Tax season is a great time to upgrade your vehicle, and if you’re expecting a refund, you have an excellent opportunity to maximize your trade-in value. By combining your tax refund with a trade-in, you can significantly lower the cost of a new or certified pre-owned (CPO) vehicle, reduce your monthly payments, and drive away in a more reliable and feature-packed car—all without overextending your budget.
If you’re in Wilson, NC, and considering trading in your car, here’s how to make the most of your tax refund to trade up to something newer, safer, and more efficient.
Why Trading In Your Car is a Smart Move
Many car buyers overlook the benefits of trading in their current vehicle when purchasing a new one. Here’s why it’s worth considering:
- Lower Your New Car Price: The trade-in value is subtracted from your new vehicle’s cost, reducing the amount you need to finance.
- Reduce Your Monthly Payments: A higher trade-in value combined with a tax refund down payment can significantly lower your monthly car payment.
- Convenience: Trading in at a dealership eliminates the hassle of selling your car privately.
- Potential Tax Savings: In North Carolina, sales tax is only applied to the difference between the price of the new car and your trade-in value, reducing overall costs.
If your current vehicle is older, has high mileage, or no longer meets your needs, trading in and trading up is a smart way to upgrade without a significant financial burden.
How to Use Your Tax Refund to Get the Best Trade-In Deal
Your tax refund can enhance your negotiating power when trading in your car. Here’s how to use it strategically:
1. Increase Your Down Payment
By using your tax refund as part of your down payment, you can:
- Reduce the total amount financed.
- Secure a lower interest rate.
- Shorten your loan term, allowing you to pay off your car faster.
2. Pay Off Negative Equity
If you owe more on your current car than it’s worth, your tax refund can help cover the difference. This prevents you from rolling negative equity into your next loan, saving you money in the long run.
3. Improve Your Trade-In Value
Before visiting the dealership, consider using part of your tax refund to enhance your car’s trade-in value by:
- Fixing minor cosmetic issues (scratches, dents, windshield chips).
- Replacing worn-out tires or getting an oil change.
- Cleaning and detailing the interior and exterior for a great first impression.
A little investment in your current vehicle can increase your trade-in offer by hundreds—or even thousands—of dollars.
How to Get the Best Trade-In Offer
1. Research Your Car’s Value
Before visiting a dealership, research your vehicle’s worth using tools like:
Having a ballpark estimate of your car’s value helps you negotiate a fair offer.
2. Get Multiple Trade-In Appraisals
Visit at least two or three dealerships to compare trade-in offers. Some dealerships offer special trade-in bonuses during tax season, which can increase your vehicle’s value.
3. Time Your Trade-In Wisely
Late winter and early spring are ideal times to trade in, as dealerships look to restock used inventory after year-end sales. This can lead to stronger trade-in offers.
4. Negotiate Separately
Negotiate your trade-in value separately from your new car purchase to ensure you get the best deal on both.
What Type of Car Can You Get with Your Trade-In & Tax Refund?
Under $20,000 – Budget-Friendly Upgrade
Best Choice: Used or Certified Pre-Owned (CPO) Vehicles
Examples:
- Honda Civic (CPO)
- Toyota Corolla (CPO)
- Chevy Malibu (CPO)
Why? Your trade-in and tax refund can significantly lower your financing needs.
$20,000 – $35,000 – New or Lightly Used Vehicle
Best Choice: New sedans or compact SUVs
Examples:
- Honda Accord (New or CPO)
- Toyota RAV4 (New or CPO)
- Chevy Equinox (New or CPO)
$35,000+ – Luxury or Full-Size SUV/Truck Upgrade
Best Choice: New SUVs and trucks with premium features
Examples:
- Honda Pilot
- Toyota Highlander
- Chevy Silverado 1500
Make Your Tax Refund Work for You
Your tax refund is a valuable tool for upgrading your vehicle. By combining it with a strong trade-in offer, you can:
- Lower the cost of a new or certified pre-owned car.
- Reduce or eliminate negative equity.
- Secure better financing terms and lower monthly payments.
- Drive a safer, more reliable, and feature-packed vehicle.
Visit Hubert Vester Auto Group for the Best Trade-In Deals
If you’re ready to trade in and trade up, visit Hubert Vester Auto Group in Wilson, NC. Their expert team can appraise your trade-in, help you maximize your tax refund’s value, and match you with the perfect vehicle.
Call (252) 677-5175 today to schedule an appraisal or explore the latest trade-in specials.
