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The TAX Credit - Include with quotes ?

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danoneil

danoneil

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Apr 16, 2009
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#1
I was talking with a salesperson on Saturday about the sales tax deduction for consumers buying new vehicles. We sold 156 new cars last month and out of 156, we came to the conclusion that maybe , maybe 10% bought , knowing about the deduction and that is was an incentive.


Curious to hear other input about this tax credit and what percentage of our customers know about it.
Do you have signage in your showroom ? If so are the signs BIG or small ...?

I would also like to know is anyone is mentioning the tax credit info with their quotes and if so, what is the feedback ? Does it make a difference...?

How about tax credits for buying a hybrid ?

How many of us really know about this tax credit , you know , the details.. I know about the income cut off point, but what will a customer get back if the pay $1500 in sales tax ?
 
#2
In Virginia the sales tax is 3%, so the credit is a joke compared to the price of the car. It starts to be more than just a couple hundred dollars when you get into the $40,000 - $49,500 range.

When it was first started we toyed with the idea of doing a "Match Uncle Sam" but we ended up just doing "We pay your sales tax on everything (sales, service, parts)" and it didn't go very far. We ended up spending a lot of good advertising money pulling people back into the showrooms who were already working with us. We could have just done some broadcast emailing, a mailer, and some sales people/BDC follow-up calling to have accomplished the same thing.
 
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  • Dealers discuss whether to advertise the sales tax deduction for new vehicle purchases as a sales incentive, with most reporting that customers are largely unaware of it and that it's not significant enough to drive purchase decisions in most states.
  • While some dealers have experimented with promoting tax credits in marketing campaigns, the consensus is that the incentive's impact is minimal—particularly in low-tax states where the credit amounts to only a couple hundred dollars—and that traditional follow-up tactics are more cost-effective than dedicated advertising campaigns.

Dealers discuss whether to advertise the sales tax deduction for new vehicle purchases as a sales incentive, with most reporting that customers are largely unaware of it and that it's not significant enough to drive purchase decisions in most states. While some dealers have experimented with promoting tax credits in marketing campaigns, the consensus is that the incentive's impact is minimal—particularly in low-tax states where the credit amounts to only a couple hundred dollars—and that traditional follow-up tactics are more cost-effective than dedicated advertising campaigns.

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