If your current car is showing its age, your tax refund and trade-in value could be the perfect combo to get you into something better.
Here’s how to make it work.
Use Your Tax Refund as a Down Payment
Many people put their tax refund toward a vacation or pay down debt. But using it as a down payment on a newer vehicle can give you long-term value. It can reduce your monthly payment or even help you qualify for better financing. In some cases, your refund could cover your entire down payment.
Trading In Can Lower Your Sales Tax
Here’s something not everyone realizes: trading in your current vehicle can lower the amount of sales tax you pay on your next one.
In most states—including New Jersey, Pennsylvania, and Florida—sales tax is calculated on the price of the new car minus your trade-in value. So if you're buying a $25,000 car and your trade-in is worth $7,000, you only pay tax on $18,000. That’s real money saved.
Know What Your Trade-In is Worth
Before you start shopping, determine what your vehicle might be worth. You can get a free, instant trade-in value on our site—no strings attached. It’s based on real-time market data, not guesswork, so you’ll have a solid idea of what to expect.
Get Your Trade-In Value
Combine and Conquer
When you combine your refund with your trade-in, you’ve got a strong start toward upgrading your car this spring. Whether you're looking for something more reliable, more fuel-efficient, or just newer, this could be your best window to make a smart move.
