Is This the Year To Buy a New Car?

Thinking of Buying a New Car This Year?

As we all know the automotive industry is having a VERY bad year. If you have the money, this may be a good year to buy a new car. Many car companies are offering great deals (0% interest on 5 years) and prices are lower than ever. If you need even more incentive, the IRS just released notice that you may be able to deduct state and local excise taxes paid on the car purchase on your 2009 tax returns.

Accprding to IRS Tax Notice IR-2009-30, the deduction is limited to the state and local sales and excise taxes paid on up to $49,500 of the purchase price of a qualified new car, light truck, motor home or motorcycle.

There are some restrictions for those making over $125,000 and the vehicle must be purchased after Feb. 16, 2009, and before Jan. 1, 2010, to qualify for the deduction.

I don't know about you but it makes me take a closer look at that Saturn Sky I've had my eyes on!

Consumerist Website

Another staple of my daily reading is the Consumerist website. They provide an incredible amount of useful information. (They are affiliated with Consumer Reports). The site offers a range of info, including suggestions on how to save money, product recalls, and how to productively launch company disputes.

http://consumerist.com

Bargainist Website

Anyone who knows me has heard me talk about the Bargainist website. It is one of my absolute favorites and I review it every day. They do a great job of locating deals (on-line and some coupons). I highly recommend checking them out.

Pay Yourself With Coupons

As an incentive to save, I pay myself for the effort. I have a seperate "coupon" savings account. Anytime I save using coupons, bonus points, rebates, refunds, etc., I deposit the amount saved into that account. I keep my coupon account at the credit union (not my normal banking institution). At the end of the week, I total up my savings and write a check to myself from my bank to the coupon account.

For example, last week I saved $54 using coupons and bonus points at the grocery. Then I received a $25 rebate from Olay, and a $70 debit card from Verizon. I deposited $149 into my coupon account.

While this is really just consolidating the savings into one place, I find it motivating. Saving money really can be a game and I, for one, like to reward myself for playing. If you are a savvy consumer, it really doesn't take long for money to add up. In 9 months time, I've saved close to $1,500.

I'm also moving into paying myself for NOT buying things. I find I spend ALOT of money on just stuff - stuff no one really wants or needs. (I have a hard time passing up bargins. I find myself coming home with random things: a new shirt for my daughter, a toy for one of the grandkids, etc). Rather than spending that money, I'll start putting aside that money into my coupon account. That way I will reward myself for showing restraint AND saving for something I'll really want in the future.