The $33 Million IRS Mistake!
It is not quite sure how some owners of vehicles from Dodge Dealers Kingwood thought that their gas guzzler qualified for a fuel efficiency tax credit, but they did. Because of errors by approximately 14,000 tax payers, the IRS is doing an audit for the entire lot of car credits filed. They will be checking to see when those vehicles at Ford Dealers Texas were produced to make sure that the ones that are actually correct for the credit match up with the dates that were followed. It is understandable that some of the fuel efficient cars, such as the Focus from Huntsville Ford, might get mixed up in the error. The Ford Focus has great fuel efficiency and perhaps those owners thought that the tax credit was applicable based on miles per gallon. That is understandable, but, claiming a Dodge Durango, Cadillac Escalade, and Hummer H3 are by no means fuel efficient, and now this audit is going to cost tax payers additional money.
The tax credits are currently in place for electric or alternative fuel vehicles, and the vehicles that fall under that category are far fewer than they have been in prior years. While the Toyota Prius used to come with a handsome tax credit for owners, it no longer qualifies. The Treasury Inspector General for Tax Administration performed an audit and discovered that 20% of these credits were erroneously filed. That equates to $33 million worth of tax credits going to people who should not have gotten them. The IRS will be busy trying to correct the problems, and these credits are meant solely for electric vehicles.
Interestingly enough, there were 88 incarcerated prisoners who claimed they had purchased electric plug-in vehicles and ended up getting $155,000 worth of credits. When you figure that the government is offering $7,500 for people who buy the Chevy Volt or Nissan Leaf and their forms don’t provide proper documentation to prove ownership, people are very tempted to fudge the truth on their taxes. However, now that these errors have come to light, you can expect more stringent documentation and the IRS plans on adding a line on tax forms for the VIN and the internet tax databases will be updated sooner rather than later.
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Paying for Options You Don’t Want?
The car buying process is hard enough and it does not matter if you are buying a car from Orlando Chevrolet or anywhere else for that matter. The process is time consuming, frustrating, confusing, and down right expensive. One of the biggest complaints that car shoppers make about their experience at places like Connecticut Acura is about the optional feature packages. Many of us are on fairly tight budgets right now, but at the same time you have to understand the value of having a new car that is reliable. So when shoppers visit Honda CT and find their perfect car, it can be even more confusing and frustrating to learn that you really can not have everything you want.
After you have been driving for a few years and have driven a few vehicles, you get a sense of the features you absolutely must have, the features you would love to have but can not afford, and the features you could care less about! Many car dealerships have resorted to “value meal” type of package menus; you pick a package and get everything that is listed. There are no more individual “side dishes” that you can tack on to your vehicle purchase. Not all brands have resorted to this method of packaging out their optional features, but some buyers are beyond frustrated with the practice.
Sometimes it can be convenient to bundle some items. Many brands offer a “power package” which will include your power locks, windows, automatic transmission, and power mirrors. Those items are fairly standard and many consumers have come to expect that to already be included with the base model. Other packages might be called “Technology” or “Entertainment.” These will bundle your convenience features like dual-zone climate control, sun roof, auto life gate, power seats, in-dash navigation, and back seat entertainment. The dilemma and frustration comes into play when you want three out of the five options listed, but are stuck paying for features you really don’t want.
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Lincoln’s Sneaky Pricing Tactics
If you are in the market for a new hybrid, then you will find good deals at Louisville KY Used Cars. But if you want luxury in your hybrid then go no further than AZ Ford Dealerships to have a look at the 2011 Lincoln MKZ Hybrid, a sedan that is priced the exact same as the gas model. How is that even possible? Well, for only $34,440, you can drive home in either sedan. But some consumers are realizing that you do have to read the fine print; there are tons of incentives for the gas model.
