Buying a Mustang GT process?
04-13-2006, 03:50 PM
#11
1st Gear Member
Join Date: Feb 2006
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Posts: 137
RE: Buying a Mustang GT process?
This interest deduction is legit because its a Home Equity loan. The interest on these types of loans is deductible just like on your mortgage loan. And yes, I did check with my CPA 
ORIGINAL: LEJAY
I'm no expert, but, I'm pretty sure that interest deduction won't fly with the IRS. If you ain't filed yet (like me) Check with your accountant, or read your tax book.
I'm no expert, but, I'm pretty sure that interest deduction won't fly with the IRS. If you ain't filed yet (like me) Check with your accountant, or read your tax book.
04-14-2006, 03:49 AM
#12
3rd Gear Member
Thread Starter
Join Date: Jan 2006
Location: Boston
Posts: 571
RE: Buying a Mustang GT process?
Okie dokie, i just got 2 email replies from different dealers in the area. I'm thinking of going with dealer #2 because its a larger dealership and from the looks of things he knows what he's talking about. What do you guys think? [&:]
Dealer #1
"Hello,
You would need to leave a minimum deposit of $1,000.00
Most ordered vehicles have 2-3 miles upon arrival at the dealership. However Ford Motor co. sometimes picks a random vehicle to do an actual test to assure quality control. When this happens then a vehicle arrives with usually 30 - 40 miles. This has only happened to me twice in 13 years. The wait time on a Mustang GT coupe is normally 10-12 weeks however once an order is accepted by Ford there is no control from our end as to when this vehicle can be built. As far as March 24th is concerned if Ford decides not to build any more 2006 models then you would automatically be in the 2007 production line.
If you don.t want to wait I do Have a Beautiful GT convertible that is currently available.
Please let me know what is good for you.
Thank You,
Tom ----------- "
Dealer #2
"The deadline for ordering a 2006 GT has passed. We can order a 2007 model however production won't start until July. We won't truly know delivery time until the order is entered based on availablility of the various options you choose.
Assuming therer are no items on hold or short supply you can probably expect delivery late summer.
Thank you,
Rick -------
Regan Ford"
Dealer #1
"Hello,
You would need to leave a minimum deposit of $1,000.00
Most ordered vehicles have 2-3 miles upon arrival at the dealership. However Ford Motor co. sometimes picks a random vehicle to do an actual test to assure quality control. When this happens then a vehicle arrives with usually 30 - 40 miles. This has only happened to me twice in 13 years. The wait time on a Mustang GT coupe is normally 10-12 weeks however once an order is accepted by Ford there is no control from our end as to when this vehicle can be built. As far as March 24th is concerned if Ford decides not to build any more 2006 models then you would automatically be in the 2007 production line.
If you don.t want to wait I do Have a Beautiful GT convertible that is currently available.
Please let me know what is good for you.
Thank You,
Tom ----------- "
Dealer #2
"The deadline for ordering a 2006 GT has passed. We can order a 2007 model however production won't start until July. We won't truly know delivery time until the order is entered based on availablility of the various options you choose.
Assuming therer are no items on hold or short supply you can probably expect delivery late summer.
Thank you,
Rick -------
Regan Ford"
04-14-2006, 10:10 AM
#13
Join Date: Jun 2005
Posts: 12
RE: Buying a Mustang GT process?
ORIGINAL: skm52670
This interest deduction is legit because its a Home Equity loan. The interest on these types of loans is deductible just like on your mortgage loan. And yes, I did check with my CPA
This interest deduction is legit because its a Home Equity loan. The interest on these types of loans is deductible just like on your mortgage loan. And yes, I did check with my CPA
ORIGINAL: LEJAY
I'm no expert, but, I'm pretty sure that interest deduction won't fly with the IRS. If you ain't filed yet (like me) Check with your accountant, or read your tax book.
I'm no expert, but, I'm pretty sure that interest deduction won't fly with the IRS. If you ain't filed yet (like me) Check with your accountant, or read your tax book.
04-14-2006, 11:01 AM
#14
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Join Date: Apr 2006
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Posts: 782
RE: Buying a Mustang GT process?
Based on what you got back, dealer #1 looks more "legit", than #2. It's my understanding that deliveries will begin July 3 to dealerships. So, late summer would not be correct.
What is late summer ? Oct 1 ?
I'd order from #1, if you get the '06 good, if not, you are in line for the '07 great !
