What makes tax time so adventitious?
It is a well known fact that tax time is on of the best times to purchase a vehicle. In this article we elaborate on this point from the customer and dealerships perspective.
Is Tax Season Is the Best Time to Buy a Car?
The burden of taxes is one of the most frustrating parts of being an adult. Tax returns take hours to complete and gathering all of the documents that go along with them can be stressful. Furthermore, there is the stress of not knowing if you will owe money or not. Nevertheless, most adults looking forward to filing their taxes look forward to the simple, glorious tax return during tax season.
There are many reasons why tax season is a good time to buy a car.
Taking advantage of the new tax year and temporary increase in cash flow, auto dealers and buyers alike take advantage of this time. Maybe you'll be one of the lucky ones, who gets quite a bit of extra cash after filing your taxes. Rather than wasting money on things you might not need, consider an affordable and responsible investment like a certified pre-owned car from a reputable dealership. Don't miss out on tax season; you'll be glad you did.
Reason #1 to Purchase During Tax Time: Dealers are eager to get rid of their winter surplus cars.
In the final quarter of a previous year, car dealerships tend to ramp up their inventory. It means stocking up on new inventory so they can sell the newest goods. It is possible, however, that if the latest products do not meet the customers' expectations, they might end up with a surplus. Although that might not be the case, the later in the year and the longer a car dealership keeps a car, they are less likely to sell that car in the long run. In order to get rid of this winter surplus, they take advantage of sales times during the year to sell it. Finally, they begin thinking about their winter sales again. For auto dealerships, tax time is one of the busiest times of year. It allows them to sell off their cars as well as giving car buyers the incentive to use their tax dollars.
Reason #2 to Purchase During Tax Time: Car sales typically occur during tax season.
Most car dealerships follow a fairly predictable schedule when it comes to sales schedules. This is especially true during tax time. Nearly 25% of Americans wait until the last two weeks of the tax return season to file their tax returns, according to Turbo Tax. In addition, many people submit their taxes a month before, which means they don't receive their tax returns until after tax season is over. The car dealerships are aware of this, and therefore provide reasons for customers to come in and spend their tax dollars. Sales around this time are often tax-saving. For those who wait until then, there are often tax rebates. As Memorial Day marks the end of the tax return season, it is an ideal time to purchase a new vehicle.
Reason #3 to Purchase During Tax Time: You'll have extra cash on hand to put down or pay for monthly payments.
You can still use your tax return for the purchase of a new car even if you were planning to buy one before you received your tax return. Those of you who plan ahead can use the additional money to put toward the down payment you intended to pay on your car. As a result, you will pay less in the long run. You can use your tax return to make a down payment on a reliable car if you know you can make monthly payments but not a full down payment.
Reason #4 to Purchase During Tax Time: You'll have plenty of time to figure out where you'll pay the sales tax next year (should it be necessary).
Private sellers can alter the price you expect to pay and ruin your dreams of buying a car if you plan on buying from them long-term. It's a good thing you can set aside taxes for the sales tax for your car if you buy outright during tax season. Consider working with a car dealership, like Certified AutoBrokers, to avoid sales tax issues later on. Dealerships will often help you figure out sales tax upfront, but you still have to pay it. The full price includes sales tax, so you don't have to calculate it yourself or end up paying more in the future.
Reason #5 to Purchase During Tax Time: Interest rates are typically lower during tax season than at any other time of year.
The interest rate is often the bane of the existence of car buyers. In the long term, they can drastically alter what you expect to pay, and can even make your dreams of buying a car moot. Tax time is a great time to find low-interest rates, and you can often find rates up to 1%-2% lower than any other time of the year. Those with a less than perfect credit history may especially benefit from this. Higher interest rates can be a danger to those with lower credit scores. If your credit history is shaky, you should do your homework and buy during the best credit rate periods for you. Certified AutoBrokers wants to help you use your tax return in the most efficient way possible. If you live in Buffalo, Rochester, Erie, or Syracuse and need a new car, start making a plan. Set aside your tax return to buy a car and schedule an appointment with us to learn more about the cars we sell and what we do here at Certified.