After working hard week after week, it can be devastating to glance at that part of your paycheck directly allocated to state and federal taxes. However, when tax season rolls around, your return is a nice reward. If you’re in the market for a new vehicle, consider using this lump sum to buy a used car. Here are a few reasons why it’s a worthwhile investment. 

3 Reasons to Buy a Used Car With Your Tax Return

1. Lower Your Monthly Payments

Even if your tax return isn’t large enough to buy the car in full, you can still use it to make solid headway on the purchase. Financing plans require a hefty down payment on the vehicle — usually 20% of the full price — and then monthly payments until you pay it off. By using your tax return, you can offer a much larger down payment, cutting down on the monthly fees to follow.

2. Make a Smart Investment

If your tax return is substantial, you might entertain the idea of treating yourself to a brand-new vehicle. However, new cars lose up to 20% of their total value as soon as you drive them off the lot. Used cars that are more than one year old are better bargains. Although they’ll still depreciate over time, you’ll lose less money, less quickly and avoid that initial big hit the first owner took.

 3. Build Your Credit

One of the harshest criteria in the car buying process is your credit review. Unless you have all the money upfront, it can difficult to land a feasible monthly payment plan with a poor credit score. Luckily, even if your credit is poor, your tax return will allow you the loophole of a larger down payment. Then, you can use the monthly used car bills to build your credit over time, so your next purchase won’t require as large of a down payment.

If you’re in the market for a new ride and you recently received your tax return, now is the perfect time to start shopping. For quality used cars, head to Madd Monkey Garage in Troutman, NC. They’re proud to offer a wide selection of pre-owned vehicles, whether you’re interested in a family-sized SUV or a compact car. They also offer auto repair and maintenance services. To learn more about these and other offerings, visit the website. To make an appointment at the used car dealership, call (704) 663-0333 today.