It’s a fact of life.
Many Americans will spend their tax refund on a new or used car.
And much of that spending will occur before the tax-filing deadline of Tuesday, April 17, with March typically one of the biggest sales months of the year for the auto industry.
For those inclined to spend, the average refund to more than 100 million taxpayers in 2017 was enough to cover about half the 20 percent down payment recommended by financial experts on a $25,000-$30,000 new or used vehicle or make a significant dent in a year’s worth of 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 at About.com.
That being said, you still probably have questions on how to use your tax refund to buy a vehicle.
The colorful infographic below should help clarify, asking the question, “What if you applied part or all of that refund toward the purchase of a new vehicle?” And then describing the seven steps in the process.
Happy tax refund season.