How to Use Your Tax Refund on a Vehicle
It’s tax season and many families across the U.S. are filing for their tax returns. While you wait to receive your refund, consider how you want to save or spend it. If you are looking to buy a car during this time of year, you’ll need to know the best ways to use your tax refund on your next vehicle.
Financing for a Used Car with Your Tax Return
Use as a Down Payment
One of the best times to buy a used car is tax season. Why is this? Saving for a down payment is one of the hardest steps to buying a vehicle. Rather than waiting months to save the cash, many shoppers who purchase a vehicle during tax season use their tax refund as their down payment. By utilizing their tax refund this way, budgeting for the vehicle is made much easier. All that’s left for these buyers is to pay off the monthly payments on time.
Put Towards an Existing Car Loan
If you are already paying off a car loan, it wouldn’t make sense to look into buying another vehicle. Instead, we recommend putting your tax refund into paying down your existing car loan. Doing so will help you pay off the loan sooner and save you a lot of money that would have otherwise been put towards interest.
Repair Your Current Vehicle
Even with a tax return, buying a vehicle may not be realistic for someone with a low income. Instead, you may be better off repairing or upgrading your current vehicle. Have an oil leak? Need new tires? You can upgrade your current ride for potentially less than it could cost to replace. Of course, not all repairs are worth the money, so consider your options before committing to any fixes.
Ready to start shopping for a used vehicle? Check out our large inventory here at Broadway Credit! Found one you’re interested in purchasing? Contact us and we will help you finance and take it for a test drive.