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The Best Way to Use Your IRS Tax Refund - Family Auto of Whitehorse
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The Best Way to Use Your IRS Tax Refund

In 2019, the Internal Revenue Service handed out an average of $3,000 per taxpayer in tax refunds. So, if you have planned your W-4 right and claimed all your credits and deductions, you might be eligible for a tax refund that will be on its way to your bank or mailbox soon. The amount has accumulated over a full tax year and you know that the sum will be substantial. What do you do with it? Place it into your checking account and use the money for daily expenses? Or, invest it somewhere fruitful and reap regular benefits?

Invest your tax refund and reap benefits

You know it in your heart that this is the right option. And currently, the best investment plan you can place your tax refund into is buying a used car. Although experts will throw up their hands and claim that a used car is a depreciating asset whose monetary value only decreases with time, the other returns that you get in kind and/or opportunity makes a quality used car the most valuable asset that you can buy with your tax refund.

Why buy a used car with the tax refund?

One, if you did not have a personal car throughout 2020, the pandemic must have shown you the importance of having your own mode of transportation. Ask around and you will hear stories of people without cars having difficulty in fetching their groceries, procuring emergency medicines, checking in on dependent relatives, and more. A car is a necessity in America. And what better way to commit than use the tax refund as a down payment – the money you were not using anyways.

Two, the American economy is yet to recover from the pandemic. And Europe is already going into fresh lockdowns because of a mutating strain of the coronavirus. The signals that tough days are not over are all over the place and owning a car can become a life-savior. Think how easy it would become to search for jobs traveling in your car? How much time you can save on commute to increase your productivity and earn extra? A used car can be your friend during the tough times, helping you to quickly get back up on your feet if things do crumble.

Lastly, the used car market is currently booming and reputed dealers are offering similar deals as new cars for a lot less money. For instance, you get an assured 2-year/36,000 miles warranty in Family Auto of White Horse Road. Add to that the huge inventory of the dealership where you can get any model of any make with solid underlying quality. Your tax refund will be enough to act as the required down payment while you can finance the rest with Family Auto with no credit score check auto loans. You can literally buy a car without exhausting any of your savings.

Buy a used car – the only best way

Your tax refund was the money that you were basically saving with the IRS. Until you filed the tax return, you were probably not thinking about the sum as well. This presents you with the perfect opportunity to use the tax refund as a used car’s down payment. Your daily financial situation will not change, you will be spending the refund on something useful. The vehicle will continue to fetch refunds and there is always the angle of resale.


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