Are you planning on buying a car with your tax refund? Do you have your eyes on any large purchase this tax season? If you don’t have a budget, you may be in line for the annual tax refund buying disappointment. But the best tax season car deal can also be the car deal you give yourself.
The average Tax Max client sees an annual tax refund of over $5,300 when they are claiming children. Most Americans spend their tax refund within 1 to 3 days. Where does all of that money go? Many payments from tax returns are pre-spent; the money is often dedicated and promised-out before it arrives in February.
Does this sound familiar? Are you looking for a tax refund advance to buy a car?
The key is to prioritize and budget. It is also important to plan for the future. How much of your tax return do you plan on using as a down payment on a car? Larger down payments now will save you a lot of money in the future. Shorten the life of your loan. Reduce the number of future payments. Pay off your car faster. Save money on interest.
A larger down payment using your tax return now can result in doubling your tax refund later. A big down payment using your tax refund check can also mean lower car loan payments for the rest of the year.
The big payday will come when you pay off your car in 10 to 15 months instead of 25 to 30 months. You can cut your total interest paid by more than half. Save thousands in interest alone!
Double your tax refund next year when your car is paid off, combined with the money that you save.
You do not need to spend your entire tax refund check on a new car. Save more money by paying down credit cards. Pay ahead on your car insurance. Eliminate as much in interest and payment plan fees as you can. Prioritize what purchases you need. Rank what down payments save you the most with your tax refund check. Plan ahead and save money on a car this tax season!