I would think missing the '06 would put you ahead of an outrught '07 order.
However, the '06 deadline may have passed like dealer #2 told you.
What is late summer ? Oct 1 ?
I'd order from #1, if you get the '06 good, if not, you are in line for the '07 great !
I would think missing the '06 would put you ahead of an outrught '07 order.
However, the '06 deadline may have passed like dealer #2 told you.
04-14-2006, 11:23 AM
#15
5th Gear Member
Join Date: Nov 2005
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Posts: 2,227
RE: Buying a Mustang GT process?
Right, but I believe the "home equity lome" for IRS is to be used to improve the home and it's equity; an off shoot of a home mortgage really. Now I know ignorance of the "law is no excuse" (and the software now is very user friendly) but I am not an accountant so if I "mess up" (lol) on the most complicated taxcode in the history of mankind, well hey "tell me what I owe". You would not likely get audited anyway and if you did you'd have to write the IRS a check; but no slap on the hand; millions of Americans are making this "mistake", whether deliberate or not, who's to say.
04-14-2006, 11:49 AM
#16
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Join Date: Apr 2006
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RE: Buying a Mustang GT process?
Excellant point Fairlane292, it's a chance to take. The IRS however, is really checking on the equity loans and usage of those funds.
The interest is deductible for debt reduction (credit cards, 2 year or older loans on cars, boats, etc), and for college tuition, medical bills, home improvement.
But, it isn't deductible for car purchases, and this is where they are cracking down. The interest and penalties is what hurts most. If something is found 3 yeras after the fact, a $300 mistake becomes $1200. Now, the "scary" thing is, the IRS has volunteer accounting students doing free audits for class credits, and future experience. These kids love finding mistakes.
Just trying to be helpful. Believe me, it's more than just feeling "they have no right to tell me how to spend my money", if the deduction is taken, it had better been spent by their regulations, or they lower the boom. I hate those bloodsuckers, but, the last thing anyone needs is a hassle with them
The interest is deductible for debt reduction (credit cards, 2 year or older loans on cars, boats, etc), and for college tuition, medical bills, home improvement.
But, it isn't deductible for car purchases, and this is where they are cracking down. The interest and penalties is what hurts most. If something is found 3 yeras after the fact, a $300 mistake becomes $1200. Now, the "scary" thing is, the IRS has volunteer accounting students doing free audits for class credits, and future experience. These kids love finding mistakes.
Just trying to be helpful. Believe me, it's more than just feeling "they have no right to tell me how to spend my money", if the deduction is taken, it had better been spent by their regulations, or they lower the boom. I hate those bloodsuckers, but, the last thing anyone needs is a hassle with them
04-14-2006, 02:47 PM
#17
2nd Gear Member
Join Date: Mar 2006
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Posts: 157
RE: Buying a Mustang GT process?
As far as equity lines of credit taxes go, I believe the only reason they ask is because you can only deduct the interest on the first $100K of equity. The exception, would be if you used that money to make home improvements, which pushes deductible interest to a new limit to $1 million.
For example ... you take out an equity loan for $200K, then spend it on everything but home improvements, you'd only be able to deduct interest on the first $100K.
Take that same $200K equity loan, use the money it to build an addition on your home, and you can deduct the interest on the entire $200K.
So, if your equity loan (or cash out from refinancing) is under $100K and doesn't exceed the fair market value for your property, you should be OK with the IRS in deducting all of the interest, no matter how you use the money.
At least that's the way my CPA explained it to me. :-)
For example ... you take out an equity loan for $200K, then spend it on everything but home improvements, you'd only be able to deduct interest on the first $100K.
Take that same $200K equity loan, use the money it to build an addition on your home, and you can deduct the interest on the entire $200K.
So, if your equity loan (or cash out from refinancing) is under $100K and doesn't exceed the fair market value for your property, you should be OK with the IRS in deducting all of the interest, no matter how you use the money.
At least that's the way my CPA explained it to me. :-)
04-15-2006, 12:01 AM
#19
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Join Date: Mar 2006
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Posts: 1,138
RE: Buying a Mustang GT process?
