Why Tax Return Season and Stimulus Checks are the Best Time to Buy a Car!

March 21st, 2025 by

Why Tax Return Season and Stimulus Checks are the Best Time to Buy a Car!

Tax return season and stimulus checks are more than just opportunities for financial relief—they can also be the perfect time to purchase a new or used vehicle. 

At Soerens Ford of Brookfield, we understand that timing can play a big role in your decision to buy a car. That’s why we want to highlight why this time of year is ideal for purchasing a vehicle and how you can benefit from these financial boosts!

 

Tax Refunds: A Perfect Opportunity for Car Buyers

Tax return season is one of the most anticipated times of year for many Americans, with the average tax refund typically hovering around $3,000. 

According to data from the IRS, in 2023, the average refund issued was approximately $2,800, which is a significant boost for many families. 

This extra cash can provide a solid down payment for a new or used car, making it an excellent opportunity for those who may have been putting off a vehicle purchase (source: IRS).

For many buyers, tax refunds are often seen as a “bonus” or “windfall,” which makes it the perfect time to make a big purchase. Whether you’re looking to upgrade your current vehicle, get a reliable car for your family, or buy your first vehicle, using your tax refund can significantly reduce your upfront costs. 

According to a 2022 survey by CNBC, nearly 30% of people plan to use their tax refunds for major purchases, with vehicles being one of the most popular categories.

 

Stimulus Checks: Extra Cash to Invest in Your Next Vehicle

In addition to tax returns, government-issued stimulus checks provide another opportunity to make a vehicle purchase. 

The recent rounds of stimulus payments, especially in 2020 and 2021, had a direct impact on car sales. For example, when the U.S. government issued $1,200 stimulus checks in April 2020, and later $600 and $1,400 checks, many consumers used these funds to make large purchases. 

According to Cox Automotive, about 20% of consumers who received stimulus checks during the pandemic used the funds to buy a car, with many opting for higher-end models due to the unexpected financial boost.

Stimulus checks also played a significant role in the used car market. With vehicle inventory running low due to supply chain disruptions, many consumers turned to used cars, which saw a sharp increase in sales. 

The extra funds provided by stimulus checks allowed consumers to get into vehicles that were previously out of their budget. This surge in demand for vehicles helped the auto industry recover from earlier setbacks caused by the pandemic.

 

Why Now Is the Right Time to Buy a Vehicle

There are several reasons why this time of year is ideal for buying a vehicle, and many of these advantages tie directly into tax returns and stimulus checks:

  1. Incentives and Special Offers: Around tax return and stimulus check time, many dealerships, including Soerens Ford, offer special promotions, rebates, and financing options. These deals are designed to help you get the best value out of your tax return or stimulus check. For example, many manufacturers offer 0% financing or cash rebates during this period, which can lower the overall cost of your vehicle. As of early 2024, a popular incentive includes 0% financing on select models, which is especially beneficial for those using their tax refunds or stimulus checks to buy a car.
  2. Use Your Tax Refund as a Down Payment: Applying your tax refund toward a down payment can help reduce the amount you need to finance, lowering your monthly payments and making it easier to afford a new vehicle. The larger your down payment, the less you’ll have to pay in interest over the life of the loan. For instance, a 20% down payment on a $30,000 car could reduce your monthly payment by hundreds of dollars, depending on your financing terms.
  3. A Wide Selection of Vehicles: At Soerens Ford, we offer a wide selection of both new and pre-owned vehicles, so you can find a car that fits your budget and lifestyle. According to J.D. Power data from 2023, the average price of a new vehicle in the U.S. surpassed $48,000. This makes a tax refund or stimulus check especially useful in covering part of the cost, potentially saving you thousands upfront. Whether you’re interested in the latest Ford models, or a reliable used car, now is the perfect time to explore our inventory and take advantage of deals you won’t find year-round.
  4. Better Financing Terms: Many lenders offer more favorable financing terms during tax season or after stimulus checks are released. For example, as of 2024, the average interest rate for a 60-month car loan in the U.S. is around 5.6%. However, some dealerships and lenders offer even lower rates—especially if you’re able to make a significant down payment from your tax refund or stimulus check. With your down payment or stimulus check in hand, you may be eligible for more competitive rates and loan terms, making it easier to secure financing that works with your budget.

Make the Most of Your Tax Refund and Stimulus Check

By using your tax refund or stimulus check as a down payment, you’re not only reducing the immediate cost of the car, but you’re also lowering your monthly payments. 

This makes it easier to manage your car purchase in the long term. With today’s competitive interest rates and financial incentives, you can drive away with a new or used vehicle for less.

Additionally, for those looking to trade in their current vehicle, tax refund season is a great time to get top dollar for your trade-in. 

According to Kelley Blue Book, the value of used cars in 2023 remained high due to limited inventory, so you may be able to get more for your trade-in now than you would during other times of the year.

 

Is This the Right Time for You?

If you’ve been thinking about buying a car, now is the time to take action. With the extra financial boost from tax returns or stimulus checks, you can secure the car you need without breaking your budget. 

And with the wide variety of incentives, rebates, and financing options available, it’s easier than ever to find the right car for you.

At Soerens Ford of Brookfield, we’re here to help you every step of the way!

Our team is ready to assist you in finding the perfect car that fits your needs, and we’ll help you navigate financing options to make sure you’re getting the best deal possible.

 

Come Visit Us at Soerens Ford of Brookfield

Tax return season and stimulus checks provide the perfect financial boost to purchase the car you’ve been wanting. 

Whether you’re looking for something brand new or a reliable used vehicle, we invite you to visit Soerens Ford of Brookfield.

Our team is here to answer your questions and help you make the most of your tax refund or stimulus check with a car purchase that fits your needs and budget.

 

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Posted in Car Buying Tips