Put that tax return to 'automotive' work!

Tax season is well underway, and there is a good chance your tax return is headed to your bank account as we speak! This sudden influx of money is always exciting, but we know how confusing it can be when it comes to figuring out how to best use it. Because we're in the auto industry, we're naturally biased and suggest using the money to get your next ride! Whether you want a new vehicle or a used vehicle, that extra money can be used in a few different ways to make your monthly payments easier.

The Down Payment

Lease payments are very attractive, but you probably notice that to get the best rates you need to put a fair amount of money down. With your tax return, you can lease a new vehicle and have your down payment ready to go. With used vehicles that cost less, you can still put in a down payment and know your tax refund will go even further.

Make Payments

If the down payment suggested for your next vehicle is still a bit higher than your tax refund, all is not lost. You can still use that money after you've bought or leased a vehicle to pay down several months of the car payment at once. With the national tax return hovering around $3,000, you can make a notable dent in the payments and get ahead.

Other Automotive Options

If you aren't ready to part with your current vehicle yet, here are a few things you can do that are "automotively" advantageous:

  • Principal Payments: you can use the tax return towards the principal balance on your current car payment, which'll bring you even closer to that no-car-payment lifestyle!
  • CD/Savings: you can consider putting your tax refund in a savings account or CD to grow, that way when you are ready for a new car, you'll have money that's set to go to work.
  • Service/Accessories: the older a vehicle gets, the more services you'll need. Instead of being blindsided by a maintenance cost, you can open up a secondary savings account to help cover any costs. You could also buy some accessories to update your current ride. Popular options include all-season floor mats, bike racks, cargo box, and organizers.

Once you have that tax return, visit our dealership to see how far you can stretch it!

Categories: Finance
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