ORIGINAL: UrS4
I would think $1000 down is too much to put an order through, $200-500 should be plenty. The dealership will most likely do it with a credit card. When the car comes in, it is yours first unless you decide to pass, it happens, sometimes the wait is too long and you buy something else. Remember, you might think you are ordering one and the dealer just gets lucky and finds one with the same options at another dealership and does a trade to get that particular car. Of course they tell you that, so they shouldn't lie to you. Do you still have barganing power, yes! If they trade another dealer for it and it is not a perfect match, you have plenty of leverage. If you are ordering an 06, you have leverage when the car comes in because it will show up right before the 07 and you are buying a 1 year old 'new' car when you could have waited. You always have the opportunity to get a better deal until the keys are in your hands and you already paid for it. If you say no after they find the car you wanted, they may think you are a jerk but they can always sell it to the next guy so don't feel too bad if you hold out for a better deal.
Hope this helps.
I would think $1000 down is too much to put an order through, $200-500 should be plenty. The dealership will most likely do it with a credit card. When the car comes in, it is yours first unless you decide to pass, it happens, sometimes the wait is too long and you buy something else. Remember, you might think you are ordering one and the dealer just gets lucky and finds one with the same options at another dealership and does a trade to get that particular car. Of course they tell you that, so they shouldn't lie to you. Do you still have barganing power, yes! If they trade another dealer for it and it is not a perfect match, you have plenty of leverage. If you are ordering an 06, you have leverage when the car comes in because it will show up right before the 07 and you are buying a 1 year old 'new' car when you could have waited. You always have the opportunity to get a better deal until the keys are in your hands and you already paid for it. If you say no after they find the car you wanted, they may think you are a jerk but they can always sell it to the next guy so don't feel too bad if you hold out for a better deal.
Hope this helps.
I put $1000 down on an order and yesterday I was at the dealership to have some waranty work done on my 2004 F150 (7200 miles and the rear differential gasket was leaking). Anyway, I asked them when my GT was coming in. The story I got was they don't know because they didn't get a build date yet from Ford, that they have another GT ahead of mine with no word on that one either, and they will call me when they receive my build date. One guy then says, "it might be 15 or 16 weeks." When I put my order in 3 weeks ago they said 6-8 weeks, so I am not happy.
Now I'm considering cancelling the order to ask for my money back, but upon reading the back of my signed order form it states:
Dealer shall not be liable for failure to deliver or delay in delivering the motor vehicle covered by this Order when such failure or delay is due, in whole or in part to any cause beyond the control or without the fault or negligence of Dealer.
and:
Upon the failure or refusal of the purchaser to complete said purchase for any reason, the cash deposit may be retained as liquidated damages...
I am tempted to cancel the order and look for a GT on the lot of another dealership, but it appears they have the right to keep my $1000 downpayment.
04-15-2006, 12:22 AM
#20
2nd Gear Member
Join Date: Apr 2006
Location:
Posts: 286
RE: Buying a Mustang GT process?
normally id say just ask for a refund, except for this line
"Upon the failure or refusal of the purchaser to complete said purchase for any reason, the cash deposit may be retained as liquidated damages... "
Although i do know this, ur most likely not going to get an 06 if u just recently ordered it as a lot of ppl are getting calls from there dealers saying uve been cut from the list cause there gonna start the 07's. I know for a fact, at that point they legally have 2 give u ur money back or ask u if u want an 07.
Although, id just tell em, you heard ur prolly gonna get cut from the list, so u would like ur deposit back and "mabye" you will come back later for an 07. As long as they dont have a build date, then it cost them nothing 2 have it ordered cause ur just on a list so they shouldnt mind giving u ur money back, if they pull that bs in ur contract then just say nvm and bite the bullet and stay on the list, although like i said, most likely there gonna call u and say u didnt make the deadline and u can have ur 1K back or get an 07.
"Upon the failure or refusal of the purchaser to complete said purchase for any reason, the cash deposit may be retained as liquidated damages... "
Although i do know this, ur most likely not going to get an 06 if u just recently ordered it as a lot of ppl are getting calls from there dealers saying uve been cut from the list cause there gonna start the 07's. I know for a fact, at that point they legally have 2 give u ur money back or ask u if u want an 07.
Although, id just tell em, you heard ur prolly gonna get cut from the list, so u would like ur deposit back and "mabye" you will come back later for an 07. As long as they dont have a build date, then it cost them nothing 2 have it ordered cause ur just on a list so they shouldnt mind giving u ur money back, if they pull that bs in ur contract then just say nvm and bite the bullet and stay on the list, although like i said, most likely there gonna call u and say u didnt make the deadline and u can have ur 1K back or get an 07.