Posted Monday, May 15, 2017
Between private-party and dealership sales, an estimated 40 million used cars exchange hands annually. But did you know that many of these exchanges take place immediately during and after tax season? That’s right, using your tax refund to aid you in your search for used cars for sale is a common practice.
If you’re looking for a new vehicle and you’re not sure how to properly finance it or you’re searching for a better way to save money, tax season may be the answer you’re looking for. Here are three great reasons you should consider using your tax return to make a purchase from a used car dealership.
The most important thing to keep in mind is that your tax return is a lump sum of money coming back to you. If you think about it, it’s actually as if you’ve saved all of that money up all along, and you should treat it as such. Tax returns shouldn’t be treated as freebies, they should be used responsibly, just as money from a savings account would be. If you’ve been in need of a newer vehicle and your taxes are done, why not use them to make a down payment on a used car?
You might want to go all out and purchase a new car, but the truth is that a used car is just a smarter investment. While your tax return might make a small dent in a new car down payment, it can usually completely cover the payment on a used car. Not only that, but used cars often include newer features with a lower price tag. Not to mention the lower insurance rate!
Tax season is a great time to buy a car, which is why many dealerships run promotions around this time of year. So if you’re looking for an even better deal than you usually would on a used car, you should definitely keep your eyes peeled for new promotional ads popping up.