Using your tax return for car expenses can be a smart financial decision.
5 Ways to Spend Your Tax Return On Your Car
Tax season can be a frustrating time for many Americans, but the good news for many of us is that we will have a decent sized tax return at the end of it. So, what do you do with all of this extra cash? You could invest it in stocks, splurge it on a vacation or buy a gift for a special someone. Well, we’re here to suggest a different way to use your refund. Here are 5 ways to spend your tax return on your car.
There may have been a time when owning a car was seen as a luxury, but these days, nearly everyone relies on their vehicle to handle errands, transport kids or commute to work. Our cars have now become a necessity, and they are a necessity that can sometimes require a significant amount of cash. Therefore, putting this extra money toward your vehicle can be a wise decision.
Using Your Tax Refund On a New or Currently Owned Vehicle
- Save it for a down payment: Whether you’re planning to purchase or lease a new or used vehicle, saving your tax return to use later on a down payment can be a smart idea. Generally speaking, the higher the down payment amount, the lower the monthly payments will be.
Save it for a rainy day: Every vehicle, no matter how top quality or new it might be, is going to run into some sort of maintenance need along the way. To protect yourself (and your wallet), you can stash away your tax return for a rainy day when your vehicle may need expensive repairs. You could also purchase a pre-paid maintenance plan on your vehicle. [Read more: Benefits of Mazda’s Extended Confidence Plan]- Splurge on a used, affordable sports car: Hey, we aren’t against you treating yourself to something fun. In fact, one great way to use your tax return is by finding a used sports car at an affordable price, depending on how much your tax return is worth. A used Mazda Miata is our recommendation.
- Splurge on some car accessories: Again, there’s nothing wrong with splurging, and car accessories is one great way to customize or personalize your ride. Help make your vehicle yours or better suited to your driving needs with some OEM accessories.
- Buy new tires: Though new tires could certainly fit in with the rest of the maintenance needs mentioned above, we feel it deserves its own listing. The fact is, many drivers put off purchasing new tires due to their high cost. This is unsafe, and we urge drivers to purchase new tires when needed. If you’ve been putting it off, tax refund time may be a good time to get this taken care of. [Read more: How to know when to get new tires]
Of course, there are many more than just these 5 ways to spend your tax return on your car, so share your own ideas in the comments section. You can also feel free to share any other creative ways to use tax return money this year.