With tax season here, many car owners have questions. How are your taxes affected by a new car? Our Honda financial experts at Heritage Honda Westminster are sharing a few tips.
Claim a Sales Tax Deduction
If you itemize your deductions on your taxes, you can add a sales tax deduction for your recent vehicle purchase. The amount you paid in taxes should be outlined on your bill of sale or you can utilize a sales tax deduction calculator. Make sure to discuss your options with your tax preparer.
Consider Your Business Expenses
Do you use your vehicle for business purposes? There are many ways that your taxes may be affected. In fact, you may be able to deduct all or part of your purchase price, your business-related car expenses, and even your mileage.
Maximize Your Tax Refund
If you’re in the market for a new vehicle, tax season can be one of the best times to shop. You can utilize your tax refund as a sizeable down payment. Aim for a down payment of at least 20 percent if you’re purchasing a new vehicle or at least 10 percent if you’re purchasing a pre-owned model.
The Perks of a Down Payment
While a down payment isn’t required, there are many perks to making one. For starters, you’ll likely get more loan offers, perhaps with better rates, when lenders see that you’re a responsible buyer. Plus, you’ll have less to finance, which helps you save on interest, and limits how much you’ll spend overall.
Apply For Honda Financing in Westminster, MD
Tax time can be the perfect time to buy a new Honda vehicle. With your tax refund, you can make a great purchase at Heritage Honda Westminster. Stop in to get started today!
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