How to Purchase a Car with An Income Tax Return?

Are you hoping to use an income tax refund to buy a new vehicle? Whether you are looking to buy or lease a new car, truck, or SUV, tax season is always a perfect time for upgrading your ride. Many dealerships offer excellent income tax season offers. On average, American taxpayers can get around $3,000 in income tax returns each year. This means that smart car buyers can use this cash money as a substantial payment towards their next vehicle which often provides customers with low interest rates and even reduce monthly payments when financed.

how to use your tax return to buy a car

How to Use Your Tax Return for Purchasing a Car?

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

If you have questions about how to use your refund to get a new vehicle we have some recommendations and tips from our automotive financing experts.

  • Using Your Income Tax Refund For a Down Payment:

  • Our financing specialists recommend paying a considerable deposit to help you get automotive financing for your next car. Even if you are opting to lease your new vehicle, having a substantial down payment can help lower your monthly payments. By using your refund as a down payment, customers may receive better vehicle financing choices.

  • Tax Return For Used Car Purchase:

  • While brand-new vehicles have their own set of advantages, a pre-owned automobile is an affordable choice for budget car buyers. With a bit of research, it is very easy to discover a good deal on a used automobile. And smart buyers can use their income tax refund as the down payment towards the purchase of that vehicle.

  • Use the Cash On a New Car Lease:

  • Beginning an automobile lease with a larger down payment might significantly reduce how much the month-to-month payment will be. It is extremely useful also when customers wish to extend the lease because most dealerships will generally allow the customer to continue their existing lease with a lower monthly payment on a month-to-month basis.

  • Pay Off Existing Car Loan:

  • Using your tax refund to settle an existing auto loan is an outstanding idea. Customers can utilize that extra money to substantially lower the balance on their current car financing. And they can do this either by making a couple of extra payments or by paying off the balance in full. Paying off or significantly lowering the remaining balance will lower the amount of interest that would have been paid over time.

How to Purchase a Car with An Income Tax Return? | Mike Smith Nissan