Tax day has officially come and gone, but if you’re like some other lucky Americans, the best part is yet to come. The day you open your mailbox (or check your bank account) and find that sweet, sweet tax return has arrived.
Now the big question: how to get the most from your tax return? While that beach getaway is practically calling your name… you might want to consider putting your hard-earned cash into something that will save you in the long-run. A vacation may save your sanity (and we’re all about that), but investing in your car or a new ride could save you thousands in the long run.
Here are five ways you can put your tax return toward your car.
Pay off your car. Can you taste it? The end of monthly car payments? If you’re nearing the end of your loan, you might be able to save on interest by paying it off early. Check with your lender to make sure you won’t incur fees for an early pay-off, and enjoy that extra monthly income.
Put a down payment on a new car. The average tax return may not be enough for a down payment all by itself, but when combined with the value from your trade-in, you’ll likely have enough to get into a new car without digging into your savings.
Lease a new car. According to yahoo.com/autos, the average cost to sign a new lease is $2,815. Lucky for you, that’s the same amount as the average tax refund this year.
Refinance your car loan. If your loan has a high interest rate or you’ve improved your credit score since you obtained the loan, shop around for better rates, and refinance. You’ll be surprised at how much you can save in interest over the life of your loan.
Invest in your current car. Save yourself serious cash in the long run by putting some money into your car now. If you plan to keep your vehicle for the next several years, invest in a multi-point inspection, and fix issues before they become major problems. If you’ve been hoping to invest in a better sound system or other aftermarket upgrades, treat yourself.
Here at Phil Wright Toyota, we hope to help you reach your automotive goals. Stop by today to see how we can help you invest in the future.