SANTA MONICA, Calif. — With the IRS tax deadline fast approaching, many American taxpayers will soon find themselves with handsome sums of refund money at their disposal. And with the average tax refund roughly equal to the average down payment on a new vehicle (about $3,000), it might make sense to pull the trigger on a new car purchase. But according to Edmunds.com, the premier online resource for automotive information, prospective buyers should carry out their due diligence before running to the car dealership.
“Dealers are well aware that buyers may suddenly have an influx of cash on hand this time of year, so it’s not uncommon to see promotions and offers tied to tax season,” says Carroll Lachnit, Consumer Advice Editor at Edmunds.com. “And while there are good deals to be had on new cars, we strongly encourage consumers to take advantage of every research tool at their disposal before they plunk down their refunds as down payments.”
Before investing tax refunds in a new vehicle, Edmunds.com advises consumers to first check out the following tools and resources:
- Guide for First-Time Car Buyers — Edmunds.com’s one-stop shop to guide you through the new car buying process. From finding your car to closing the deal, Edmunds.com has you covered. And despite the title, this guide has some tips that can benefit everyone — even veteran car buyers.
- Monthly Loan Payment Calculator — Easily calculate your target monthly payment by inputting the new car price, value of trade-in, financing terms and expected down payment.
- Gas Guzzler Trade-In Calculator — With gas prices as high as they are, it might be tempting to trade in your gas guzzler for a fuel-efficient alternative. This calculator will help you understand how much — or how little — money you’ll actually save.
- Low APR vs. Cash Back Calculator — Dealers will entice you with low APR rates or cash incentives. Use this tool to find out which offer makes more sense for you and your wallet.
- True Cost to Own® — The cost of a new car goes well beyond the negotiated price. Find out how much your new car will cost over the next five years when you consider all the fuel, insurance and maintenance costs.
Tax filers may also be able to maximize their refunds by understanding some of the many car-related tax deductions.
About Edmunds.com, Inc. (http://www.edmunds.com/help/about/index.html)
Edmunds.com, the premier online resource for automotive information, launched in 1995 as the first automotive information Web site. Its acclaimed mobile site, Edmunds.com Android App and five-star Edmunds iPhone and iPad apps make car pricing and other research tools available for car shoppers at dealerships and on the go. Its automotive enthusiast web site, InsideLine.com, is the most-read car publication of its kind. Its highly regarded mobile site and iPhone app features the wireless Web’s most comprehensive gallery of automotive photos and videos. Edmunds.com Inc. is headquartered in Santa Monica, California, and maintains a satellite office in suburban Detroit. Follow Edmunds.com on Twitter@edmunds and fan Edmunds.com on Facebook.