How To Put Your Tax Refund Toward A New Car

Man holding a tax refund check

Tax season has officially arrived, meaning you are probably counting down the days until your refund hits your bank account. If you are expecting a nice influx of cash, you will be in a prime position to make a big purchase. With that in mind, check out some tips for using your tax refund to buy a car.

Reduce the Loan Amount by Increasing the Down Payment

Do you want to get a new car but aren’t sure you can handle large monthly payments? You can reduce the amount you finance quite a bit by using your tax refund as a down payment. Consider putting down 20 percent or more if you can swing it. Then you can take out a smaller loan, meaning your monthly payments will be much less.

Trade-in Your Current Vehicle

You can also reduce the loan amount by trading in your vehicle when buying a new one. First, the dealership will value your trade-in to see how much it’s worth. Then the team will take that amount off the cost of the new car. This can lead to big savings, so you can get a vehicle with all the features you want without spending nearly as much cash.

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Consider a Used Vehicle

If you want to get a fantastic deal, consider going with a used car. Even cars that are a year or two old come with significant savings. This means you can get the latest features without spending as much money.

If you go this route, make sure you check the vehicle history report. The document will provide all kinds of valuable information, including the car’s accident history.

Are you ready to put these tips into action? If so, Amigo Chrysler Dodge Jeep Ram in Gallup, New Mexico, is here to help. You can browse our inventory of new and used vehicles online, including cars under $15,000. Once you find something you like, you can schedule a test drive, value your trade and get pre-approved for financing through our website. On the other hand, you can also come in and handle the entire process in person. Whether online or at our dealership, we will do everything we can to help you find the right vehicle for your budget and lifestyle.

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