Best Tax Refund Car Deals [2023 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.

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:

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:

2021 Nissan Altima#1 Deal: 2023 Nissan Altima

Lease Deal: $199/month for 18 months, $2,009 due at signing

>> Check Nissan Altima Prices

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Nissan Altima - Price Drop Alerts
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We'll also email you as soon as new car deals are published each month along with our best car buying tips to save you money!

 

2020 Ford Ranger#2 Deal: 2023 Ford Ranger

Lease Deal: $343/month for 36 months, $3,233 due at signing

>> Check Ford Ranger Prices

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Ford Ranger - Price Drop Alerts
Want the best deal? Get notified when the market price changes for the Ford Ranger so you can pounce when the price is right.
We'll also email you as soon as new car deals are published each month along with our best car buying tips to save you money!

 

2022 Hyundai Santa Fe#3 Deal: 2023 Hyundai Santa Fe

Lease Deal: $269/month for 36 months, $3,999 due at signing

>> Check Hyundai Santa Fe Prices

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Hyundai Santa Fe - Price Drop Alerts
Want the best deal? Get notified when the market price changes for the Hyundai Santa Fe so you can pounce when the price is right.
We'll also email you as soon as new car deals are published each month along with our best car buying tips to save you money!

 

2021 Mercedes GLB#4 Deal: 2023 Mercedes GLB

Lease Deal: $559/month for 36 months, $4,303 due at signing

>> Check Mercedes GLB Prices

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Mercedes GLB - Price Drop Alerts
Want the best deal? Get notified when the market price changes for the Mercedes GLB so you can pounce when the price is right.
We'll also email you as soon as new car deals are published each month along with our best car buying tips to save you money!

 

2021 Toyota Sienna#5 Deal: 2023 Toyota Sienna

Lease Deal: $359/month for 39 months, $3,999 due at signing

>> Check Toyota Sienna Prices

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Toyota Sienna - Price Drop Alerts
Want the best deal? Get notified when the market price changes for the Toyota Sienna so you can pounce when the price is right.
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YearMakeModelLease OffersExpirationCheck Prices
2023NissanAltima$199/month for 18 months, $2,009 due at signing1/31/23Check Prices
2023FordRanger$343/month for 36 months, $3,233 due at signing1/31/23Check Prices
2023HyundaiSanta Fe$269/month for 36 months, $3,999 due at signing1/31/23Check Prices
2023MercedesGLB$559/month for 36 months, $4,303 due at signing1/31/23Check Prices
2023ToyotaSienna$359/month for 39 months, $3,999 due at signing1/31/23Check 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
2022AcuraTLX2.90%2/28/23
2023AcuraMDX3.90%$619/month for 36 months, $4,299 due at signing2/28/23
View All Acura Incentives
2023AudiA45.99%$489/month for 36 months, $4,959 due at signing1/31/23
2023AudiQ36.49%$489/month for 36 months, $4,359 due at signing1/31/23
View All Audi Incentives
2023BMW3-Series$569/month for 36 months, $5,919 due at signing1/31/23
2023BMW5-Series $669/month for 36 months, $6,719 due at signing1/31/23
2023BMWX3$619/month for 36 months, $6,259 due at signing1/31/23
View All BMW Incentives
2023BuickEnclave3.90%$349/month for 24 months, $4,179 due at signing1/31/23
2023BuickEncore GX3.90%$199/month for 24 months, $3,989 due at signing1/31/23
View All Buick Incentives
2023GMCAcadia4.49%$289/month for 24 months, $2,389 due at signing1/31/23
2022GMCCanyon4.49%$379/month for 36 months, $3,980 due at signing1/31/23
View All GMC Incentives
2023CadillacXT6$509/month for 24 months, $4,809 due at signing1/31/23
2023CadillacXT43.99%$379/month for 36 months, $3,579 due at signing1/31/23
View All Cadillac Incentives
2023ChevroletBlazer$1,750 4.99%$279/month for 24 months, $2,369 due at signing1/31/23
2022ChevroletEquinox$2,250 2.99%$239/month for 24 months, $2,289 due at signing1/31/23
2023ChevroletSilverado 1500$399/month for 24 months, $5,569 due at signing1/31/23
View All Chevrolet Incentives
2022ChryslerPacifica7.26%$649/month for 39 months, $5,499 due at signing1/31/23
View All Chrysler Incentives
2022DodgeCharger$1,000 7.26%$459/month for 36 months, $4,999 due at signing1/31/23
View All Dodge Incentives
2022FordEcoSport3.90%$319/month for 36 months, $2,919 due at signing1/31/23
2022FordExplorer0.00%$499/month for 36 months, $4,129 due at signing1/31/23
2023FordRanger5.90%$343/month for 36 months, $3,233 due at signing1/31/23
View All Ford Incentives
2023HondaCR-V 3.90%2/28/23
2023HondaOdyssey3.90%2/28/23
2023HondaRidgeline1.90%2/28/23
View All Honda Incentives




