Best Tax Refund Car Deals [2024 Edition]

Tax Refund Car Deals

Once you get past the stress and hassle of filing taxes, you’ll find a great opportunity for buying a vehicle.

Many people are fortunate enough to get tax refunds during this season, and car dealerships offer some incredible deals during this time.

While you’ll want to understand how your state sales tax works before maximizing your refund, tax season can be a great time to buy or lease a vehicle.

Is Tax Season a Good Time to Buy a Car?

Tax Season a Good Time to Buy a CarThere 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

Maximize Your Tax ReturnYou 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.

Best Tax Season Car Lease Deals

When you use your tax return to make a larger due-at-signing payment, you can significantly lower monthly car lease payments. Considering leasing a vehicle? Take a look at these top tax season car lease deals:

#1 Deal: 2023 Subaru Solterra

Lease Deal: $241/month for 36 months, $241 due at signing

>> Check Subaru Solterra Prices <<


 

#2 Deal: 2023 Nissan ARIYA

Lease Deal: $149/month for 18 months, $3,959 due at signing

>> Check Nissan ARIYA Prices <<


 

#3 Deal: 2024 Mazda CX-90

Lease Deal: $359/month for 36 months, $4,679 due at signing

>> Check Mazda CX-90 Prices <<


 

#4 Deal: 2023 Ford Bronco

Lease Deal: $333/month for 48 months, $4,012 due at signing

>> Check Ford Bronco Prices <<


 

#5 Deal: 2023 Kia Niro EV

Lease Deal: $199/month for 36 months, $3,999 due at signing

>> Check Kia Niro EV Prices <<


 

YearMakeModelLease OffersExpirationCheck Prices
2023SubaruSolterra$241/month for 36 months, $241 due at signing5/31/24Check Prices
2023NissanARIYA$149/month for 18 months, $3,959 due at signing6/3/24Check Prices
2024MazdaCX-90$359/month for 36 months, $4,679 due at signing6/3/24Check Prices
2023FordBronco$333/month for 48 months, $4,012 due at signing7/8/24Check Prices
2023KiaNiro EV$199/month for 36 months, $3,999 due at signing7/8/24Check Prices

Full List of All Tax Refund Car Deals

Looking for a certain make or model? Here’s a full list of all of the tax refund car deals to choose from:

YearMakeModelCash Incentives (up to)Best Avail. APRLease OffersExpiration
2024AcuraTLX4.90%$499/month for 36 months, $5,299 due at signing7/1/24
2024AcuraMDX3.90%$559/month for 36 months, $4,999 due at signing7/1/24
View All Acura Incentives
2024AudiA4$2,5003.99%$529/month for 36 months, $4,879 due at signing6/3/24
2024AudiQ3$2,5003.99%$429/month for 36 months, $5,029 due at signing6/3/24
View All Audi Incentives
2024BMW3-Series$589/month for 36 months, $4,639 due at signing6/2/24
2024BMW5-Series3.99%$699/month for 36 months, $6,559 due at signing6/2/24
2024BMWX33.99%$629/month for 36 months, $4,829 due at signing6/2/24
View All BMW Incentives
2024BuickEnclave$1,7500.90%6/3/24
2024BuickEncore GX$7500.90%$333/month for 36 months, $0 due at signing6/3/24
View All Buick Incentives
2023GMCAcadia$2,0001.90%$269/month for 24 months, $3,969 due at signing4/30/24
2024GMCCanyon1.90%$459/month for 36 months, $3,629 due at signing6/3/24
View All GMC Incentives
2024CadillacXT6$5003.90%$559/month for 24 months, $4,819 due at signing6/3/24
2024CadillacXT4$5003.90%$439/month for 36 months, $3,769 due at signing6/3/24
View All Cadillac Incentives
2024ChevroletBlazer$2,500$309/month for 24 months, $3,419 due at signing6/3/24
2024ChevroletEquinox$500$299/month for 36 months, $1,619 due at signing6/3/24
2024ChevroletSilverado 1500$349/month for 24 months, $4,929 due at signing6/3/24
View All Chevrolet Incentives
2024ChryslerPacifica$7506/3/24
View All Chrysler Incentives
2023DodgeCharger$2,9206.90%6/3/24
View All Dodge Incentives
2024FordEdge0.90%$419/month for 36 months, $4,419 due at signing7/8/24
2024FordExplorer$454/month for 48 months, $4,300 due at signing7/8/24
2023FordRanger
View All Ford Incentives
2024HondaCR-V2.90%$299/month for 36 months, $3,499 due at signing7/8/24
2024HondaOdyssey3.90%$439/month for 36 months, $5,499 due at signing7/8/24
2024HondaRidgeline1.90%$369/month for 36 months, $3,799 due at signing7/8/24
View All Honda Incentives




