Using An Income Tax Refund to Buy a Car

Are you thinking about using your income tax refund to purchase a new vehicle? Whether you are looking to purchase or lease a brand-new car, tax season is always a good time for purchasing a new ride. Most car dealerships offer excellent income tax season deals. Generally, American taxpayers can receive up to $3,000 in tax refunds each year. This can mean smart car buyers can leverage this cash as a nice initial payment towards a new vehicle which generally provides customers with low interest rates and can even reduce monthly installments when financing.

how to use your tax return to buy a car

How to Buy a Vehicle with Your Tax Refund?

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

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

  • Using a Tax Refund Towards a Down Payment:

  • Our automotive financing specialists recommend paying a substantial deposit to help you get an auto loan for your next vehicle purchase. Even if you are choosing to lease your new car, having a considerable deposit can help decrease your monthly payments. By using your tax refund as a down payment, purchasers might receive better auto financing choices.

  • Tax Returns For Pre-Owned Vehicle Purchasing:

  • While new cars certainly have their own set of advantages, a pre-owned car is a cost-efficient option for budget car buyers. With a little bit of research, it is very easy to find a great deal on a pre-owned car. And savvy buyers can utilize their income tax refund as the down payment towards the purchase of that car, truck, or SUV.

  • Using Your Cash On a New Car Lease:

  • Beginning an automobile lease with a larger down payment can substantially reduce how much the month-to-month payment will be. It is very beneficial even when customers wish to extend the lease since most car dealerships will generally allow the customer to extend their present lease with a reduced monthly payment on a month-to-month basis.

  • Paying Down Existing Car Loan:

  • Using your return to pay off an existing auto loan is an exceptional idea. Customers can utilize that extra money to substantially decrease the balance on their current car financing. And they can do this either by making a few extra payments or by paying off the balance completely. Paying off or significantly reducing 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 | Town North Nissan