How to Use Your Tax Refund for a Used BMW

use your tax refund for a new car

Are you in the market for a used BMW 3 series in Houston? If so, you’re in luck. Tax season is the perfect time to find a car loan and get the vehicle you’ve been eyeing. With tax refunds averaging about $3000, this is means that buyers have a nice chunk of change to put down to save money on interest charges and monthly payments. If you’re planning to use your tax refund to purchase a used BMW, keep reading to learn how your tax refund can help you get the most out of your purchase.

Lower Your Monthly Payment

Financing costs are high, and they’re even higher when buying luxury vehicles. You might be planning to trade in your current vehicle to get a lower monthly payment but adding a cash down payment on top only sweetens the deal. When you start looking at used BMW 3 series for sale in Houston, ask the dealer to show you how much your trade-in and your tax refund combined can save you each month.

Get Ahead on Payments

Another way to use your tax refund is to put it towards future payments. If you decide to do this, be careful. Check with your auto lender to decide the best way to do this. For example, if you send in 11 months’ worth of payments at one time to avoid paying a car payment for the whole year, make sure it’s counted as the monthly payment and not as a bulk payment toward the principle. If your lender doesn’t let you pay for several months in advance, then put the money in savings and use it to pay on time each month.

Pay the Taxes and Licensing Fees

The initial purchase price isn’t the only out-of-pocket cost you have when you buy BMW 3 series in Houston. You also have the taxes and licensing fees. Depending on the price of the vehicle, these fees can start to add up. If you have a trade-in to help you with the down payment, consider using your refund to pay these fees.

Pay Down the Principal

If you recently bought a used BMW 3 series in Houston, why not use your refund to pay down the principal. Doing so keeps you from being upside down on your car loan for too long. The sooner you start paying down the principal, the quicker you get the car loan paid off and the less money you spend on interest charges.

Get Preapproved

Once you have your refund check in hand, don’t head to the dealership just yet. Do some research online and get pre-approved for a car loan. Getting pre-approved lets you shop without guessing and being disappointed. You’ll know what you can afford before you walk onto the lot. When you’re pre-approved and have your refund check in hand, you shop with the confidence of a cash buyer. Now that’s a great feeling.
Are you ready to buy your new vehicle with your tax refund? Look for BMW 3 series for sale in Houston at Bemer Motor Cars to find the best selection of used BMWs in all models and trims.
buying a new car in Houston

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