Here is a great article for car buying during tax time. In the market for a vehcile? Stop by GT Auto Sales! We will treat you right!
Tax Season is Auto Season: What You Need to Know
"Patch" talked with Hazelwood car dealerships to get the inside scoop on buying new cars during tax season.By Angela Atkinson, Patch Poster | Apr 29, 2011 6:30 am ET | Updated May 19, 2011 12:39 pm ET
When my husband's beloved '98 Mazda finally kicked the bucket at nearly 200,000 miles, we knew we needed to get a new car. Fortunately for us, it happened right around tax time, and we were able to use part of our tax return as a down payment. After shopping around, we settled on a 2011 Nissan, which we purchased from on Dunn Road.
For many Hazelwood families, receiving their tax returns means finally getting the new car they need. A survey conducted by the National Retail Federation (NRF), stated that more than 13 percent of Americans plan to spend their tax returns on big-ticket items, such as autos.
"Many Americans have spent the last few years paying down debt with their tax refunds, but for some, it's the perfect time to buy something nice for a change," said Phil Rist, executive vice president of Strategic Initiatives, in a press release issued by NRF.
reports that sales trends show local residents are on the same page, saidJerry Eickel, Hazelwood Bommarito's general manager.
"When people find themselves in a positive cash position due to an income tax refund, lending institutions are more receptive to finance a purchase because buyers can provide a down payment," Eickel said.
If you're a bear, you can keep sleeping. But if you're a homeowner, now is the time to get stuff done.
In fact, auto dealers generally see a healthy spike in sales from mid-February until early June, presumably due to tax season. Some financial experts advise against purchasing cars during tax season because prices may be higher due to increased demand. However, Eickel said that Bommarito and its manufacturers offers tax-season specials.
"During tax time, Bommarito of Hazelwood partners with our lending institutions to offer lower interest rates, usually 1 to 2 points," Eickel said. "Also, traditionally, new car manufacturers have huge rebates and incentives during the March-to-May time frame."
Auto manufacturers have a strong influence when it comes to new car sales, through both incentives and special financing programs, as well as production rates and inventory levels.
The spring market is a buyer's market, Eikel said.
"The spring market is a great time to purchase a vehicle, because dealers are coming out of the winter season and are anxious to sell cars," he said. "The extra cash in hand from the tax refunds puts consumers in a powerful position."
Kelley Dennis, a sales consultant at in Hazelwood said she does well during this time of year, but sometimes car buyers tempt themselves with something that may too large for their budget.
"Tax time is the best time," she said. "But people can bite off too much sometimes because of the help an income tax refund check gives on the front end, and then financiers have to grab the cars later on in the year."
Dennis, who spoke with Hazelwood Patch editor Candace Jarrett while she was car shopping, said that Behlmann works with customers to ensure a note they are comfortable with paying as it doesn't want to see any customer overwhelmed with a new car note.
Eickel said that Bommarito does not see an influx of repossessions on cars purchased during tax time, but Hazelwood residents would do well to shop wisely.
Tips for Buying Autos During Tax Time
- Be sure you can afford the payments and related expenses. Although it may seem like a good idea to use your tax refund as a down payment on your new car, take a careful look at your budget and determine exactly how much you can comfortably afford to spend each month. Don't forget to consider the added costs of full-coverage insurance, fuel and maintenance.
- Understand what you can expect from the dealership. Some fees are non-negotiable, but most costs and incentives can be discussed and adjusted. For example, you may be able to secure a maintenance package that will save you the cost of oil changes and other general maintenance costs for a period of time. Alternatively, you could negotiate the price of the car or get special features thrown in free.
- Know when to walk away. If you feel uncomfortable or unsatisfied with the service you're receiving from a dealership, don't hesitate to find another one. And, once you've made your purchase, share your experiences by writing a review or telling friends about it.