Why Tax Season Is The Best Time To Buy a Used Car

Use Your Tax Return to Achieve Your Used Car Goal

Each year, tax season comes around, and most people get a tax return for any amount they overpaid throughout the year. This can feel like a bonanza and it is easy to spend your money quickly. Before you know it, your tax return is gone.

What should you spend your tax return on? This year, use your tax return for something useful and buy a used vehicle. Here are some tips for setting up your next season for success by buying your next used vehicle at a Buy Here Pay Here dealership in Topeka.

Take Stock of Your Finances

The best way to make good choices when your tax return comes is to have a plan in place before it arrives. Set your sights on the used vehicle you’re looking for and take into account all of the expenses that will be required. Consider the used car financing costs including the interest on your repayments. There are also expenses such as seat covers, car accessories, window tinting, and insurance when you buy a used car.

The best way to be sure that you don’t overspend before you buy your used vehicle is to write a list of everything you will buy. Find out how much each item will cost including your new car and tally up the total. This way you can stay within the allotted amount and you will have enough left over from your tax return to afford your used vehicle.

Set Your New Vehicle Goal

Once you have an idea of how much you can spend on your next vehicle, start hunting for the vehicles within that price range. For example, if you have $5,000 to spend, you can afford to look at virtually any vehicle made between 2000 and 2010. It is also a good idea to decide now whether you want to pay cash, use credit, or finance in-house at the used car dealership. Buy Here Pay Here financing at a Topeka on-the-lot used car dealership is a good choice, as you’ll be able to get a good vehicle regardless of your previous credit history.

If you want to buy a car that is above your price range, you can take your tax return and use it for a down payment on a more expensive vehicle. With $5,000 down, you can afford a car that costs closer to $20,000.

Limit Holiday Spending

There is only a matter of weeks between Christmas and tax season so it’s vital not to overburden yourself and get into debt during the holidays. Stick to your list for how much you can spend on items like gifts, insurance, and other expenses. It is best not to spend money before you get it and that can be a downfall of credit cards.

When planning to buy your next used vehicle, keep in mind how great having that car will be when you are tempted to spend your tax return ahead of time. Anytime you go shopping during the holidays, try to forget that your tax return is coming and only spend within your means.

Organize Your Finances with an App

A great way to stay financially organized when preparing for your used vehicle purchase during tax season is to use a financial planning app. There is a host of apps that can help you create a budget, or you can use a financial planner to organize your expenses.

Apps such as Mint, Cash App, Personal Capital, Goodbudget, and Quicken can be invaluable in sticking to your budget. Create a list of expenses and allot how much you will spend for each.

Tax Breaks

When buying your next vehicle, be sure to explore any available tax breaks available for those buying a used vehicle. The IRS will let those looking to buy a car deduct sales tax paid on a car purchase, but it must be itemized on Schedule A Form 1040.

Those looking to buy an electric or hybrid vehicle may get additional tax incentives for purchasing an environmentally friendly vehicle.

If you use your vehicle for business, you can get a tax deduction for things such as gas and buying an electric vehicle.

There are also frequently end of the year deals available just for tax season that are worth taking advantage of.

What Kind of Car to Buy?

Perhaps the hardest part of buying your next vehicle is the initial choice of which kind of car to buy. Whether you are planning to use it for travel, daily driving, or business purposes, it is important to invest some time into researching the big purchase.

For example, if you have a large family, it can be ideal to purchase a vehicle with a larger seating capacity such as a minivan or SUV. These can also be great choices for those who live in places that experience harsh winters.

If you live in a warmer climate or don’t have children, perhaps a sedan or even a coupe is best for your situation.

Research Is Key

Be prepared when you walk into the dealership and know what you are looking for to avoid making a snap decision you may later regret. During the purchase process, ask for important details such as how many miles are on the vehicle, what the Carfax report looks like, and how much it Blue Books for. These are all important parts of buying your next used vehicle and the more research you do in advance, the better your decision will be.

Give yourself enough time to research your next vehicle and avoid buying your next used vehicle in a split-second decision. The staff at the Topeka used car dealership will be happy to let you inspect your future vehicle and take it for a test drive, so be sure to take advantage of all of the help available to you when buying your used car.