The last-minute deal to avert the dreaded plunge off the “fiscal cliff” should have little impact on most shoppers thinking about buying a new car in 2013, says Edmunds.com.
Edmunds’ Lacey Plache makes the case.
After studying the key elements of the fiscal compromise, Dr. Plache identified the following important takeaways for car buyers:
- Interest rates, which are currently at historic lows, should not be affected by the deal. The Federal Reserve has repeatedly pledged to keep interest rates low until at least the end of 2014.
- The payroll tax will return to full strength in 2013, meaning that the average American household, which makes $41,000 a year, can expect his or her annual take-home pay to be $820 — or the equivalent of about two car payments — lighter in the coming year.
- Parents thinking about buying a new car can breathe easier knowing that family-friendly tax credits such as the American Opportunity Tax Credit, the Child Tax Credit, the Earned Income Tax Credit and the Child and Dependent Care Tax Credit have all been extended for at least the next five years.
- Federal employees and employees whose companies depend on government contracts may want to wait a little longer to pull the trigger on a new car purchase. Congress will consider spending cuts in the next few months, which means an uncertain future government program budgets.