What Should I Do With My Tax Refund
This is geared towards the consumer that has less than perfect credit, bad credit, no credit, previous repossessions, previous bankruptcies, and a current vehicle that is not in the best running condition.
You may be looking to solve your problems with your tax refund this year. Many are. We will highlight the options that you are, most likely, considering as well as the pros and cons.
Choice #1: Buy a Cash Car
I have been in the business awhile and see the same customers come in at tax time yearly. Looking for a $1500 car. Every year it is the same issue that the vehicle they bought from someone last year is no longer running. They are in a revolving cycle of always having to buy a car with their tax money every year.
Pros: No car payment.
Cons: Never establish or re-establish your credit. Temporarily fixing your vehicle needs. No piece of mind for vehicle reliability. May use up all of your tax money.
Choice #2: Repair your Vehicle
You could use your taxes to repair your current vehicle to extend its life. You would have to look at the vehicle you currently have and compare to vehicles that you could possibly buy to determine which is the better deal
Pros: No car payment. You know everything that is wrong with your car.
Cons: Never establish or re-establish your credit. This might just be the start of the problems with the vehicle. Most likely need to use tax money to repair again next year. May use up all of your tax money.
Choice #3: Finance a New Car
You could use your taxes as a down payment on a new car.
Pros: Get a newer, lower mileage, reliable vehicle with a warranty. Use next years tax refund for fun stuff like iPads, 3D TV’s, and rims for your new ride. May even have enough left over after down payment to get fun stuff this year. Piece of mind. Jealousy of friends.
Cons: Will have a car payment