At DriveWise Auto, we are constantly searching for new and creative ways to save our clients money. If you have any thoughts or suggestions, please contact us and let us know. In the meantime, we will keep trolling the internet for information that we can use to better serve your needs. Here are two things we recently came accross that you might find of interest:

#1: Under the American Recovery and Reinvestment Act of 2009, the government has created provisions making it possible to deduct state, local sales and excise tax on the purchase of a new automobile (a used vehicle is not eligible), and to get full value for that deduction. This benefit is available only for purchases of new vehicles occurring on or after February 17, 2009 (the date of enactment of this law) and on or before December 31, 2009.

As with other tax provisions, there are some stipulations that exist. If the purchase price exceeds $49,500 you can claim this benefit only on the sales and excise tax relating to the portion of your purchase price up to that amount. The deduction, however, is phased out if your income exceeds $125,000 ($250,000 on a joint return). You don’t have to itemize to claim this deduction, and it’s insulated from the effects of the AMT.
For more information on this, please contact your CPA, and be sure to call DriveWise Auto to assist you in finding the new vehicle that will allow you this deduction.

#2: We have learned that in a vehicle lease, and through the use of multiple security deposits, a lessee may be able to reduce their lease money factor/interest rate, and thereby lower their monthly payment (significantly). To determine exactly how much this can save you, we’d need to run a calculation based on the car you are considering, but we have already been able to save some of our clients in excess of $100 per month using this new, and completely risk-free, strategy.

The basics of how this works: some (not all) manufacturers will allow their lessees to put multiple security deposits down. Security deposits are refundable and viewed just like a certificate of deposit might be. The lessee leaves that money with the manufacturer for the duration of the lease, and because the manufacturer then sees less risk in the vehicle they are leasing out because of the increased security deposit, they will in turn extend to the lessee a reduction in the interest rate/money factor. If you compare the amount that you must outlay in increased security deposits to the reduction in the payment, the result could be as much as a 15% guaranteed annual return on your money. Ask yourself this: Where else can you get that kind of return right now? If you’re looking to lease a vehicle, and you have the liquidity to support multiple security deposits, you can!
For more about this tactic, be sure to contact DriveWise Auto and ask how you can save money on your next lease!