Put Your Tax Refund to Good Use with a New Car

After the rugged toll of winter, many North Carolina families are in the market for a new or used car purchase this spring. Whether it’s a discretionary purchase after enjoying a fruitful financial year or a cold, hard necessity after weathering a winter storm, evaluating the many car-buying options can be an overwhelming process. Plus, many families struggle to find the resources for a respectable down payment or the backing to qualify for an auto loan. This problem is escalated even further for families with poor credit, as poor credit auto loans are difficult to obtain, and purchasing a new car is nearly impossible without some sort of financing grace. 

 

But don’t worry. We have the solution.

That said, if you find yourself in this boat, there is no reason to panic. There are a couple of viable solutions to this financial conundrum: 1. Put your tax refund to work. 2. Find a reputable in-house financing car dealership to offer a loan for your purchase. Both of these considerations provide opportunities you won’t find elsewhere. Let’s take a closer look.

Your tax refund can help you land a new ride.

Tax season is right around the corner, and if you’re in the market for a new car this spring, you should know that tax refunds and a sizable car purchase make a delightful match. Recent data suggests that the average American tax return hovers around $3,000. This hefty dollar amount can be used in a myriad of ways to help fund a major purchase like a new vehicle. Instead of blowing your refund on something fleeting and fun, why not take a more practical approach and make an investment that will last for years? Here are a few ways you can use your refund towards getting on the road in your new whip.

#1: Apply your refund towards a down payment.

If you’ve ever been involved in a motor vehicle sale, you know that purchasing a new or used car comes with a lot of paperwork and financial details. It’s essential to understand the fine print and have your dollars work for you as much as possible. Using your tax refund towards a down payment on your car purchase is one of the best ways to apply your refund. Increasing the amount of your down payment upfront not only reduces your monthly payments, but it also means you’ll pay less interest in the long run. This reduces your overall costs and makes a new car purchase more manageable from a financial standpoint. An in-house financing car dealership may also offer you a better interest rate if you can pay more from the start. This is something to consider as you begin browsing your options.

#2: Get a jump-start on all the fees.

If you’ve ever purchased a new or used car, you know that your financial obligation exceeds the ticket price. To legally drive and operate your new ride, you’ll need to register it with the state and pay all applicable fees. The most common fees you’ll see when visiting the Department of Motor Vehicles (DMV) include title transfer, taxes, and licensing fees. Some states also assess annual property tax fees based on the weight or age of your vehicle. Knowing what to expect during your visit to the DMV can save you an unpleasant surprise and help you establish an overall budget for your new car. 

#3: Work ahead on insurance. 

Insurance is another necessary requirement for operating a motor vehicle. You might shop around for insurance plans prior to hitting the dealership to get a baseline on the average costs. Sometimes, you can reduce your monthly premium costs by paying months in advance. If you know you’re planning on getting a new ride, paying for your car’s insurance policy in advance is a great way to use your tax refund.

#4: Poor credit? No problem!

In some cases, even the biggest tax refund isn’t enough to buy that new vehicle you’ve been eyeing. Many people struggle with the woes of poor credit and find this to be the biggest roadblock when it comes to making a big purchase like a new car. Even buyers who go the used car route will be engaged in an uphill battle when contending with poor credit. Luckily, an in-house financing car dealership like AutoMax can help ease this burden.

 

Dealerships like AutoMax specialize in offering poor credit auto loans to those who need it most. These car dealerships can customize their loan packages and will often offer financing to customers who would not be able to obtain it from a more traditional lender. The process is quick, convenient, and worth a look. Whether you’ve experienced a hardship that’s taken a toll on your credit score or you’re still recovering from a mistake in the past, these dealerships offer an avenue for recovery. 

 

It’s time to invest your tax refund with AutoMax! 

With your 2020 tax refund en route, it’s time to begin browsing all the options for your new car! AutoMax is a trusted vendor throughout North Carolina, serving all the major metros like Raleigh, Durham, Youngsville, and Henderson. Known to have an extensive inventory, excellent in-house financing options, and a top-notch team of sales staff and customer service representatives, you really can’t go wrong when choosing AutoMax. Working with AutoMax offers the unique opportunity to create a customized financing plan while having your pick of new and used cars from one of the biggest inventories in the state. 

 

Spending your tax refund on a new car is definitely an investment worth considering. If you’re ready to explore the options, stop by our Henderson or Raleigh dealership today. Our friendly sales team is equipped to answer all your questions, and our finance team can get you set up with a loan that’s perfect for your situation. We’ll have you on the road in a new set of wheels in no time!