Tax season is upon us and refunds are expected to hit the bank accounts of thousands of Americans as soon as mid-February! Using your tax refund to buy a car can be a smart financial move and our team at FAS is here to help guide you through the process:
First things first, it is important to establish a baseline on how much you are looking to spend. Evaluate your financial situation and determine how much you can afford to spend on a car. Consider not only the listed online price but also additional costs such as taxes when looking to purchase a car. Further, insurance, registration, and potential maintenance costs are also important factors to consider down the road.
We all want a Porsche 992 GT3, but that doesn't mean we all can afford one. Be realistic about the type of car you can purchase with your tax refund. Setting clear goals will help you narrow down your options and avoid overspending. Do you need a reliable daily driver to get to work every day? Or are you in the market for a fun weekend car? Make sure you clearly identify your needs before jumping to conclusions. Research the type of car that suits your needs and budget. Consider factors such as fuel efficiency, maintenance costs, and insurance rates. Use online resources, reviews, and pricing guides to make informed decisions. There are always pros and cons to most vehicles. Pre-owned economy cars such as a Honda, Hyundai and Toyota make for perfect commuters that are affordable to purchase and maintain. While brand new BMW and Mercedes SUVs might offer a lot more performance and luxury, they tend to be at a higher price point in both, initial price and maintenance cost. The car market in 2024 is huge and offers something for every taste, need and budget. For example, our inventory here at Future Auto Sales can help you get an idea of which car might meet your needs the best.
Look for deals and discounts on cars. Dealerships often have promotions, and private sellers may be willing to negotiate. Compare prices across different sellers to ensure you're getting a fair deal. At this stage, it's important to really do your research. Every car is different and especially used cars each have their own story. CarFax and AutoCheck reports can go a long way to find out about a car's prior ownership history. Our team here at FAS recommends being extra careful with listings that have severe accidents, mileage inconsistency, or lack of service history. Even if such cars seem like a good deal at first glance, they might give your problems down the road and might be harder to resell in the future.
So you have found a car you like, now are you planning to pay cash or finance it? If you decided on the later, it is a great idea to check your credit score to help you secure better financing terms. Before shopping for a car, check your credit score to see if it needs improvement. Consider taking steps to boost it or determine whether you'll pay for the car outright with your tax refund. If you need additional financing, explore options such as auto loans from banks, credit unions, or dealership financing. Compare interest rates and terms to find the best deal. In the 2024 car market, banks and interest rates have increased, meaning it might be harder to get approved, even with good credit. If you have weaker, lower credit or it is your first time financing a car, your tax refund can go a long way as a strong down payment. Our team at FAS has helped hundreds of individuals improve their credit score by getting them into a car. Even with no driver's license or social security number, our flexible financing options can get you approved on a car. It all depends on the right down payment which refers to putting a percentage of the car's value down upfront, decreasing the overall loan amount from the bank to increase your chances of getting financed under the most favorable conditions. With your tax refund, and maybe some extra cash that you have saved up on the side, you can provide just that to get approved at the rates and payments you are looking for to own your next car. Sounds confusing? Don't worry, our specialists at FAS offer free, completely transparent consultations to find ways to work with your credit situation.
If you're financing the purchase, consider getting pre-approved for a loan. Pre-approvals can streamline the buying process and give you a better understanding of your budget. All that can be done with a bank or credit union of your choice, or right at the dealership with an experienced sales consultant. It is worth noting that you should avoid too many hard inquires during this step as it might affect your overall credit score.
Before finalizing a purchase, inspect the car thoroughly and take it for a test drive. Look for signs of damage or mechanical issues. If you're not familiar with cars, consider bringing a second set of eyes or paying for a pre-purchase inspection at a reputable shop.
Once you've agreed on a price, complete the necessary paperwork. Ensure that all legal and financial aspects of the transaction are handled appropriately. Our team at Future Auto Sales finishes all the financing and DMV paperwork right on the spot with you for a comfortable and easy purchasing experience.
Buying a car and driving it off the dealership lot is one thing, but owning it and taking care of it is another story. Knock on wood your next car purchase won’t leave you stranded on the side of the road, but even routine repairs can get costly. For that reason, it makes sense use your tax refund to purchase an extended warranty. Future Auto Sales is proud to offer Cornerstone and Alpha warranties that cover anything from just basic drivetrain components to everything electrical on all our inventory. Your 2024 tax return can provide peace of mind when invested into an extended warranty with your next car purchase. Who knows what can happen 12 months down the road. Let our specialists assist you for warranty questions on our inventory!
We all get excited when seeing the extra cash from a tax refund in our bank account. But always remember to consider the long-term costs of car ownership, including insurance, maintenance, and fuel. Additionally, keep in mind that responsible financial planning involves maintaining an emergency fund and not depleting all your available funds on a single purchase.
Here at FAS we do car sales the right way. We pride ourselves on being able to get our customers into the car that they want, and more importantly, at the price they want! Whether you're looking for a new, used, or leased vehicle we've got you covered. With over 25 years of experience in the greater Los Angeles area we maintain outstanding customer service with over 800 top-rated reviews from customers nationwide. Our experienced specialists will help you put your tax refund towards your next car purchase effectively with our fully transparent and smooth buying process. Get in touch with us today by giving us a call at 818-240-0099 or visit us in person at 1711 S Brand Blvd in Glendale. We are looking forward to see you!