Best Tax Refund Car Deals [2023 Edition]
April 4, 2023
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.
Table of Contents
- Best Tax Refund Car Deals
- Is Tax Season a Good Time to Buy a Car?
- Will Car Dealerships Match My Tax Refund?
- Can You Claim a New Car On Your Taxes?
- How to Maximize Your Tax Return When Buying a Car
- What Vehicles Are Tax-Deductible?
- How Do I Claim My $7,500 EV Tax Credit?
- Best Tax Season Car Lease Deals
- Full List of All Tax Refund Car Deals
- Best Car Deals by Category
- Frequently Asked Questions
Best Tax Refund Car Deals
Dealerships know that tax returns offer many consumers some extra cash, and they want to encourage car purchases with their deals. Here are the top 5 tax refund car deals to check out now:

#1 Deal: 2023 RAM 1500
Cash Back Offer: | Up to $4,000 |
Financing Offer: | 2.9% APR for 72 months |
Lease Deal: | $463/month for 42 months, $3,999 due at signing |
#2 Deal: 2023 Volvo XC90
Cash Back Offer: | 2,000 |
Financing Offer: | 4.99% for 72 months |
Lease Deal: | $725/month for 36 months, $5,125 due at signing |
#3 Deal: 2023 Honda Ridgeline
Cash Back Offer: | N/A |
Financing Offer: | 0.9% APR for 24-36 months |
Lease Deal: | $349/month for 36 months, $3,999 due at signing |
#4 Deal: 2023 Mazda3 Hatchback
Cash Back Offer: | N/A |
Financing Offer: | 2.9% APR for 36 months |
Lease Deal: | $329/month for 36 months, $2,499 due at signing |
#5 Deal: 2023 Dodge Durango
Cash Back Offer: | $4,000 |
Financing Offer: | 7.26% APR for 60 months plus $2,000 in bonus cash |
Lease Deal: | $399/month for 36 months, $5,399 due at signing |
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.
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 Toyota Tacoma
Lease Deal: $259/month for 36 months, $2,999 due at signing
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#2 Deal: 2023 Subaru Forester
Lease Deal: $315/month for 36 months, $2,790 due at signing
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#3 Deal: 2023 Kia EV6
Lease Deal: $549/month for 36 months, $3,999 due at signing
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#4 Deal: 2023 Mazda CX-30
Lease Deal: $301/month for 36 months, $2,999 due at signing
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#5 Deal: 2023 Honda Odyssey
Lease Deal: $419/month for 36 months, $6,599 due at signing
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---|---|---|---|---|---|
2023 | Toyota | Tundra | $359/month for 36 months, $3,999 due at signing | 7/5/23 | Check Prices |
2023 | Subaru | BRZ | $419/month for 36 months, $1,469 due at signing | 6/30/23 | Check Prices |
2023 | Honda | HR-V | $259/month for 36 months, $3,399 due at signing | 7/5/23 | Check Prices |
2023 | Acura | RDX | $499/month for 48 months, $5,299 due at signing | 7/5/23 | Check Prices |
2023 | Nissan | Leaf | $309/month for 36 months, $2,479 due at signing | 7/5/23 | Check 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:
Year | Make | Model | Cash Incentives (up to) | Best Avail. APR | Lease Offers | Expiration |
---|---|---|---|---|---|---|
2023 | Acura | TLX | 4.90% | $439/month for 48 months, $3,999 due at signing | 7/5/23 | |
2023 | Acura | MDX | 4.90% | $609/month for 36 months, $4,399 due at signing | 7/5/23 | |
View All Acura Incentives | ||||||
2023 | Audi | A4 | 5.99% | $489/month for 36 months, $4,839 due at signing | 7/5/23 | |
2023 | Audi | Q3 | 5.99% | $459/month for 36 months, $4,079 due at signing | 7/5/23 | |
View All Audi Incentives | ||||||
2023 | BMW | 3-Series | $569/month for 36 months, $5,099 due at signing | 7/4/23 | ||
2023 | BMW | 5-Series | $659/month for 36 months, $6,359 due at signing | 7/4/23 | ||
2023 | BMW | X3 | $599/month for 36 months, $6,079 due at signing | 7/4/23 | ||
View All BMW Incentives | ||||||
2023 | Buick | Enclave | 2.49% | $349/month for 24 months, $4,329 due at signing | 7/31/23 | |
2023 | Buick | Encore GX | 2.49% | $199/month for 24 months, $3,989 due at signing | 7/31/23 | |
View All Buick Incentives | ||||||
2023 | GMC | Acadia | 1.90% | $289/month for 24 months, $2,789 due at signing | 7/31/23 | |
2022 | GMC | Canyon | ||||
View All GMC Incentives | ||||||
2023 | Cadillac | XT6 | $1,500 | 2.90% | $459/month for 24 months, $4,879 due at signing | 7/5/23 |
2023 | Cadillac | XT4 | $1,000 | 2.90% | $379/month for 36 months, $3,579 due at signing | 7/5/23 |
View All Cadillac Incentives | ||||||
2023 | Chevrolet | Blazer | $1,000 | 1.90% | $279/month for 24 months, $3,249 due at signing | 7/31/23 |
