New car buyers taking advantage of tax breaks

Dave Rolf
Dave Rolf
Brad Nicolai
Brad Nicolai

By Roger Mari - bio | email

HONOLULU (KHNL) - During these uncertain economic times some people are putting off making big ticket item purchases.

But some experts say, now might be the time to think about getting a new car. Roger Mari has more on an incentive geared toward driving auto sales up.

5 other states are now finding out what Hawaii has known since February. They too, are states without sales tax and are entitled to deduct other fees or taxes, imposed by the state or local government when buying a brand new car.

"There were other states that were looking at other special kinds of tax in other states but we had already confirmed that the Hawaii situation would be applicable, and that's why we were able to announce it so early," said Dave Rolf of Hawaii Automobile Dealers Association.

With car sales on the downturn, the tax breaks will hopefully get more people revved-up about leaving the showroom with a new set of wheels.

"The number of new cars sold has dropped from 70,000 down to almost 35,000 so to bring that up to 38,000 would be a wonderful achievement,' said Dave Rolf.

Some car dealers in Hawaii believe it's now just a matter of time before they see more traffic rolling into their lots.

"The next stage of them actually coming down has certainly occurred and as more people continue to see the benefit, I think it will have a positive impact on sales," said Brad Nicolai of JN Automotive Group.

It could still be a rough road ahead, but this tax break is one way to help the auto industry rebuild, while saving customers thousands of dollars.