It is about to be that time of year again: income-tax season. For many Americans, this means possibly receiving a tax return in the form of a check or a bank deposit. Since this allows folks to get their hands on a decent amount of money at one time, many like to use this opportunity to purchase a new or used vehicle. While there are many options available to purchase a used car with an income tax return, this guide can help you get started with making your purchase decision.
Purchase a Vehicle From an Individual Seller
The most commonly used method is to just take the cash from your tax return and purchase a vehicle from an individual off of Craigslist Autos. This is the easiest solution if you do not want to engage with pushy salespeople or if you just want to buy a car with cash and not have to take out any loans or utilize automotive financing.
Using Your 2015 Income Tax Return as a Down Payment
Another popular option is to either bring your tax return check or your W-2 to a car dealer and use it as a down payment for a vehicle. This option involves the most amount of time and energy, but may result in the highest quality car or truck – assuming you are always able to make the monthly car payment. If you choose to go this route, you should be prepared to visit a few local used car dealers in order to have plenty of cars and trucks to choose from before making a purchase decision. As much as a used car dealer would like for you to, it is a good practice to try and visit at least a few dealer locations before making any commitments.
Use Your Tax Return to Buy a Vehicle at a Public Auto Auction
While not the most common choice, the best way to save the most money with your 2015 tax return on a used car would be to buy a car at a local public auto auction. Instead of having to visit multiple dealerships or meet up with random strangers from Craigslist Autos, a car auction will have a large inventory (between 100s to 1000s, depending on the auto auction) at one single location. Often, cars sold at public auctions are much cheaper than retail car lots and are usually also cheaper than buying from local individuals on Craigslist.