Ways to Use Your Income Tax Return Toward a New Vehicle

If you're expecting a big tax refund this year, you may be looking forward to cashing that check and spending it on something exciting - like a new vehicle. You can, of course, use your tax refund for a down payment on the car you've been dreaming about. And there are plenty of other innovative ways to use your tax return toward owning a new car.

Use Your Tax Refund Toward A Down Payment

Make a down payment with your tax refund. If you're planning to buy or lease another vehicle, use the funds from your tax return as a down payment. A larger down payment can lower your monthly payments and help you save on interest throughout your loan.

Consider Buying a Pre-Owned Vehicle With Your Tax Return

A pre-owned vehicle is an excellent choice for a car buyer on a budget. Many quality pre-owned vehicles are available, and their prices are typically significantly lower than their new counterparts. Some used cars are just as reliable as new ones. If you want to buy a used car with your tax refund, see these tips for buying a used vehicle from a dealership.

Service Your Existing Vehicle

Another way to use your tax refund on your vehicle is by servicing it. The best way to keep your car running well is regularly servicing it. If you neglect regular maintenance items such as oil changes and tire rotations, you will have to spend more money on major repairs later on. Instead of going without oil changes until something goes wrong, you can use your tax refund money to make them happen now to avoid this issue later down the road.

Pay Off An Existing Loan

One of the worst parts about taking out a loan is dealing with the interest payments that come along with it. Paying down any outstanding loans can help eliminate those interest payments, which means more money for you in the long run.

We hope this brief overview of a few creative tax return car purchase strategies has been informative. If you are interested in these opportunities, don't hesitate to get in touch with us for further details.