Use Your Tax Return For A Used Car Downpayment

Using Your Tax Return For A Used Car Downpayment

It's the time of year when we all start throwing around ideas of what to do with our tax return. Dream big, people! Instead of the same old list- replace older appliances, plan a trip you may not take, reorganize closets with upgraded shelving- THIS year, do something both practical AND exciting: how about using that tax return as a downpayment on your next vehicle from Driver's Way?  You'd be amazed at how far those refund dollars stretch when you shop with the used car experts at Driver's Way in Pelham and Birmingham!

Making the Most of your Dollar: Tax Return Money + EV Tax Credit!

Alabama news source AL.com reported the average tax refund last year was down more than 20% over the previous year, according to the IRS. So how do you make your refund dollar go further? Great news, Alabama drivers! As the electric vehicle (EV) market continues to grow, fueled by advancements in technology and environmental concerns, government incentives are a factor to consider when you’re purchasing your next vehicle- it’s like found money! The Electric Vehicle Tax Credit can be a significant factor if you’re considering a switch to electric driving, and Driver’s Way is a great place to explore your EV options in the Birmingham/Pelman area!.

2025 Tax Credit: A Continuation of Savings

The good news for potential EV buyers is that the federal government gives you a tax credit when you buy a used qualified electric vehicle (EV). This credit allows you to deduct a portion of the purchase price of a qualifying EV from your federal income tax liability. Our EV experts at Driver's Way can walk you through how to qualify, and which vehicles you’ll want to consider that come with the EV tax credit.

According to industry experts, the IRS maximum credit amount for 2025 is expected to remain at $7,500. However, there are a few key changes to be aware of:

• Critical Mineral and Battery Component Requirements: Introduced in 2023, these requirements remain in place for 2025. To qualify for the full $7,500 credit, the vehicle's battery must meet certain sourcing and manufacturing thresholds for critical minerals and battery components (JD Power, 2023).
• Manufacturer Limits: The previous limitations on manufacturer sales volume for the full credit may be phased out or adjusted in 2025. This could potentially impact the eligibility of certain popular EV models for the full credit (Experian, 2023). Our Driver’s Way sales staff will keep you updated on any official announcements from the IRS.Our experts can help you make the best choice for your tax benefit.

Stretch your Tax Return Purchase Power at Driver’s Way!

At Driver’s Way in Birmingham and Pelham, we work hard for our sterling reputation as a smart place to make your dollar go further when you buy a used vehicle. Our entire team is committed to customer satisfaction, from sales to finance to service. Because it’s in your best interest that we stay informed on best trade-in value and tax incentives, you can rest assured we’re doing our homework to make your car buying experience the best it can be. When you spend your tax return with us, you earn peace of mind! Come into one of our showrooms today, or view our current inventory and reach out to us with any questions!