Use Your Tax Refund To Save On Car Shopping

(StatePoint) Like many other people, you probably have taxes on your mind right now. Figuring out if you have a tax refund coming your way can be an exciting time. But tax season doesn’t have to be all about crunching numbers and filling out forms.

“If you’re in the market for a newer vehicle, tax season can be the perfect time to treat yourself to that upgrade,” says James Wright, vice president of company stores at Byrider, the nation’s largest used car and finance network of dealerships.

Wright’s offering a quick rundown of the reasons why tax season is the best season for searching for the right vehicle for you.

Putting your tax refund towards a down payment means a lower total cost: The best reason why you should upgrade your car is the extra cash you get from your refund. According to the IRS, 77% of all 2020 tax returns ended up with refunds, so the odds are in your favor that Uncle Sam will hand you a check and you’ll have more money in your pocket. That means you’ll have more money to spend on a down payment for a car. The higher your down payment, the lower your monthly payments, saving you money in the long run. This is especially true for places that allow you to customize your payment plan, such as Byrider, and you can even use your anticipated tax refund to make a deal before you have the check in hand.

Tax season dealership events and sales: Car dealerships know that tax refunds mean that people have more money to spend, and will often have special tax season sales to further entice buyers into signing up for a payment plan. Many will even help you file your taxes. For example, many Byrider locations host Tax Event sales that file taxes and advance customers’ refunds. Take advantage of promotions like these to stretch your tax return even more. To learn more, visit byrider.com.

The extra money in your pocket, the need for dealerships to move inventory, and great tax event promotions at dealerships all combine to make tax time the best time to shop for a car, stresses Wright.

“If you’ve been putting off upgrading to a ‘new’ used car because it seems out of your budget, this tax season just might change that, even if you don’t have a perfect credit history or tons of money in the bank. That higher down payment can save you some serious cash on a car payment plan in the long run, making you glad you made the most of your refund this tax season,” says Wright.