Six steps to buying your next car with a tax refund

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 during before the tax-filing deadline of April 18, 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 about 100 million taxpayers in 2015 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.

RELATED: Now is a good time to figure out how to use a tax refund on a vehicle

“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

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 six steps in the process that will enable you to drive away with a new car, starting, of course, with getting your check from Uncle Sam – or at least knowing that the check will be in the mail.

Happy tax refund season.

011516 SC Six steps to buying your next car with a tax refund