YearMakeModelCash Incentives (up to)Best Avail. APRLease OffersExpiration
2023HyundaiElantra$7502.90%$219/month for 36 months, $2,999 due at signing1/31/23
2023HyundaiKona$7502.90%$209/month for 36 months, $3,999 due at signing1/31/23
2023HyundaiSonata$1,250 2.90%$269/month for 36 months, $3,299 due at signing1/31/23
View All Hyundai Incentives
2023InfinitiQ504.90%$549/month for 36 months, $4,925 due at signing1/31/23
View All Infiniti Incentives
2023JaguarF-Pace$1,119/month for 36 months, $4,995 due at signing1/31/23
View All Jaguar Incentives
2023JeepGrand Cherokee$3,000 7.26%$399/month for 24 months, $5,199 due at signing1/31/23
View All Jeep Incentives
2023KiaSorento3.25%$319/month for 36 months, $3,499 due at signing2/28/23
2023KiaSoul2.90%$239/month for 36 months, $2,799 due at signing2/28/23
View All Kia Incentives
2023Land RoverDiscovery Sport$799/month for 36 months, $4,995 due at signing1/31/23
View All Land Rover Incentives
2023Lexus ES4.99%1/31/23
2022LexusRX 3503.49%1/31/23
View All Lexus Incentives
View All Lincoln Incentives
2023MazdaCX-52.90%$319/month for 36 months, $2,999 due at signing1/31/23
2023MazdaCX-92.90%$424/month for 36 months, $3,499 due at signing1/31/23
View All Mazda Incentives
2022MitsubishiOutlander2.90%$369/month for 36 months, $3,368 due at signing1/31/23
2023MitsubishiEclipse Cross2.90%$379/month for 36 months, $3,378 due at signing1/31/23
View All Mitsubishi Incentives
2023MercedesCLA$549/month for 36 months, $4,403 due at signing1/31/23
2023MercedesGLS$1,139/month for 36 months, $7,683 due at signing1/31/23
View All Mercedes-Benz Incentives
2022NissanArmada2.99%$809/month for 36 months, $5,919 due at signing1/31/23
2023NissanLeaf2.99%$269/month for 36 months, $5,259 due at signing1/31/23
View All Nissan Incentives
View All Porsche Incentives
2023RAMRam Pickup 1500$540/month for 42 months, $3,999 due at signing1/31/23
View All RAM Incentives
2022SubaruAscent2.90%$329/month for 36 months, $3,829 due at signing1/31/23
2023SubaruOutback3.90%$345/month for 36 months, $3,545 due at signing1/31/23
View All Subaru Incentives
2023ToyotaCamry5.49%$319/month for 39 months, $2,999 due at signing1/31/23
2023ToyotaCorolla Hybrid 6.49%$329/month for 39 months, $2,999 due at signing1/31/23
2023ToyotaRAV4 5.49%$319/month for 39 months, $2,999 due at signing1/31/23
View All Toyota Incentives
2023VolkswagenAtlas Cross Sport3.90%1/31/23
2023VolkswagenJetta
View All Volkswagen Incentives
2023VolvoXC906.99%$755/month for 36 months, $5,155 due at signing1/31/23
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.

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.