Auto companies need to give consumers more credit! We all know that you can get great prices from Auto Body Shop Salem when you are in need of repairs, and we know when something is too good to be true. You can’t deny that getting a quality luxury hybrid from Lincoln for $34,440 is still a great deal, but why would Ford even think to price them the same? If the company never planned on selling them for the same price, then why make such claims. This is not a case of false advertising, rather it is just good press.
On the 2011 Lincoln MKZ traditional gas model, there are a handful of incentives being offered. First there is the $1000 Retail Customer Cash, then there is the $1000 Ford Credit Retail Bonus Customer Cash, and finally the $1000 Promotional Retail Bonus Customer Cash. Plus, there are $500 Ford bonuses for Military Appreciation or Police Association. None of these are being offered on the Hybrid MKZ. Both models of the MKZ do have the $325 maintenance plan available, but there are no rebates with the hybrid. Perhaps this is just because the hybrid is a new release? No matter how you look at it, the MKZ Hybrid still costs a few thousand dollars more than the gas model, as it should.
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Fair Wages for GM’s CEO?
Don’t we all wish we could bring home $9 million per year? It is probably safe to say people would be more than comfortable if they brought home more than $100,000 per year, let alone in the millions like the CEO of Hartford Hyundai does. It can be difficult to find out exactly how much the CEOs of auto manufacturers make annually, and Chrysler CEO wages aren’t publicly released; willing to bet the employees of Birmingham Dodge Chrysler make a mere fraction of the CEO wage. Well, General Motors has announced that their new CEO, Daniel Akerson, will be bringing home $9 million this year.
That may seem like a lot, but the CEO of Ford Motor Company, Alan Mulally, makes $17.9 million per year. They have a great line up of vehicles which can be found at San Antonio Ford, but does one man really need to earn that much money? It might make it seem better if you consider that his actual paycheck is only $1.7 million per year and the remainder of his pay package comes from two types of stock. Akerson will get $5.3 million worth of stock every year for three years at the end of September 2011. Additionally, he will begin receiving $2 million worth of restricted long-term stock in 2012.
General Motors has appointed four CEOs since 2009, and Akerson replaces Ed Whitacre. Both men joined the board in July of 2009, but when GM announced their plans for the initial public stock offer, Whitacre decided he should resign. Akerson is receiving the same pay package that Whitacre was set to earn. It is considerably less than the CEO from 2001, Rick Wagoner. Wagoner was asked to step down by the Obama administration at the beginning of 2009, but he still brought home $14.9 million in 2008. Perhaps that is why the U.S. Government owns 61% of General Motors?
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Leasing: A Waste of Money!
For some drivers, purchasing a new car can be more of a need rather than a desire. You have to have a car in most areas to make having a job practical, and it turns into this vicious cycle. We all wish we could walk into Birmingham Jaguar Dealers and lay down a wad of cash, but the fact of the matter is, many of us will never be able to do that in our lifetimes. As you visit places that are a little more affordable than Shreveport Mercedes-Benz Dealers, you will be approached with some amazing incentives that will make you want to purchase right away. But, there might be one catch: it is a lease.
So why is leasing not a great option for someone who is on a tight budget and fell in love with a little commuter car from Memphis Ford Dealers? Well, the lease rates may seem incredibly low at the time of purchase, but when your three year term is over, then what will you do? Your option is to take out a loan to pay off the residual value, and it is near impossible to accurately predict residual value from three years away. Dealers will make a guess for you, but a lot can happen in three years; the auto brand might not even be in existence anymore! Or your other option is to turn the car back in to the dealership and either lease or purchase another vehicle.
Leasing makes sense if you must have a brand new vehicle all the time. Perhaps part of your business is impressing clients, and that is certainly easier in a new car rather than an old clunker. But for most of us, leasing is pretty frivolous and all you are doing is continually renting a car. After all the money you spend, you will still never have the title to a car!
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Don’t Get Scammed on Maintenance!
