Five Ways To Use Your Tax Refund On A Vehicle

It's the most wonderful time of the year! Tax return season! According to the IRS, most people receive an average of $3,000 back as their federal tax return and a third of Americans put that money towards a new, used, or current vehicle. If you've been considering using your tax return to either purchase a new or pre-owned vehicle, like the many SUVs, cars, trucks, and vans we currently have in stock at Jenkins Hyundai of Ocala, or use it towards fixing the one you already have, here are five ways to wisely put that money to use.

  1. As A Down Payment

    Whether you're looking to purchase a new or used vehicle, the more money you have to put towards a down payment, the better, especially if you have no or low credit. You will not only have a better chance of getting a loan, because the lender will see that you are a serious buyer and not someone who will stop paying their bill, but the monthly payments will be significantly lower.

  2. As A Drive-Off Payment

    Most leases require a small down payment, if they ask for one at all, but, if you agree to put down more money towards the drive-off payment, you will end up with having lower monthly lease payments and a better chance of renewing your lease when it's time.

  3. To Pay Down Your Current Loan

    If you already have a car loan and you aren't looking to purchase a second new or used vehicle, then you could consider lowering your over-all debt and pay down your current loan. You can do this one of two ways, by making extra payments or by lowering the balance directly. If you aren't sure which one of these options you should choose, you should discuss it with your lender to get a better idea of what would be more beneficial. Making extra payments will help to pay your loan of quicker while paying down your balance will help to lower the interest you'd pay over time. Both are viable options that will save you more money in the long run.

  4. To Help Refinance Your Current Loan

    When you applied for your current loan did you have poor credit and get stuck with a high interest rate? If you're credit has improved since then and you'd like to lower your interest rates and, in turn, end up paying less for your vehicle in the long run, then you should consider using some of your tax refund money to refinance your current loan. As the money goes towards your principal, your interest rates will go down, and you'll find a much nicer car loan in your future.

  5. To Better Your Current Vehicle

    Maintenance is an important part of owning a vehicle. We're sure that you have kept up with the most important services, like oil changes, tire rotations, and brake replacements, but, if it's been a while since you've bought your car, why not spend some of your tax refund and fix it up or upgrade it? You could purchase brand-new tires to help with traction, have the inside and outside waxed, cleaned, and detailed, add on that roof rack that you've always been wanting, or fix any unnecessary, but nice-to-have features that are currently out of commission.

Browse Through Our New And Used Vehicles To See Which Model You'd Like To Put Your Tax Refund Towards

Here at Jenkins Hyundai of Ocala, located in Ocala, FL, and just outside of The Villages, Lady Lake, Dunnellon, and Gainesville, we have many different sedans, hatchbacks, SUVs, crossovers, coupes, trucks, and vans in both our new and used inventories. If you'd like to take a closer look at any of these models, don't hesitate to stop by our Jenkins Hyundai dealership and allow us to offer you a test drive today.