As part of the government’s Emergency Economic Stabilization Act, car buyers will get a small tax break: The cost of sales and excise tax on a new car will be deductible from federal income tax. A larger measure that would have exempted interest on financing of new car purchases was dropped, as was a provision to grant incentives to buyers of new “American-built” cars who traded in old gas guzzlers known as "Cash for Clunkers."

However, the tax rebate for buyers of plug-in hybrids was extended to the first 200,000 cars per manufacturer, rather than 250,000 total.

Much bigger incentives go to public rail systems, including Amtrak, and to developing better batteries for plug-in electric cars and hybrids. These measures promise in some way to aid the auto industry and consumers.

Considering a new car? Read "How to buy a car in today’s market."

—Eric Evarts