It’s that time of the year.
Tax time is quickly approaching and soon many taxpayers will be filing their returns and thinking about ways to use their refunds. There are many options for how to spend that much-anticipated windfall, but one of the best is to invest in a high-quality vehicle from a strong used car dealership.
Always Consider the Options
There are a few paths to take when deciding how to spend a tax refund, but buying a used car should be high on the list. A car is often one of the largest purchases people make. zAt the same time, a tax refund is one of the largest chunks of cash may people may get their hands on all year. A tax refund provides a financial opportunity that only presents itself once a year. Using your refund to purchase a high-quality used car ensures your money won’t be frittered away on impulse purchases, but will go toward something of value.
Benefits of Using a Tax Refund to Purchase a Used Vehicle
Don’t think of your tax refund as “found” money; rather, think of it as money that’s being returned to you at the end of the tax year. It’s your money that the government has, in a way, forced you to save. If that money can help buy a quality vehicle, why not take advantage of that direct deposit or check in the mail?
Prospective car buyers with trade-in vehicles can decrease their monthly payments by applying the value of the trade-in toward a down payment. Taking advantage of special deals during tax time at Shabana Motors may also save money on interest charges. Even a smaller tax refund can go a long way toward the down payment for the reliable used car you need.
Using this money may also provide a head start on those payments. While using the funds as a down payment is a smart idea, you may also be able to save some of that refund to use as a reserve to make future payments. Putting aside approximately $3,000 from a tax refund can help make nearly a year’s worth of car payments, depending on the monthly amount you negotiate at the dealership.
Buyer Beware?
There are a few caveats to take into consideration when using your state or federal tax refund to pay for your vehicle purchase. There are a lot of promotions this time of year designed to lure buyers into the showroom. Sometimes the advertised deals are too good to be true. They often are restricted to one or two vehicle types, or even just one car or truck. Once a buyer begins talking to the salesperson, it may be easy for the salesperson to make a quick switch to a more expensive vehicle purchase, where that refund will not go as far. Remember to read the fine print for any advertised deals before you arrive at the dealership. Some dealerships will promise to double the amount of your tax refund, but the fine print will explain the amount that qualifies for “doubling” is limited.
When you shop at a good family dealership in Houston, you won’t have to be concerned about these tactics. If you’ve decided to put your refund to good use, come see us. We will do whatever it takes to ensure you drive away in a high-quality used car with the best deal possible.
