Use Your Tax Refund to Cover the Down Payment on a Used Car

Your Income Tax Refund — Use It Wisely

It is almost that time of year again — time for Americans to file their income tax returns. Starting in January and ending with the April deadline you will be required to file your income tax form for the year. If you are like the typical tax filer, you will file early to get that refund that you have coming. For most in Olathe, that refund is about $2,800, and for many people looking to trade-in their vehicle, a wise use is to make a down payment on an automobile.

How to Buy?

Most advisers will tell you not to use more than 90% of your refund for the down payment, which puts the average amount you can use for your car purchase at about $2,500. We advise keeping some of the refund aside for other charges related to the auto purchase.

One of the best ways to make that auto purchase is to buy a used car that will keep your payments down to a reasonable amount. One of the easiest ways to purchase that vehicle is to use it at dealers like Auto Now known as a Buy Here Pay Here dealership. This is especially useful if you have less than perfect credit. We offer loans to people who sometimes have a very hard time getting a car loan.

Where Can I Buy a Used Car with My Tax Refund in Olathe?

In Kansas City is one of the most trusted dealers of this type is Auto Now, with six locations in the area around Kansas and Missouri. Auto Now was founded in 1996 with our stated mission to provide people with “quality reliable transportation to our valued customers at a price they love.” With more than 20 years of experience, we have shown steady growth because we have followed through on that mission.

What Is the Buy Here Pay Here Process?

At Auto Now, as with most Buy Here Pay Here dealers, you purchase the vehicle from us and make your payments directly to us. But Auto Now goes the extra distance to make that purchase process easier. With Auto Now, you can apply online with some basic information.

How Do I Qualify for a Buy Here Pay Here Loan?

To qualify you simply need to be 18 years old or older, have a take-home pay of at least $1200, and have a valid driver’s license. There are no traps or tricks; with this information, we will finance your vehicle purchase regardless of your credit rating. Most credit approvals take less than 30 minutes, and when you go in to close the loan usually all that is required is a couple of recent pay stubs, your driver’s license, a utility bill, and a phone bill.

Once you are approved, you have that approval good for 30 days — if it takes you longer to find the vehicle you want simply reapply for a new approval. Once you have been approved and complete your vehicle purchase Auto Now keeps making your life easier by offering an online payment option, unlike some other dealers of the Buy Here Pay Here type where you actually have to make a trip to the dealer to make your required payments.

Which Vehicles Can I Buy in Olathe?

Auto Now in Olathe obtains vehicles from trade-ins at new car dealerships, purchases at auction, and from direct trade-ins. Auto Now has an inventory of about 500 vehicles for you to choose from so you can be sure to find something you like that fully fits your needs. It’s one of the largest selections of vehicles in the state, and you’re sure to find the perfect vehicle for your needs at Auto Now in Olathe or any of our other locations.

Are the Vehicles for Sale Covered by a Warranty?

Every vehicle is inspected by independent auto mechanics. A vehicle that does not pass this inspection will be rejected and returned to the auction seller or the vehicle wholesaler. The vehicle must be in good running condition and pass all safety checks before Auto Now will sell the vehicle to you. Auto Now has a firm belief that if your car is not working properly and you cannot get to work reliably it may become difficult to make your payments — which you don’t want to happen and Auto Now does not want to happen.

Also for your peace of mind, vehicles sold by Auto Now are covered by a two-year/24000-mile powertrain warranty that also covers the vehicles starter, alternator, and air conditioning with a low $200 deductible.

How Much Will Repayments Be?

Most vehicles in the Auto Now inventory are priced in the range from $6,000 to $15,000, and with your down payment, you will easily have payments at less than $80 per week (about $300 per month) that can be automatically debited to your bank account so that you never have to worry about late payments.

You Can Use Your Tax Refund for the Down Payment on a Used Car

These loans are typically short-term loans not the typical car loans that take you up to 72 months to pay back. You can also make additional payments against your car loan to pay it off even quicker, like using next your next year tax refund to pay down the balance even faster, you could have your vehicle paid off and fully owned by you in just a couple of years.

Using that income tax refund to purchase a good reliable vehicle may be the most sensible thing for you. Remember that income tax refund is not found money — it is more like a forced savings account as money in excess of your total taxes due are taken out of your paycheck over the course of the year, so it makes good sense to use that refund for something that is sensible, like purchasing a reliable warranted vehicle from Auto Now in Olathe, than blowing it on some luxury item that you do not really need.