Posted by zog
on June 14, 2009, 8:07 pm, in reply to "Re: Classifications"
Most of those SUV sales for folks who don't need them but have a lot of cash were from tax breaks for larger vehicles for business. That's the governments fault mostly, what was designed for farmers and contractors mostly got discovered as an attractive loophole for lawyers and real estate agents and other folks who incorporated as any sort of business and then obviously their accountants told them to take advantage of it.
There was a "truck" rating and a gross vehicle weight rating decent tax deduction, but then they gave it to enclosed SUVs because they are classed as trucks, so the vehicle companies made them bigger, so they would qualify for the tax break.
All of a sudden huge numbers of people were looking at a more or less free ride, so they took it. They were loads cheaper to buy for them then smaller vehicles with better mileage because more of the cost was deductible, 100 grand deduction for vehicles over 6000 lbs. Even with better mileage, it still made no economic sense to buy the smaller more fuel efficient vehicles unless you were like driving two million miles a year or something ludicrous like that, the fuel savings don't come close to the actual savings in taxes for most drivers at a more reasonable miles per yer rate say 10-30 thousand miles, something like that..
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