Tax season is upon us. For some taxpayers it can be a stressful time. But, for many of us it means we will have some extra money in our pocket. You may have already considered what you are going to do with your tax refund this year. And if you are thinking of making a car purchase, you are not alone. One third of all Americans spend their tax refund on some type of auto purchase. But what is the best way to spend this money? Buying a used car with a tax refund is a smart choice. Having some extra money back from Uncle Sam it can be tempting to splurge on a brand new car. However, keep in mind that a tax refund is not free money. It is your own money that you worked hard for being returned to you. So, it is important to spend it wisely. Using a tax refund to buy a used car is a good investment in the long run. Here is why:
An Investment in Value
A pre-owned car is going to be less expensive than a new car. The reason you can get a like-new used car at a great price is because new cars lose their value instantly. The moment you drive a new car off of the lot it loses about 10% of its value. Basically that tax refund money you used as a down payment just went POOF! With a used car there is no immediate dip in the value of the car. Used cars depreciate at a slower rate. So, buying a used car with a tax refund is smart because the value of a used car holds up better than a new car.
Get More Bang for Your Buck
A good point for buying a used car with a tax refund is that many used cars offer the same benefits as a new car, but at bargain used car prices. You can get a pre-owned car in excellent condition that might as well be new. You can also get more features for less money. You will pay far less for the extra features than the original owner did. So if you want a car with a sunroof or navigation system, buying a used car with your tax refund with help you get more for your money. Just make sure you buy from a trusted used car dealer, like Prado Auto Sales, to ensure you are getting a quality used car at a great price.
Using a tax refund to buy a used car is going to help reduce the loan amount. This will make the monthly payment smaller. Who doesn’t want a lower car payment? Plus, for those that have less than perfect credit, using a tax refund as a down payment can help secure an auto loan. Since the down payment will cause the monthly payment better fit your budget, it will be easier to get approved for a car loan.
As you can see, using a tax refund to buy a used car is the best way to make most of your money. A used car is a great investment. But getting the right used car is the important part. So if you are interested in buying a used car with a tax refund in Miami, come to Prado Auto Sales. We have quality used cars and the best tax refund car deals in Miami for you. To start shopping the best used cars in Miami now, visit our inventory page.
Prado Auto Sales is dedicated to customer satisfaction in hopes that you always remain a part of the Prado Family. We have provided you with a Google map, address and phone number to help you find us easily.