Most taxpayers don’t take a federal tax return into account when creating their yearly budget. So, when your tax return arrives, it’s like receiving a bonus, a bonus that can be applied to the purchase of a new car. Here’s why you should buy a car during tax season,
Poor Credit? No problem!
According to the Internal Revenue Service, the average federal tax refund rings in at around $3,000. That’s a hefty chunk of change, and it could make for a sizeable down payment on a car. If you have poor credit, most financial institutions will require a hefty down payment in order for you to secure financing.
Lower Your Monthly Payment
Since you have the money to make a sizeable down payment, you could very well work your way into a more affordable long-term financial situation as well. Making a larger down payment on a car means you’ll enjoy lower monthly payments over the course of the loan. That could leave you with more financial security over the next few years.
Upgrade to a Higher Trim
Saving for a new car is no easy task, but once you’ve done so, it’s easy to focus on the most affordable car you can find. Thanks to your tax refund, however, you could upgrade to a higher trim. Higher trims cost a little more, but they include more technologies and comfort features that will allow you to enjoy your time on the road for years to come.
If your car is on its last tire and you’re ready for an upgrade, tax season could present the perfect opportunity to get ahead of the game with a new car from Jimmy Michel Motors.