Spring is almost here, which means people are gearing up to receive their tax refunds. This is a great opportunity to purchase a more reliable vehicle while also making sure your auto insurance is as good as it can be to cover your new investment. Here’s a closer look at how to use your refund wisely on a vehicle upgrade. 

Options for Using Your Refund on a Car Purchase

If you currently have a car loan you’re paying off, use the tax refund to pay down the existing balance. Once you own that vehicle outright, you can consider selling it on your own or trading it in at a dealership. 

If you don’t have a current car loan, there are a few ways you can use your refund on a new vehicle. 

• Buy Used – Depending on the age and condition, used vehicles can be just as reliable as new ones for a fraction of the price. Be sure you do your research and have the vehicle checked out by a mechanic before buying. 
• Lease a Vehicle – If you want a new vehicle but would prefer not to buy one outright with your refund, consider leasing. This entails making monthly payments for a specified term. At the end of the term, you can pay the remaining cost to purchase the vehicle or choose a newer model to lease. 
• Make a Down Payment – If you plan on financing a new vehicle, a large down payment is a must. Substantial down payments decrease your interest while also lowering the monthly payments. 

Shopping for New Insurance

If you already have a vehicle, you most likely have auto insurance. That doesn’t mean you have to stick with the policy you have, especially if it doesn’t meet your needs. After all, a new car may need extra protection, particularly when financing is involved.

Before investing in a new vehicle, shop around for an improved car insurance policy that will give you peace of mind. You can use part of your refund on new insurance while also expanding your coverage. For instance, it’s recommended that drivers carry more than liability coverage, such as comprehensive and collision insurance. Most car loan lenders will require what’s often called “full coverage” until the vehicle is paid off.

Are you in the market for new auto insurance in Foley, AL? Southern Insurance AL, LLC offers dependable policies at affordable prices to local drivers. Because they’re family-owned, they have a real investment in providing quality customer service to clients. They’re also an independent agency, which means they’ll shop around to different carriers to find the best policy for your needs. They even help high-risk drivers find suitable insurance products to get back on the road. Schedule a consultation today by calling (251) 943-3340 or visit the website to learn more about auto coverage.