Now that we’ve gone from holiday season to tax season, it’s time for millions of Americans to go … shopping for a new vehicle with the money they receive in their tax refunds. Will you be one of those shoppers in 2015?
Tax refunds for 100 million Americans averaged nearly $2,700 last tax season, and early filers received more than $3,300, based on 2014 data from the IRS. That’s 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.
In fact, more than 20 percent of those who expect to spend their refunds on something vehicle related – more than one-third of all refund recipients – will use the money toward purchase of a new or used car. That comes to about 10 million vehicles, based on the survey data.
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.