Best Tax Refund Car Deals (2025 Edition)

Best Tax Season Car Lease Deals

Is Tax Season a Good Time to Buy a Car?

There are some times of year best known for great car-shopping conditions. Yes, tax season is a good time to buy a car!

Here are some of the top reasons to buy a car during tax season:

• Income Tax Season Deals. Dealerships know that many consumers get money back on tax returns. They offer enticing tax season deals!
• Maximize Your Return. Wondering what to do with the money you get back from taxes? Using some of it to pay for your new car can help you enjoy lower monthly payments and interest rates.
• Match Your Return. Some dealerships will offer to match your tax refund to boost your down payment! Check for details of your local dealerships. If you have bad credit, check out Auto Credit Express for options.

Will Car Dealerships Match My Tax Refund?

Yes, some car dealerships will offer to match your tax refund, meaning they will match (up to a certain amount) how much money you received in your tax refund and double your down payment.

For instance, if you get a $1,000 tax refund, a dealership offering this incentive would pay $1,000 themselves, leaving you with a total down payment of $2,000 that would go toward the total price of your car.

There are often stipulations on this deal, one being that there is always a limit on how much they are willing to match. Some dealerships will match up to $3,000, while others may only do $1,000. Another stipulation is offering the deal only on certain cars but not others.

Not all dealerships offer this incentive, so it’s important to check with your local dealership to confirm.

Can You Claim a New Car On Your Taxes?

Yes, you may be able to claim a new car on your taxes under certain circumstances.

For example, if you use the car for business purposes, you can deduct the business-related expenses, including the car’s depreciation, on your tax return.

However, the rules and requirements for claiming a car on taxes can be complex, so it is recommended to speak with a tax professional or consult the IRS guidelines for more information.

How to Maximize Your Tax Return When Buying a Car

There are many ways to contribute your tax refund to buy a car. Here are some ideas for how to maximize your tax return for car buying:

Using a Tax Return for a Down Payment to Finance or Lease

You can spend some of your tax return money on a new down payment for a vehicle. This applies whether you are looking to lease or loan a vehicle. Contributing more to the down payment helps you decrease the monthly cost, and can also help you qualify for more ideal financing arrangements.

Using a Tax Return for a New or Existing Loan

Buying a completely new vehicle is not the only option. Another great way to use your tax refund is to put money toward an existing loan. Paying off a larger section of the loan with your refund money will decrease the remaining balance and help you pay off the vehicle quickly and with less total interest.

Pre-Owned Vehicle Purchase

Budget car shoppers may enjoy using their tax refund on a pre-owned vehicle. You may be able to finance a sizable portion of a used vehicle with your tax refund money.

What Vehicles Are Tax-Deductible?

Vehicles that are used for business purposes may be tax deductible. The amount of the deduction depends on various factors, such as the use of the vehicle, the type of vehicle, and the amount of business-related expenses.

A few examples of vehicles that may be tax-deductible for business use include:

• Cars, trucks, and vans used for business purposes, such as making deliveries or transporting equipment
• Vehicles used by salespeople for visiting clients
• Cars used by employees for work-related travel

It’s important to keep detailed records of your business use of the vehicle and to consult the IRS guidelines or a tax professional for specific rules and requirements.

How Do I Claim My $7,500 EV Tax Credit?

To claim the $7,500 electric vehicle tax credit, follow these steps:

• Purchase an eligible electric vehicle (EV).
• Confirm the vehicle qualifies for the tax credit with the manufacturer.
• Claim the credit on your tax return using IRS Form 8936.
• File your tax return and wait for the credit to be processed.

Note: The credit amount may phase out for a particular manufacturer once a certain number of credits have been claimed for their vehicles. For more information, check out our guide on claiming your EV tax credit.