You’ve got your W2s, you’ve filed your taxes, and your tax return is on its way! Are you wondering how to use it wisely? If your ride is reliable, or comfortable, you may be thinking about putting your hard-earned money back into your wheels. There are several ways to pay your car tax.
1. Get a new car (or new to you) using your tax refund.
We’ll start with the obvious: There’s a reason you see a lot of ads (TV, direct mail, radio, newspapers, etc.) during tax season urging you to go to the nearest grocery store with your taxes in hand. Many people buy a new car, or a new one for them this season. If you feel like your current car is down to the last few miles, or if you’ve just been saving up for an upgrade, buy a car at tax time!
2. Pay off your taxes on an existing car loan!
If you’re not ready for a new ride, you can get your tax refund on your current car by paying off its loan. There is nothing like the feeling of raising a child. You won’t miss a single monthly payment, and you’ll free up more dollars for other needs, or by adding to your savings account.
3. Refinancing your car with your tax refund.
Not all investments are successful. In some cases, you will have to take a higher interest rate if you are unable to repay the loan. A lower down payment and lower credit score can result in a higher interest rate when it comes time to apply for a car loan. If you’ve been making payroll deductions and still have a lot ahead of you, you may want to consider getting a refund. Using your tax credit as the lowest payment on a car loan can help you save in the long run (and in the long run, if the monthly payments go down). It’s a great way to get a little help from your monthly tax check!
4. Pay and file your tax return.
According to one lesson, it’s wise to have a down payment of at least $1,000 on a new car loan. Fortunately, if you plan to file your tax return on the car, you can lower it even further. A higher payment means a lower monthly payment. In addition, if you extend your lease beyond what was previously available, you can also increase your purchase price. Read your contracts carefully and do a lot of research to make sure you’re paying the right amount!
5. Use your tax refund for stock market upgrades.
Maybe you already have your car and want to buy a new one. If so, congratulations! It’s great to have a car you love! 🙂 If you are lucky enough to live in that area, the best way to spend your tax dollars is to upgrade your car! There are tons of aftermarket upgrades for all types of cars and trucks and the right ones can increase the value of your car. So keep looking at those wheels, speakers, luggage racks, and windows you’ve been eyeing!
6. Use your tax dollars on car repairs.
Sometimes the tax comes when you need it most. Many people struggle with unexpected renovation costs. If you are one of them, the bounced check will come in handy. Not everyone needs a new car or a lot of upgrades. Some people just need to get their car back on the road and get going. Even if you haven’t had any major problems, it’s a good idea to have a mechanic give your car a good service. protector maintenance options.
7. Pay your car insurance up front and get your tax refund!
Last but not least, the best way to get a tax refund is to buy or renew your car insurance. There are many advantages to paying up front instead of paying monthly, including peace of mind, no payments, and extra dollars in your monthly budget. If you want to know more about payment methods, ask The General! We are here to help! Looking for an affordable plan? You can get a car insurance quote in less than two minutes. If you like these tips, read more about buying a car on our blog.