I’m going to buy a car with the tax refund
“I’m going to buy a car with the tax refund,” is the most recurrent phrase this season. The U.S. taxpayer received $ 2,577 in 2020 as their average tax refund, according to the IRS. Long-awaited money, which many people use as a down payment on the purchase of a new car.
That strategy is not wrong since, if you had some savings, combining them with the repayment gives you greater ability to negotiate with your lender for a lower monthly payment and a lower interest rate.
It may also be that, with the saved fund added to the tax refund, it allows you to buy the car for cash. Especially if it is a second-hand one. Unless you are obsessed with brand new cars, buying a second-hand vehicle has a great price advantage. You can get a practically new car, with two or three years of use, at 50% of the launch price.
You’re not the only one who takes your tax refund into account when visiting car dealerships. The car sellers themselves this season launch super aggressive offers to attract the largest number of buyers. They know that people get good money and go hunting.
Therefore, even if you want to buy a car and have the money, the smartest thing to do is to prepare a budget that not only allows you to pay a good entry but also that the monthly payments are adjusted to your income. In such a budget, the cost of fuel, periodic maintenance, and, above all, vehicle insurance should not be overlooked.
If you have doubts about how much insurance could be for the vehicle you want to buy, call Univista Insurance, and not only will you get the right answer, but you will leave with the best coverage on the market.
Something very important, do not go to the dealer until you have the check-in in your hands. Many people have been anticipating and the check has taken them longer than usual and they have suffered a real nightmare. I’m going to buy a car with the tax refund.