With tax returns comes the opportunity to make a purchase you've wanted or needed. If you're unsure of which way to best use your tax refund toward a vehicle, we have some suggestions below that may steer you in the right direction.

Use Your Tax Refund Toward A Down Payment

A down payment is the first payment made to secure a vehicle. The larger the down payment you make, the smaller your monthly expenses. By using your income tax return on a down payment, you can lower how much money you need to pay off each month. We recommend putting at least 15% down on a vehicle.

Consider Buying a Pre-Owned Vehicle With Your Tax Return

Though brand-new vehicles have their advantages, purchasing a used car is an excellent option for those looking for a more affordable vehicle range. Customers can feel confident in our selection of preowned vehicles as each one must pass our team's safety and performance check.

Service Your Existing Vehicle

Maybe you already have a vehicle you plan on keeping, but it just needs some repairs or maintenance work. Using your tax return income to service your car and get it up to par is a great way to prolong its life expectancy.

Pay Off An Existing Loan

One advantage of a tax return is that it allows you to lower your monthly loan payments for as long as you keep a vehicle. You can then use this money for other things, such as paying down debt or increasing your savings account. If you can save money each month from a reduced car payment, it will be easier to cover unexpected expenses later. This is especially useful for people who live paycheck-to-paycheck and cannot afford emergencies without going into debt.

You can use your tax return as a down payment if you purchase a vehicle. The amount of your tax return that you will be able to use will depend on what kind of car you're buying and how much your tax return is. If you plan to use your tax refund to buy a car, talk to us about it before you file. We can help identify the best way to file so that you can maximize the amount of money that goes toward your down payment.