phones, bicycles, vacations, - why spend 4.5 years of income on a Prius?

For me, saving on taxes is like hypermiling. It is a hobby. Anything to reduce taxes, within legal limits, make me happy so it is always totally worth it. Then I take the money I save and give it to charity. So it is not about the money or time - it is a hobby.

[akamekon]

Originally Posted by Rhino

You are the only one who can answer your question. You make about $5000 this year. In previous years you make less. You want a car that cost about more than 4.5 times your annual income. I mean, if you really saved all that money for many years, why spend it on a Prius? Something like a Yaris which cost $14000 or so seems to make more sense - and save you like 2 years of income. There are many things in life besides a car. Music, girlfriend/boyfriend, iPods, phones, bicycles, vacations, - why spend 4.5 years of income on a Prius?

For me, saving on taxes is like hypermiling. It is a hobby. Anything to reduce taxes, within legal limits, make me happy so it is always totally worth it. Then I take the money I save and give it to charity. So it is not about the money or time - it is a hobby.

Thanks for the input Rhino. I have been strongly considering a less-expensive car (Civic DX) for the very reason you mentioned. The reason I am considering the Prius is because I plan on keeping this car for 10+ years, and thus a whole lot of want I "want" in a car is playing a factor.
I really don't want this to devolve into some of the conversations about teen drivers have on the other forums, but I am a college freshman, still under much support from his parents. I have discussed this with them, and this is not a purchase I am likely to make very soon, particularly because of the fact I have a perfectly working vehicle right now (with the downside being the heavy cost of gas).
In all reality, it could be argued that I maybe don't belong on this forum since I won't be purchasing the vehicle this year, but I do want to learn, and make the most educated decision I can. I am DEFINITELY not going to risk going in to debt over something as material as a car, and I realize the importance of having a life, haha, but I still do have a right to buy nice things for myself, provided I do it in a responsible way.