Now is typically the time when we tell you to take your hard-earned tax refund to a dealership in order to take advantage of tax-time car buying deals. This year, due to the coronavirus pandemic, the federal tax filing deadline has been pushed back until July 15. This means tax refunds from tax returns that are filed late are going to come later in the summer, which could be a great time to buy your next vehicle.
What an Extended Federal Tax Filing Deadline Means
Due to the many issues brought about by the coronavirus, taxpayers all across the U.S. now have until July 15 to file their federal tax returns. This extension applies to people who owe, and those entitled to a refund. This extension applies to all Americans, whether you’re directly affected by COVID-19 or not. What it may not cover however, is state tax filing, which, in some states, may still be April 15.
Typically, when a filer is expecting a refund, the standard IRS timeline to receive those funds if the return was filed electronically is around 21 days. There’s no guarantee that you’ll receive your refund by that time, though, and yours may come before or after that three-week waiting period.
With this year's deadline extension, that means many people could expect their refunds to come sometime in August or later, if they wait until July to file.
What This Could Mean for Car Buyers
With the potential to get a tax refund later in the year, now might be a good time to start saving for a down payment. This way, when your refund comes, you can combine it with any savings you have to meet the down payment requirement that comes with many auto loans, especially if you’re a borrower with bad credit.
Saving money may not be easy during the recent upheaval in the job market, but there are a few tips you can use to save a bit while you’re staying at home more than usual. For example:
- Save the money you’d normally use to fill up your gas tank. With many people working from home and only going out for necessities, Americans are spending less at the pump. You can take advantage of those savings by setting the money aside.
- Saving even $5 a day that you’d normally spend on coffee can add up. Putting aside $5 a day for 90 days nets you $450! While you’re waiting out mandatory shelter-in-place orders, or general social distancing, you may not be going out for things like coffee and fast food, all money that can be set aside for a down payment down the road.
When you follow simple tips like these, saving for a down payment doesn’t seem so hard. In no time, you can be saving your way toward the down payment you may need for your next vehicle. If you’re thinking about buying a car with bad credit, this generally means having at least $1,000, or 10% of a vehicle’s selling price.
Additionally, saving up along with a tax refund that comes in mid-August can put you closer to those usual summer sales from many automakers. So, saving your refund to hit Labor Day car deals could work to your advantage.
Finding a Dealership to Work With
Even though all this may sound like a good plan, sometimes things take a turn and you need a vehicle now. If this is the boat you’re in but bad credit is sinking your hopes of getting an auto loan, let us help.
Auto Credit Express is teamed up with a large network of dealerships all across the country that work with subprime lenders through their special finance departments. These lenders know how to help people who are struggling with credit issues. Getting started is easy. Just fill out our fast, free, and no-obligation car loan request form, and we’ll begin the work of matching you to a local dealer.