Using Your Income Tax Refund to Purchase a Car

Are you thinking about using a tax refund to get a new car? Whether you are looking to buy or lease a brand-new car, truck, or SUV, tax season is always a great time for buying a new car. Most dealerships offer great income tax season deals. Usually, American taxpayers can receive up to $3,000 in tax returns each year. This means that smart car buyers can leverage this money as a nice deposit towards a new car, truck, or SUV which typically provides customers with low interest rates and even decreases monthly payments when financed.

how to use your tax return to buy a car

How to Use Your Income Tax Return for Buying a Car?

If you wish to spend your income tax return on a new vehicle purchase or lease, we have some excellent news for you. The typical income tax refund is typically enough to cover a substantial part of the down payment. If you’re not wanting to get a new vehicle, you could also use your return to pay off a part or the entirety of your existing car loan.

If you have questions about how to use your income tax return to buy a new car, truck, or SUV we have some suggestions and tips from our automotive financing experts.

  • Using Your Income Tax Refund For a Down Payment:

  • Our automotive financing professionals recommend paying a significant down payment to help you get an auto loan for your next car. Even if you are opting to lease your next car, having a considerable deposit can help lower your monthly payments. By using your tax refund as a down payment, customers might qualify for better vehicle funding choices.

  • Income Tax Return For Pre-Owned Car Buying:

  • While new cars certainly have their own set of advantages, a pre-owned car is an affordable choice for many budget car shoppers. With a little research, it is very easy to discover a great deal on a used vehicle. And smart buyers can utilize their tax refund as the down payment towards the purchase of that car.

  • Using Your Cash For a New Car Lease:

  • Starting a car lease with a larger down payment might substantially minimize how much the month-to-month payment will be. It is very helpful even when customers wish to extend the lease because most car dealerships will generally permit the customer to extend their present lease with a reduced monthly payment on a month-to-month basis.

  • Pay Down Your Current Loan:

  • Using your refund to pay off an existing auto loan is a superb idea. Customers can make use of that extra money to significantly reduce the existing balance on their existing car financing. And they can do this either by making a couple of extra payments or by paying off the balance completely. Paying off or considerably decreasing the remaining balance will lower the amount of interest that would have been paid over time.

Using Your Income Tax Refund to Purchase a Car | South Pointe Honda