Spring is right around the corner and that means longer days, milder temperatures, blooming flowers, and tax season. And while taxes may not seem very exciting for many of us, the average person receives a refund of around $3,000. That can give you several advantages if you're in the market for a pre-owned vehicle.

What are the Advantages of Buying a Used Car with a Tax Refund?

Using your tax refund when buying a used car can give you more flexibility. By making a bigger down payment, you can either increase your purchase budget or use it to get a lower monthly payment. A down payment will increase your odds of approval for financing if you have a limited credit history. Additionally, if you find yourself in a situation where you owe more on your current vehicle than its value, using your tax refund as a down payment can help offset that difference, which will also help with securing financing. Shoppers may want to consider the peace of mind that comes with a vehicle protection plan, such as an extended warranty or gap protection, and a down payment could be helpful in covering those add-ons.

Buying a used car rather than new is a smart choice. New cars depreciate the minute they're driven off the dealer lot. When buying used and letting someone else take that initial depreciation hit, you can save thousands of dollars on both the sticker price and any applicable sales tax on a recent model year vehicle with updated styling and features.

Including a down payment on your vehicle can open the door to several more options and increases affordability in your monthly budget. At Hertz Car Sales, we have options for any budget, and can help you find the options that may be best for you. If you have any questions, speak with one of our team members at the Hertz Car Sales location nearest you.

Categories: Finance