Tax refund season is here, and for a lot of people, that extra cash feels like a green light to finally make some long-awaited purchases. In fact, this year’s refunds may be among the biggest in recent years, according to a report from Oxford Economics—which means more people might be ready to spend.

One of the top things people put that money toward? A vehicle. Especially a used one. The Oxford report shows that used cars are one of the most common tax refund purchases. With resale values still holding strong, this season is prime time for buyers looking to upgrade or replace their ride.

But before you jump into car shopping, it’s worth taking a beat. A few smart moves now can save you from a lot of regret (and bills) later.

Stick to Your Budget—Seriously

Used cars can be a great deal, especially when you consider that the average price tag is about half that of a new car, according to data from Kelley Blue Book and Cox Automotive. That said, it’s still easy to get swept up in the excitement and overspend.

“One of the biggest mistakes buyers make is stretching their budget just to get a newer or flashier model,” says Laura D. Adams, a personal finance expert and host of the “Money Girl” podcast. “There’s a sweet spot—vehicles that are lightly used and well-maintained can offer great value without the sticker shock of something brand new.”

Shop with dealers or retailers that list transparent pricing so you know exactly what you’re getting into. A straightforward buying experience helps you stay on track financially—and avoid surprises later.

Down Payments: More Now, Less Later

If you’ve got a decent refund coming your way, putting more down upfront can pay off in the long run. A bigger down payment often means lower monthly payments and less interest over the life of the loan. That can make your budget feel a lot more manageable down the road.

“When setting a car budget, people tend to focus on the monthly payment,” Adams explains. “But putting a little more down at the start can make a noticeable difference over time in both payments and total cost.”

Online auto loan calculators can help you crunch the numbers and see how different down payments impact your loan.

Prioritize Reliability Over Bells and Whistles

Whether you’re buying from a dealership or a private seller, the most important factor is reliability. Do your homework. Read reviews. Check the vehicle history. And always take it for a test drive if you can.

“Maintenance issues can sneak up on you, especially with older vehicles,” Adams says. “Make sure you’re buying from a source you trust. The last thing you want is to end up pouring your refund into repairs.”

Some dealers offer certified used programs that include multi-point inspections, warranties, and return policies—bonus perks that can offer peace of mind.

Bottom Line: Make Your Refund Work for You

A solid used car can be more than just a purchase—it can be a smart investment in your day-to-day life. And with a little prep, your tax refund could be the perfect down payment to get you there.

Just take your time, do your research, and focus on what works for your budget and lifestyle. That’s how you turn a tax refund into something that keeps paying off long after spring has come and gone.