3 Reasons to Spend Your State Tax Refund on a Car

state tax refundWhile the mere mention of tax season makes some people cringe, there are others who can look forward to it knowing they will be receiving a state tax refund. If you fall into the latter category, it’s time to start thinking about how you’re going to spend your money. There are probably a number of items you’ve had your eye on over the past few months, or maybe you’re finally thinking about taking that vacation you’ve been putting off.

Whatever you might have in mind, it’s important to consider all your options and make sure you use your refund as wisely as possible. That’s why many people choose to forego the frivolous purchases and put the cash they get back toward a new (or new to them) car. If you could really use a newer, more reliable vehicle, getting a refund is the perfect excuse to start car shopping. Think carefully about the following reasons to bring your state tax refund to the dealership.

Ability to Put Down a Sizeable Down Payment

Saving for a down payment on a vehicle is no easy task, but with your refund, you’ll have the ability to put down a sizeable amount. In doing this, it may open up the doors for you to qualify for better loan options and lower monthly payments that would otherwise not be available. If you combine your state tax refund with a trade-in, you’ll increase the odds of getting an even greater deal and saving more money in interest overall.

Opportunity to Make a Long-Lasting Investment

Although taking a trip, paying down a credit card, or making home improvements are not bad ways to spend your refund, it’s essential to evaluate the long-term value of how you plan to allocate your hard-earned cash. A dependable car is a long-lasting investment because it’s something that you will always need, and this may be the only opportunity you get for a long time to take advantage of having the funds. A tax refund is often seen as a bonus, so whatever you buy with it should be special and beneficial to your life.

Chance to Rebuild Your Credit

If you have a credit history that’s less than ideal for buying a vehicle, tax season is a good time to begin rebuilding it. Instead of pulling your credit report, many lenders will accept your pay stubs, W-2, and projected tax refund as proof of your capability to pay for a loan. Once you receive pre-approval and agree to financing terms, you’ll be on your way to repairing your credit with each on-time car payment you make.

Peters Auto Mall Will Help You Spend Your State Tax Refund Wisely

If you want to get the absolute most out of your refund, buying a used car is the best way to go, and our staff at Peters Auto Mall is here to help you find just the right one. Our North Carolina dealership has a large selection of pre-owned vehicles in excellent condition. Oftentimes, our clients drive off the lot in cars that have all the features of the newest models at a much more affordable price. When you bring your refund to us, you have peace of mind knowing it’s going toward a new vehicle!