Vehicle ownership can be expensive, even if you don’t own an expensive luxury car from BMW Dealer Oakland. In fact, several of the luxury lines offer “free” maintenance for a set period of time when someone buys one of their new models. Sadly, not everyone in this country is honest and trustworthy, so as a consumer, you need to be on the look out for scams and being overcharged. When you take your car from Honda Dealer Trenton to the local shop for your routine oil change, chances are that they always come back saying you have a few other minor things they would like to fix. The shop will tell you it is imperative you fix them now and it will only be a couple hundred dollars for all of it! Ouch.
Below are some of the key terms consumers need to watch out for. These services are low cost for the mechanic to perform and also high profit, meaning you are getting scammed. If you get your car from GMC Buick Dealer Dallas in for a routine oil change and haven’t had any problems with your car’s performance, remember that when the mechanic comes back to tell you their findings. If they suggest you need an engine flush, which can run upwards of $200, say no thanks. When you get home, look at the oil cap and if you see deposits then they might be correct, and you can get your engine flushed next time. Another common service scam has to do with cleaning your fuel injectors. Again, it will cost upwards of $200 and if you haven’t noticed a problem, then don’t bother fixing what isn’t broken!
Lastly, be cautious of the gimmick gadgets. By this, we mean the “premium” low cost upgrades that they will try to up-sell to you. Similar to high octane gas, sure it definitely won’t hurt your vehicle and may or may not improve longevity and performance; but at what cost is it really worth it? Oil and fuel additives can be as low as $10 each time, but it really adds up over time. Unless you are going for synthetic oil, the regular run of the mill stuff will do just fine.
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Hidden Costs in Compact Cars!
When you are in the market for a new car, you might find yourself heading over to Bradenton Used Cars in hopes of finding a great deal. You could always check out the great inventory of small cars from your local Volkswagen dealer, plus their hybrid and diesel engine models have great fuel efficiency. There is nothing more frustrating as a consumer than thinking you can spend about $15,000 on a compact car because that is the advertised price and then you show up at the dealership and all the prices are starting at about $19,000. Where did that extra $4,000 come from? Well, Cleveland Honda and other Honda dealerships have been doing it for years with their Honda Civic. Sure, the base MSRP is only $15,455, but the average selling price of a Civic is closer to $18,500.
Because the Civic comes with so many engine and trim level choices, dealerships don’t always carry a base model. Plus, Honda is known for keeping their base models pretty sparse. You can get a fully loaded Civic EX-L including navigation for $23,805. That isn’t an outrageous price for what you are getting, but when the commercials on TV are saying something in the market of $15,000, that is an $8,000 difference.
Possibly the worst compact car at the price switch is the Subaru Impreza. Its base MSRP is only $17,495 but some buyers get tricked into the STI performance version which will set you back about $34,995. According to Edmunds, the Impreza usually sells for about $21,136; still, a long way from $17,495.
The Toyota Prius is going to drain your pocket book, but only if you let it. It is an incredibly affordable hybrid, with a starting MSRP of $22,800. But if you want to get the best Prius you can get, it will cost you about $36,000. Keep in mind though that the luxury and amenities you will have purchased will rival that of a BMW.
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Mediocrity A Way of Life
Many companies thrive by being mediocre. Their entire business is built around it. McDonald’s, Wal-Mart and Books A Million are names that come to mind. I got a good dose of mediocrity this weekend and felt like this was the best place to talk about it.
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Lies, Deception and a Merchants Response to Unethical Affiliate Behavior
By Paul Rushing
Green Mountain Coffee Roasters has a rogue affiliate. The affiliate was making offers that were not authorized by the affiliate agreement and when it became a customer service issue it took third party intervention to make the consumer whole.
The situation that unraveled was that the consumer visited the affiliate site and had a problem completing the order online. She called the customer service number to complete the transaction. When she applied for the rebate through the affiliate they refused to pay it. If their terms were clear, this would have been understandable, however they made no inference that the transaction must be completed entirely online to receive the rebate. Read more
