While some people dread tax season, it feels like Christmas if you’re on the receiving end of a refund. You have to wait for the money to hit your bank account or mailbox, and then you’ll have some serious spending power. Instead of buying a bunch of little things and having nothing to show for it, you can get the most out of the windfall by putting it toward a car. First, check out some tips for using your tax refund to buy a car. Then you need to wait for the money to arrive and you can do some shopping.
Make a Hefty Down Payment on a New Car
You can put your tax return to work for you by using it as a down payment for a new vehicle. This is beneficial for several reasons, starting with lower monthly payments since you won’t finance as much money.
Plus, paying several thousands of dollars upfront lowers the risk of owing more on the car than it’s worth, which is a headache when upgrading.
And here’s a benefit you might not expect. If you have less than perfect credit, a large down payment can be your ticket to more financing options and lower interest rates. Making a large down payment takes a level of commitment that lenders appreciate. This means they’ll be more willing to work with you.
Get a Great Deal by Making a Big Down Payment on a Used Vehicle
You can also use your refund to purchase a car that’s new to you but used by someone else. Now, you might think used cars are old, raggedy, and past their prime, but many only have a handful of miles and look like new. And while they look fresh off the showroom floor, the sticker prices are significantly lower. Thus, you can get something with the latest features while staying within a tight budget.
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Use Your Refund to Get in the Position to Buy
Your refund gives you some extra money to play around with, but you might not be ready to buy a car quite yet. That’s not a problem since you can use your tax refund to get to where you need to be. For instance, you can apply your refund to your current loan to pay it off sooner, so you’ll be ready to upgrade in the near future. You might even be able to refinance the loan after paying some off to get a better interest rate.
Cavender Chrysler Jeep Dodge RAM in Columbus, Texas, can help you maximize your tax refund when buying a car. And you don’t even have to visit us in person to close the deal. You can handle it all from home, starting with finding your car and ending with us delivering it to you.
You can also come in to receive our white-glove service. We will go over all the features and ensure you know the ins and outs before driving off the lot. We will do everything in our power to match you to the car of your dreams. No matter which option you choose, we put the customer first.
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