{"id":35373,"date":"2021-02-05T11:58:43","date_gmt":"2021-02-05T17:58:43","guid":{"rendered":"https:\/\/santanderconsumerusa.com\/?p=35373"},"modified":"2021-09-27T13:57:20","modified_gmt":"2021-09-27T18:57:20","slug":"why-not-make-a-car-purchase-with-your-tax-refund","status":"publish","type":"post","link":"https:\/\/santanderconsumerusa.com\/blog\/why-not-make-a-car-purchase-with-your-tax-refund","title":{"rendered":"Why not make a car purchase with your tax refund?"},"content":{"rendered":"

\"Tax<\/p>\n

Tax refunds will begin arriving soon.<\/p>\n

And that means many Americans may be looking for a new or used vehicle on which to spend the money they get back from Uncle Sam.<\/p>\n

Of course, you should not spend refund money on a vehicle if you have other financial needs or your budget can\u2019t absorb the monthly payments. But with the average refund of about $2,700 \u2013 more than $3,000 among the earliest filers \u2013 making a car purchase with your tax refund might be tempting.<\/p>\n

For those inclined to spend, the average refund could be enough to cover about half the 20 percent down payment financial experts recommend on a $27,000-$30,000 new or used vehicle.<\/p>\n

\n
\"Chrysler<\/a>

<\/div>\n<\/div>\n

And a recent report by Edmunds.com car research and shopping website shows that the average $2,700 refund would cover about two-thirds of the average down payment for a new vehicle, around $4,000, and most of the average down payment for a used vehicle, about $3,000.<\/p>\n

If you do plan to spend your tax refund on a vehicle, we have a half-dozen suggestions on how the extra money may help you make the purchase or payments:<\/p>\n