Home > Down Payments > Is My 2013 Tax Refund for a BHPH Down Payment

Is My 2013 Tax Refund Enough for a BHPH Down Payment?

Filing your 2013 tax return can enable you to buy a BHPH vehicle at your local used car dealership. How? By using your 2013 tax refund for a BHPH down payment, you may have adequate cash to qualify for your next used car.

We’re in the midst of our New Year’s 2014 resolutions and new beginnings. However, don’t forget last year’s tax return. Let’s hope for a generous tax refund. If you file by January 31, 2014, you should receiving your refund in less than 21 days. The IRS is starting its filing season for 2013 on January 31, 2014. There will be no benefit to filing before this date, and you’ll get your refund faster with e-filing and using direct deposit. The IRS anticipates issuing 90% of refunds within 21 days of filing.

A great avenue for funding your next vehicle is to bring in your tax refund to a dealer and use it as your down payment. Dealers will usually take as low as $500 down for a basic vehicles.

To begin your return, you can hire a tax preparer, like H&R Block, or complete your taxes yourself. Make it easy for yourself with software such as TurboTax Federal Free Edition. By submitting your return online aka “e-filing,” you can expedite the return and your refund. Don’t forget to file your state return. You could be eligible for a tax refund from your state in addition to a federal refund.

Saving for a down payment can be an difficult process. Using your 2013 tax refund takes away the stress of cobbling together a rather large sum of cash. So, get your taxes filed right away, and go shopping for your next BHPH used car.

Once you receive the refund, go to your local BHPH dealer to find your vehicle. You can initiate the shopping process online to see which dealer has in stock the types of cars that you would like to purchase. Decide how much of your refund you’d like to apply to your down payment before you arrive at the car dealership. You may need part of the refund to pay back other obligations. Allocate at least $500 for the down payment, and more cash if you’d like a nicer ride.

Guest post by Rian Taylor, BHPH marketing expert at DRIVE 1 AGAIN Used Cars in the Denver, Colorado metro area. Follow her on Google+