As a dealership owner, I see a lot of clients who receive a significant tax refund each spring and want to use it towards the purchase of a vehicle. If you're in the market for a car, your tax refund could be the perfect opportunity to make that purchase. Here are five great ways to use your tax refund to purchase a new car and a couple of scams to watch out for:
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Save for a down payment: A large tax refund could help you save for a down payment on your vehicle purchase. The more you can put down, the lower your monthly car payments will be. Be aware though, dealers know you have tax money too and some shady dealers inflate their prices during tax season for that reason.
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Cover sales tax: Depending on where you live, you may need to pay sales tax when you purchase a new car. Your tax refund can help you cover that expense. This is one of the big reason people wait until tax time to purchase a vehcile as they just can't come up with that big chunk for sales tax throughout the rest of the year.
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Pay for extra options: If you want a car with all the bells and whistles, your tax refund can help you pay for those extra options. From upgraded audio systems to heated seats, your tax refund can help you get the car you really want.
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Cover extended warranty: An extended warranty can provide peace of mind and protect you from unexpected repairs down the road. Your tax refund can help you cover the cost of an extended warranty for your new car. Whenever possible, its a good practice to not finance these extras as you end up paying interest on them
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Take care of other expenses: There are miscellaneous expenses that come with buying a new car, from licensing fees to insurance costs. Your tax refund can help you take care of these expenses, leaving you with more money in your pocket to put towards other things.
By using your tax refund in one of these five ways, you can help make your dream of owning a car you love a reality. If you have any questions about using your tax refund to purchase a vehicle, please don't hesitate to contact me. I'm here to help!
Dustin Kerr
(417) 629-7576
Car Solutions 4 U
