Using An Income Tax Refund to Buy a Car

Are you hoping to use an income tax refund to buy a new vehicle? Whether you are looking to buy or lease a brand-new car, truck, or SUV, tax season is always a good time for purchasing a new ride. Most dealerships offer great tax season specials. Generally, American taxpayers can get around three thousand dollars in income tax returns each year. This can mean smart car buyers can use this cash as a substantial initial payment towards a new car or truck which generally gives customers with low interest rates and can even decrease regular monthly payments when financed.

how to use your tax return to buy a car

Purchasing a Car with An Income Tax Refund

If you want to spend your refund on a new vehicle purchase or lease, we have some good news for you. The average refund is typically enough to cover part of the down payment. If you’re not looking to get a new car, you could also utilize your return to pay off a part or all of your existing car loan.

If you have questions about how to use your income tax refund to purchase a new vehicle we have some suggestions and tips from our automotive financing professionals.

  • Using Your Tax Refund Towards Down Payment:

  • Our automotive financing specialists suggest paying a substantial deposit to help you get a car loan for your next car purchase. Even if you are opting to lease your new car, having a significant down payment can help reduce your monthly payments. By utilizing your tax return as a down payment, customers might qualify for better car financing choices.

  • Income Tax Return For Pre-Owned Vehicle Purchasing:

  • While brand-new cars have their own set of advantages, a used car is a cost-effective choice for many budget car purchasers. With a little bit of research, it is very easy to find a good deal on a used car. And smart car buyers can use their income tax return as the deposit towards the purchase of that vehicle.

  • Using Your Cash For an Auto Lease:

  • Beginning a vehicle lease with a bigger down payment can substantially lower how much the monthly payment will be. It is very helpful also when customers wish to extend the lease since most dealerships will generally allow the customer to extend their existing lease with a lower monthly payment on a month-to-month basis.

  • Pay Down a Current Loan:

  • Using your return to settle an existing auto loan is also an outstanding idea. Customers can use that extra cash to significantly lower the existing balance on their current automobile loan. And they can do this either by making a few extra payments or by paying off the balance completely. Paying off or significantly minimizing the remaining balance will lower the amount of interest that would have been paid over time.

Using An Income Tax Refund to Buy a Car | Sterling McCall Nissan