Going car shopping with your tax refund

Many Americans will go car shopping this year with the money they receive in their tax refunds from Uncle Sam.

Will you be one of those shoppers in 2014?

Tax refunds for 100 million Americans averaged more than $2,650 last tax season, and as much as $3,000 in previous years. That’s  enough to cover the typical 11 percent down payment on a new car or make a significant dent in a year’s worth of monthly car payments.

“Based on the info in [an] eBay Motors survey, Americans appear to view tax refunds as opportunities to make purchases of vehicles associated with the joys of driving,” wrote Keith Griffin in the report “Use Your Tax Refund to Buy a Used Car” at About.com. In fact, more than one in five of those who expect to spend their tax refunds on something vehicle related will use the money to purchase a new or used car.

That being said, you still probably have questions on how to use your tax refund to buy a vehicle. That’s where we hope to help with the following infographic.

tax refund
Graphic by Kelly Brown

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