If you're planning to buy a new car, now is the time to get started. The average tax refund is around $3,000, which is enough to knock down your monthly car payment and help you drive away with a better deal. Make a down payment with your tax refund. If you're planning to buy or lease another vehicle, use the funds from your tax return as a down payment. A larger down payment can lower your monthly payments and help you save on interest throughout your loan.