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Consider Using Your Tax Refund to Invest in Your Car

February 26, 2020 12:07 am Published by Leave your thoughts

We’re in the middle of tax season, and over the next couple months, a lot of people will be getting a good chunk of change back from Uncle Sam. What you do with your tax refund is absolutely your prerogative—some people will put it toward a trip, while other people will simply stash it away into savings. But if you’ve been putting off some repairs or maintenance for your vehicle because of the expense and don’t have any other grand plans for your tax refund, you might consider using that refund to invest in your vehicle.

Here are a few examples of some car repairs to do in Madison, TN once you get your tax refund back from the federal government:

  • Get some new tires: New tires is perhaps the upgrade to a vehicle that people put off the longest. They might not even realize they need new tires due to a lack of checking the treads on a regular basis. For other people, the expense associated with replacing the tires is a deterrent that will make people want to put it off for as long as possible. Your refund will likely cover the cost of tire replacement, so now’s as good a time as any to make the upgrade if needed.
  • Perform some maintenance: Are there other types of maintenance you’ve been putting off with your vehicle? Focus on some safety features such as brakes; you can easily replace the brake pads (and rotors, if needed) with the tax return money you’re likely to get. If there are any other parts of your vehicle that need to be replaced, this is a good time to consider getting the work done. If, for example, you’ve had a check engine light flashing on your dashboard, you might need to replace an oxygen sensor. This will likely cost you a couple hundred dollars, but it will drastically improve your gas mileage.
  • Consider getting a new car: If you’ve been planning on purchasing a new car anyway, you could use your refund and put it toward a down payment. If you get a $2,000 refund, that right there is 10 percent on a $20,000 brand-new vehicle, which is twice the average five percent down payment people make on their vehicles. You can supplement this money with money from your savings as well to lower your monthly car payments and the amount of interest you’d have to pay.
  • Lease a vehicle: If purchasing a car isn’t your style, but you want to get a new ride in a different way, you can save quite a bit of money on a good lease deal. Placing all your tax refund money down at signing is a great way to get ahead of lease expenses and save some cash in the long run.

For more information about what should be repaired on your vehicle when you get your tax refund, we encourage you to contact a mechanic in Madison, TN at Rivergate Muffler & Auto Repair.

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