YearMakeModelCash Incentives (up to)Best Avail. APRLease OffersExpiration
2024HyundaiElantra$1,5003.89%$199/month for 36 months, $3,499 due at signing6/3/24
2024HyundaiKona$1,0004.29%$232/month for 36 months, $4,012 due at signing6/3/24
2024HyundaiSonata$7503.99%$259/month for 36 months, $3,499 due at signing6/3/24
View All Hyundai Incentives
2024InfinitiQ503.90%6/3/24
View All Infiniti Incentives
2024JaguarF-Pace2.90%$839/month for 36 months, $6,995 due at signing5/31/24
View All Jaguar Incentives
2024JeepGrand Cherokee$3,5003.90%$399/month for 36 months, $4,559 due at signing6/3/24
View All Jeep Incentives
2023KiaSorento0.90%4/30/24
2024KiaSoul$5004.75%$229/month for 36 months, $3,499 due at signing7/8/24
View All Kia Incentives
2024Land RoverDiscovery Sport4.90%$839/month for 36 months, $5,995 due at signing5/31/24
View All Land Rover Incentives
2024Lexus ES4.99%$589/month for 36 months, $3,999 due at signing4/30/24
2024LexusRX 3504.99%$539/month for 36 months, $4,999 due at signing6/3/24
View All Lexus Incentives
View All Lincoln Incentives
2024MazdaCX-50.00%$239/month for 36 months, $6,299 due at signing6/3/24
2023MazdaCX-9
View All Mazda Incentives
2023MitsubishiOutlander0.00%$389/month for 48 months, $3,388 due at signing6/3/24
2024MitsubishiEclipse Cross3.99%$389/month for 48 months, $3,388 due at signing6/3/24
View All Mitsubishi Incentives
2023MercedesCLA$819/month for 36 months, $5,913 due at signing5/31/24
2024MercedesGLS$1,149/month for 36 months, $8,143 due at signing5/31/24
View All Mercedes-Benz Incentives
2024NissanArmada5.90%$729/month for 36 months, $5,629 due at signing6/3/24
2024NissanLeaf$1,0004.90%6/3/24
View All Nissan Incentives
View All Porsche Incentives
2024RAMRam Pickup 1500$2,500$279/month for 42 months, $4,309 due at signing6/3/24
View All RAM Incentives
2024SubaruAscent2.90%$409/month for 36 months, $3,324 due at signing5/31/24
2024SubaruOutback2.90%$305/month for 36 months, $3,055 due at signing5/31/24
View All Subaru Incentives
2024ToyotaCamry4.75%$349/month for 36 months, $3,999 due at signing6/3/24
2024ToyotaCorolla Hybrid6.75%$279/month for 36 months, $4,999 due at signing6/3/24
2024ToyotaRAV43.99%$339/month for 36 months, $4,999 due at signing6/3/24
View All Toyota Incentives
2024VolkswagenAtlas Cross Sport2.90%$439/month for 36 months, $4,999 due at signing7/1/24
2024VolkswagenJetta2.90%$239/month for 36 months, $2,999 due at signing7/1/24
View All Volkswagen Incentives
2024VolvoXC904.99%$729/month for 36 months, $5,155 due at signing5/31/24
View All Volvo Incentives

These offers may vary based on location, credit score, and financing terms and are not guaranteed.  So use my free service to check discount car prices to get the best prices that include current manufacturer offers and incentives.

Frequently Asked Questions

Why is tax season a good time to buy a car?

Tax season is filled with enticing dealership promotions. Some will offer to match your refund, giving you a huge boost on a down payment. Furthermore, you’ll likely get some substantial money back which can help you get better financing deals as well.

When should I start shopping for a car with my tax return?

Start shopping early! You don’t need to wait until you finish your taxes and get your full refund. Start browsing as soon as you see tax season promotions come up.

How much of my tax return should I use when buying a car?

The answer to how much of your tax refund to spend on buying a car varies based on your financial situation and goals. Simply put, you shouldn’t use all of your income tax return on buying a car. You should save at least 10% for other expenses or unforeseen circumstances.

Is buying a car tax deductible?

If you itemize your deductions, you may be able to deduct vehicle sales tax for state and local tax, if you paid more local sales tax than income tax. Another instance you may be able to deduct for buying a car is if it is a business car. Be sure to consult your tax advisor for more information on what vehicle expenses are deductible for you.

Can I use my tax refund to buy a car?

Yes, you can use your tax refund to buy a car, and some dealerships will offer incentives for you to do so.

What is the 6,000lb vehicle tax credit?

The 6,000lb vehicle tax credit is a refund of up to $25,000 offered by the government to drivers who purchased a 6,000lb or more vehicle during the previous fiscal year.