Some new car tax benefits expire at year end

(December 4, 2010) SANTA MONICA, Calif. — There are a number of current new car tax credits expiring at the end of December. encourages would-be buyers to consider this timing when making purchase decisions.

"Credits are expiring once and for all on a huge swath of new cars, unless there's a successful lame-duck effort in Congress to extend them," noted Features Editor Carroll Lachnit.

For full list of vehicles eligible for the tax credit click here.

"Hybrid, diesel and compressed natural gas (CNG) vehicles purchased after Dec. 31 will no longer be eligible," noted Lachnit. "But the tax credits for plug-in hybrids like the Chevy Volt and electric vehicles like the Nissan Leaf are likely to remain in effect for several years."

However, according to Features Writer Ron Montoya, "Tax credits aren't the only factor to consider, especially since buyers have to wait until spring to realize the savings. Meanwhile, dealers may push up prices for in-demand cars, and that can negate much of the tax savings if buyers aren't careful. For some models, buyers will realize better savings if they wait until 'hot' models cool off."

Montoya points to the Honda Civic GX and Hyundai Sonata Hybrid as two examples. Read more on those vehicles' pricing trends.