Liberty Cars and Trucks
Liberty Cars and Trucks Smart Search Icon
Search

Use Tax Return To Buy Car

blog-greedy

How Use Tax Refund To Buy Car

If you’re in the market to buy a new car then you should know something about tax season: tax refunds and car loans are a good match.* That’s because refunds, which have averaged around $3,000 in recent years, can provide many approved buyers with a ready-made down payment on their next ride, or at least a useful chunk of it.

In turn, that money down may drop their monthly payment and provide useful savings on interest charges.

Let’s see what kind of difference it makes when you use your tax refund to buy a car. A $3,000 refund, for example, goes a long way toward covering the typical 12 percent down payment on the average price of a new car, which was $37,577 in December 2018, according to Kelley Blue Book. It would also more than cover 12 percent down on a used vehicle, with an average price of $20,085 in the third quarter of 2018, according to Edmunds data.

A down payment on a vehicle, or ready cash for a stretch of car payments, are not the only ways a tax refund might work with auto financing to your benefit. Here are a couple more examples:

A head start on your payments

This is another option for using a tax refund for a car purchase. Instead of allocating the money as a down payment it could be used for making a number of monthly payments on the new auto loan. A refund of $3,000 could be used to make 11 payments of $269; almost a year’s worth on a five-year loan term. Not a bad start.

Pay down principal

If you have an existing car loan, using your tax refund to pay down the principal may save you money on interest over the remainder of the contract. Use an amortization calculator to see how adding to or subtracting from your principal and interest affects the loan and total payments.

Research Vehicles - Preapproved Loan

With an idea of what you can afford and how using a tax refund may lower your costs, you’ll be in good shape to research vehicles and make a great choice at the dealership.

Consider getting preapproved for financing before you go. Preapproval offers the advantage of knowing the terms of your auto loan, including the total loan amount, duration and APR, up front so you can shop with the confidence.

Need help with financing?
Liberty Cars and Trucks can help finance your vehicle >>

Visit us at 3010 E. Bell Rd Phoenix Arizona and have a spin with one of our vehicles. Our staff is accommodating and friendly. They are also well knowledgeable on the cars and trucks in our showroom and our finance options. Come one, come all.

Come take a look at our  inventory at our Phoenix AZ dealership.  We look forward to meeting you!


Use Tax Refund To Buy SUV in Phoenix, AZ

 

Finding an SUV that is pocket-friendly and still has those amazing features that strike you most is not easy. But maybe you have been searching in the wrong places because the models have always been available at Liberty Cars and Trucks in Phoenix AZ.

We have an assortment of pre-owned Dodge, Chevrolet, Ford, JeepGMC, Toyota and the Hummer. Our team of specialists are ready to recommend a ride that suits your driving preferences and best features for your future adventures.

But it’s not just about the car and its features; our staff members are well knowledgeable about the car buying process and finances. They will walk you gradually through the process. So, in case you find a vehicle that is hard to let go, don’t resist, visit us at our home in Phoenix AZ, and we will schedule a driving test right away.

Our reputation is untainted in this business. We also have other range of trucks, pickups and other vehicles available in our full lot. We have been in the industry for an extended period and serving drivers in Tempe, Scottsdale, Peoria Mesa, Gilbert, Glendale and Phoenix.

View Our SUV Inventory >>

 

jeepwranglerunlimited
blog-handshake

Tax Refund Offers in Phoenix

As a buy here pay here dealership in Phoenix, AZ our team at Liberty Cars and Trucks is dedicated to helping our customers get into cars they love and can afford. Each year, tax time can be stressful, but it can also be rewarding as often unexpected income is returned to your pocket. What this means is that buying a used vehicle just became easier. Working with our team, we’re able to offer in-house financing along with many other financing programs and incentives to get you in a vehicle you need today rather than waiting months from now.

If your credit is suffering from financial mistakes made in your past, look no further than our Buy Here Pay Here Financing Department. We work with people like you who have less than perfect credit or no credit at all to ensure that you get a fair deal on a vehicle that you want to drive at rates that are relatively fair. The best way to find out about interest rates and payment is to contact our Finance Department to discuss your options. In fact, you can pick up the phone and Call 602 331-3333 and one of our Service Managers can have you behind the wheel of a vehicle sooner than you think. Our auto and truck Finance Office professionals are friendly and willing to work within your budget to find you a vehicle that best suits your needs.

Contact Information