How to Maximize Your Tax Refund on a Vehicle
Now that tax season is here, many people look forward to using their refunds on their vehicles. If you are not sure what you should do with your refund, take some time to consider your needs. You might be in the market for a new vehicle. Or, you might be looking to make some improvements on an old one if it is no longer running or reliable. Before you rush out to the dealership, consider how to maximize the value of your tax return.
The average refund ranges from $1,500 to $3,000. Depending on your situation, your tax return may be higher or lower. Think about your current transportation situation. You should consider spending a portion of your tax refund on your ride and stashing the remainder away into a savings account for a rainy day.
Make Improvements to an Older Vehicle
If you are not ready to purchase another vehicle, you could use your tax money to repair and upgrade your current vehicle. The right repairs and car and truck accessories can improve your ride’s performance, reliability, longevity, appearance and comfort.
Shop for a New Automobile
Many dealers have television ads claiming they can give you the best deal on vehicles and that all you need is a few hundred to thousand dollars down. These advertisements may sound enticing, but sometimes they are too good to be true. Research your options and do not forget to take dealer reputation, car safety ratings and recall notices into consideration. You might feel you do not have any time to waste, but if you do not explore your options, you could end up losing time and money on the wrong purchase. Keep in mind that a bigger down payment means lower monthly payments.
Pay Down an Existing Car Loan
If you do not feel it is time to replace your vehicle, you could use your tax refund to pay down what you owe on an existing car loan. Be sure to inform your lender if you want the extra payment to go towards the principal or entire balance. If you apply it to the principal, it can help to lower the overall amount owed on the vehicle. You should ask your lender which method is best for your situation.
For more information on how to make the most of your tax refund, stop by or call us at Chillicothe Truck and Accessories at 740-773-8782. We carry a wide variety of new and used trucks and accessories. We are committed to every one of our customers. No matter what your vehicle needs are, you can count on us to assist and earn your satisfaction.