2022 | Chevrolet | Equinox | $1,250 | 1.90% | 7/31/23 | |
2023 | Chevrolet | Silverado 1500 | $399/month for 24 months, $5,879 due at signing | 7/31/23 | ||
View All Chevrolet Incentives | ||||||
2023 | Chrysler | Pacifica | $2,000 | $489/month for 36 months, $5,299 due at signing | 7/5/23 | |
View All Chrysler Incentives | ||||||
2023 | Dodge | Charger | $2,000 | 7.26% | $449/month for 36 months, $4,799 due at signing | 7/5/23 |
View All Dodge Incentives | ||||||
2023 | Ford | Edge | $479/month for 39 months, $4,423 due at signing | 7/5/23 | ||
2023 | Ford | Explorer | $1,000 | $503/month for 39 months, $4,339 due at signing | 7/5/23 | |
2023 | Ford | Ranger | $335/month for 39 months, $3,225 due at signing | 7/5/23 | ||
View All Ford Incentives | ||||||
2023 | Honda | CR-V | 3.90% | $319/month for 36 months, $3,599 due at signing | 7/5/23 | |
2023 | Honda | Odyssey | 3.90% | $439/month for 36 months, $6,499 due at signing | 7/5/23 | |
2023 | Honda | Ridgeline | 0.90% | $349/month for 36 months, $3,999 due at signing | 7/5/23 | |
View All Honda Incentives |


Year | Make | Model | Cash Incentives (up to) | Best Avail. APR | Lease Offers | Expiration |
---|---|---|---|---|---|---|
2023 | Hyundai | Elantra | $750 | 1.90% | $219/month for 36 months, $3,299 due at signing | 5/31/23 |
2023 | Hyundai | Kona | $750 | 1.90% | $202/month for 36 months, $4,012 due at signing | 5/31/23 |
2023 | Hyundai | Sonata | $750 | 1.90% | $269/month for 36 months, $3,299 due at signing | 5/31/23 |
View All Hyundai Incentives | ||||||
2023 | Infiniti | Q50 | 5.90% | $499/month for 36 months, $5,235 due at signing | 7/5/23 | |
View All Infiniti Incentives | ||||||
2023 | Jaguar | F-Pace | $1,169/month for 36 months, $4,995 due at signing | 6/30/23 | ||
View All Jaguar Incentives | ||||||
2023 | Jeep | Grand Cherokee | $2,750 | 2.90% | $458/month for 39 months, $3,799 due at signing | 7/5/23 |
View All Jeep Incentives | ||||||
2023 | Kia | Sorento | 3.25% | $319/month for 36 months, $3,499 due at signing | 7/5/23 | |
2023 | Kia | Soul | 2.90% | $239/month for 36 months, $2,799 due at signing | 7/5/23 | |
View All Kia Incentives | ||||||
2023 | Land Rover | Discovery Sport | $829/month for 36 months, $4,995 due at signing | 6/30/23 | ||
View All Land Rover Incentives | ||||||
2023 | Lexus | ES | 4.99% | $519/month for 36 months, $3,999 due at signing | 7/5/23 | |
2023 | Lexus | RX 350 | 4.99% | $619/month for 36 months, $4,999 due at signing | 7/5/23 | |
View All Lexus Incentives | ||||||
View All Lincoln Incentives | ||||||
2023 | Mazda | CX-5 | 2.90% | $319/month for 36 months, $2,999 due at signing | 6/30/23 | |
2023 | Mazda | CX-9 | 0.00% | 6/30/23 | ||
View All Mazda Incentives | ||||||
2023 | Mitsubishi | Outlander | 3.90% | $389/month for 36 months, $3,388 due at signing | 7/5/23 | |
2023 | Mitsubishi | Eclipse Cross | 3.90% | $389/month for 36 months, $3,388 due at signing | 7/5/23 | |
View All Mitsubishi Incentives | ||||||
2023 | Mercedes | CLA | $549/month for 36 months, $4,403 due at signing | 7/5/23 | ||
2023 | Mercedes | GLS | $1,139/month for 36 months, $7,733 due at signing | 7/5/23 | ||
View All Mercedes-Benz Incentives | ||||||
2023 | Nissan | Armada | 1.99% | $689/month for 36 months, $5,199 due at signing | 7/5/23 | |
2023 | Nissan | Leaf | 2.99% | $309/month for 36 months, $2,479 due at signing | 7/5/23 | |
View All Nissan Incentives | ||||||
View All Porsche Incentives | ||||||
2023 | RAM | Ram Pickup 1500 | $4,000 | 2.90% | $463/month for 42 months, $3,999 due at signing | 7/5/23 |
View All RAM Incentives | ||||||
2023 | Subaru | Ascent | 3.90% | $359/month for 36 months, $3,259 due at signing | 6/30/23 | |
2023 | Subaru | Outback | 3.90% | $319/month for 36 months, $3,069 due at signing | 6/30/23 | |
View All Subaru Incentives | ||||||
2023 | Toyota | Camry | 4.99% | $349/month for 36 months, $2,999 due at signing | 7/5/23 | |
2023 | Toyota | Corolla Hybrid | 5.99% | $309/month for 36 months, $2,999 due at signing | 7/5/23 | |
2023 | Toyota | RAV4 | 4.99% | $339/month for 36 months, $2,999 due at signing | 7/5/23 | |
View All Toyota Incentives | ||||||
2023 | Volkswagen | Atlas Cross Sport | 4.90% | 7/5/23 | ||
2023 | Volkswagen | Jetta | ||||
View All Volkswagen Incentives | ||||||
2023 | Volvo | XC90 | $2,000 | 4.99% | $725/month for 36 months, $5,125 due at signing | 6/30/23 |
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.
Best Car Deals by Category
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.
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