Ways to Use Your Income Tax Return Toward a New Vehicle

After the tax season, many people are left with a refund to decide what to do with. Some spend it on things they don't need, while others use it to pay off debt. For those looking to purchase a new or pre-owned vehicle, using your tax return as a down payment is a great way to get the vehicle you want. There are many ways you can use your tax return toward buying a new car, but here are some of the best ways we suggest for doing so.

Use Your Tax Refund Toward A Down Payment

The first way you can use your tax refund is as a down payment. A down payment on a car loan is an initial lump sum payment that helps lower your monthly payments by reducing the amount of money you have to borrow. You can use any money towards a down payment, but the larger, the better. If you put 20% down or more on a new or used car loan, you often won't have to pay interest on the loan at all.

Consider Buying a Pre-Owned Vehicle With Your Tax Return

Purchasing a used car can be an affordable option for those looking to purchase a used vehicle. Our vehicles undergo a rigorous safety and performance check, ensuring you have the best vehicle with the best warranty.

Service Your Existing Vehicle

Maybe you already have a vehicle you plan on keeping, but it just needs some repairs or maintenance work. Using your tax return income to service your vehicle and get it up to par is a great way to prolong its life expectancy.

Pay Off An Existing Loan

To significantly reduce the amount you owe on your vehicle, you can make a few extra payments or pay off the balance in full with your tax refund. You may lower the amount of interest you would have paid over the life of your loan by doing this.

Contact a sales representative to learn more about applying your tax refund toward new or used auto purchases.