Are you hoping to use a tax refund to buy a new vehicle? Whether you are looking to purchase or lease a new car, truck, or SUV, tax season is always a great time for purchasing a new ride. Many dealerships have great tax season offers. On average, American taxpayers can receive up to $3,000 in tax refunds each year. This can mean smart car buyers can utilize this cash money as a substantial deposit towards their next car which generally provides customers with low interest rates and can even minimize regular monthly installments when financing.
Using Your Tax Return for Buying a Car
If you wish to spend your income tax refund on a new car purchase or lease, we have some good news for you. The average refund is usually enough to cover a big part of the down payment. If you’re not wanting to get a brand-new car, truck, or SUV, you can also utilize your income tax refund to pay off a part or the entirety of your existing auto loan.
If you have questions about how to use your tax refund to get a new car, truck, or SUV we have some recommendations and tips from our automotive financing specialists.
Using Your Income Tax Return For Down Payment:
Our automotive financing specialists recommend paying a considerable down payment to help you get a car loan for your next automobile purchase. Even if you are opting to lease your next car, having a substantial deposit can help reduce your monthly payments. By using your refund as a down payment, purchasers might receive better vehicle funding options.
Income Tax Returns For Used Vehicle Buying:
While brand-new vehicles certainly have their own set of advantages, a pre-owned vehicle is an affordable choice for budget car shoppers. With a bit of research, it is very easy to find a great deal on a pre-owned vehicle. And savvy car buyers can utilize their income tax return as the down payment towards the purchase of that vehicle.
Using the Cash For a New Car Lease:
Starting a car lease with a bigger down payment might substantially minimize how much the monthly payment will be. It is extremely useful also when customers want to prolong the lease because most car dealerships will generally allow the customer to continue their present lease with a reduced monthly payment on a month-to-month basis.
Paying Off a Current Car or Truck Loan:
Using your tax refund to repay an existing car loan is always an outstanding idea. Customers can make use of that extra money to significantly lower the existing balance on their existing vehicle financing. And they can do this either by making a few extra payments or by paying off the balance completely. Paying off or considerably reducing the remaining balance will reduce the amount of interest that would have been paid with time.