According to the statistic of the Internal Revenue Services, in the year 2019, the average tax refund made was $3,163, and about 75% of these taxpayers collected a check. So if you find yourself receiving a tax refund, then you are being paid back money subtracted from your paycheck. The refund is your money and it can be used in whatever manner you like. You have the option of spending the refund on a new car or you could think of settling other expenses like your credit card debts. Now if you decide to get a vehicle, then you would have to consider other options like if you want to buy or lease your car. Do you want to pay for an inexpensive car? Or do you want to plan and get a newer ride? Currently, there are a lot of car dealership companies across the country that offer customer incentives during Tax Season. The sales of cars are usually tight during January and February because most individuals often try to settle the bills of the holiday season.
Buying Your Car From a Private Seller
When dealing with a private seller, it comes with its advantages, sticking to this option you won’t have to worry yourself about making any loan payment, and you won’t have to be forced to acquire any auto insurance. Buying an older vehicle would draw less attention compared to buying a new car. However, using this option has its disadvantages like the older vehicles could break down at any moment in time, the primitive security systems could lead to car theft, and so on.
Research Large Purchases Such as Cars
As a smart car owner, you would first try to make the necessary research, and find out how much the related expenses would cost you because not all cars would last the owners for a very long time with spending on It. You would need to find out some information like if the vehicle has been in any form of damage or if it has any maintenance issues before thinking of purchasing such a vehicle. You might also need to pay some professionals to have the car thoroughly inspected for any sort of problems or defects, this is because it is not every accident that is reported to the insurance company, so there won’t be any physical evidence that the vehicle had any issues.
Using Your Tax Refund to Acquire or Lease a New Car
A lot of people use their tax refund to make huge down payments for a newer and better model of a car that they want, making huge payments down would mean that you don’t have to worry about some monthly payments, and makes your approval rate get higher. Also with huge down payments, banks are less likely to as for a co-signer, this would make your efforts for obtaining more credit in the future a lot easier. Deciding on buying or leasing a car might be the smart play for you. However, keep in mind that there might be pitfalls along the way. The tax code always changes frequently, so there is a chance that you might not get another check the following year.
Can I use my current car to trade in on a new lease?
It depends. If your current car is paid for, you can certainly use it as a trade-in. Just be sure you know its fair trade-in value, and that the dealer gives you full credit when your lease payments are calculated. If you still owe on your car, you will want to get the “payoff” from your finance company and compare that amount to the trade-in value of the car. If the trade-in value is higher, you have “trade equity.”
At The Vantage Auto Group, we save you time, money and peace of mind when it come to Buying your New Car!
No need to deal with the headaches of sitting in a dealership for hours on end and haggling with pushy sales reps. With our robust dealer network, we’re able to get wholesale pricing and guarantee the most competitive lease or purchase price on any new vehicle. We handle all makes and models, so you can be confident that we’ll find the perfect vehicle that fits your needs.
There are many places to lease or purchase your next vehicle. The products are the same regardless of the source. So it’s the people who make the difference. Our staff is passionate about what we do. We are all car enthusiasts and understand your excitement about finding the right vehicle at the best possible terms. Along with our enthusiasm is our commitment to be transparent about your lease / purchase and our pledge that all dealings with us be fair, and yes, even fun!
