By Buddy Blouin

You work hard for your money. Sure, serving the United States and defending freedom across the globe has intangible rewards, but your paycheck is important. Tax season is an anticipated time for many Americans looking to catch a break and recoup more of their hard-earned money through a refund. One popular way to spend said refund? With a new vehicle of course! To get a car with a tax refund is almost a right of passage as a worker and for the military, purchases can be made even sooner as refunds are typically available sooner than civilian filers. If you’re looking to use your tax refund to buy a car, we’re here to help you get the most out of your money.

Suggested read: Ship Your Car - The Ultimate Guide For PCSing With a Vehicle

How to Use Your Tax Refund for a Car Purchase

Nearly 92% of American households own a vehicle, as car ownership is a common experience in the United States. So too is purchasing a vehicle with tax refunds. If you’re looking to get a car with your tax refund, here are a few steps to help you secure your new ride:

Review Your Finances

Before executing your tax refund car purchase, it’s important to create a game plan. You’ll want to review your finances to not only make sure the purchase is viable but also to help you set boundaries and understand how you’ll pay for the vehicle in the future.

Car ownership doesn’t just require an upfront cost. You’re going to have to pay for the note, insurance, gas, tolls, general maintenance, taxes, and more. Be sure to not only plan your budget for the initial purchase but for everything else that comes along with it.

When renewing your finances, be sure to look over your monthly income, existing debts, and emergency saving funds. Doing so will help you better understand how a vehicle purchase will affect your finances long after you’ve spent your tax refund.

Get a Car With Tax Refund But Know Your Limits

Reviewing your finances is one thing but if you don’t stick to the financial plan you create, it’s all for nothing. Part of assessing your finances means setting purchasing limits for your new vehicle. Once again, you’ll want to think long-term here.

If you get a car with your tax refund that comes with a note that isn’t feasible long-term or is on the higher end of the market for auto insurance but you aren’t prepared, you could be setting yourself up for trouble down the line.

Impulse decisions rarely provide long-lasting satisfaction. Setting financial boundaries ensures a positive purchasing experience both when the thrill of having a new car is still in effect and long after it has faded away.

Negotiate Favorable Financing

How you finance your purchase is going to affect the vehicle you buy and your financial situation for the foreseeable future. You’ll want to explore financing options that maximize the impact of your tax refund. By researching lenders and interest rates, you can find the best option to suit your needs.

Related read: How To Responsibly Purchase a Vehicle With Your Signing Bonus

Get a Car With a Tax Refund From a Dealership You Trust

If you’re serving at Joint Base McGuire-Dix-Lakehurst and are in the market for a new vehicle, where you buy your car matters. That’s why it’s imperative to have a team committed to helping you find the right vehicle at the right price. When searching for the right car to purchase with your tax refund, be sure to visit a dealership you trust to have your back long after you pull off the lot. Happy car hunting!

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