During tax season, we Americans often dream about the possibilities of a refund. If you pay your taxes in order to get a large refund in the spring, you may have big plans for any refund dollars coming your way. If you are looking to use your tax refund this year to purchase a new or used vehicle, let me help you.
According to the Internal Revenue Service, the average federal tax refund is around $3000 in recent years and that can go a long way to getting you into a new or used vehicle. There are several ways you can use your income tax refund to get you sitting pretty in a newer car. Use these tips to get you started in the right direction.
- Make a budget–It is important that you calculate exactly what you can afford. Don’t let a lack of planning or budget steer you off the road. There are several online auto loan calculators you can use.
- Decide on Payment–You can use your refund for a down payment or calculate it into your monthly payments. If you use it as a down payment, it will reduce your overall monthly payment or the length of time you are paying on your loan. If you choose to use it for monthly payments, that $3000 return could make 12 months of $250 payments. The choice is yours!
Uncle Sam sends out tax refunds every year to millions of Americans. Apparently, one-third of us spend our income tax refund on auto-related purchases, according to a survey in the Wall Street Journal. So, whether you are shopping for a new or used vehicle this spring, come see me and let me help you use your refund to your fullest advantage.