05 Mar Make the Most of Your Tax Refund
If you are anticipating a sizable tax refund this year, do you have a plan for your refund check? Many people choose to pay off some bills, add to their savings account or perhaps take a vacation. However, according to a survey conducted by The Wall Street Journal.com, “Almost one third of all Americans will spend their refund on an auto-related purchase.”
According to the Internal Revenue Service, the average federal tax refund is about $3,000.00. This is a large sum of money, so instead of splurging or making an impulse buy – it is a good idea to carefully consider what you are going to do with this return of your hard-earned money. If you need a new car – this may be a good time to make a purchase. While you certainly cannot purchase a new vehicle with $3,000.00 – these funds (or at least some of these funds) can be used as a down payment on a new or used vehicle.
A substantial down payment is one of the most important factors in securing an auto loan or lease. Particularly for shoppers with poor credit, using a tax return as a down payment can create finance options that otherwise may have been out of reach. A sufficient down payment can show the lender that you are serious about taking on a car loan, and reduce the likelihood that you will default on payments. Most importantly, a reduction of the loan amount means a smaller payment that can fit better into your budget. This factor also makes it easier to get approved for financing. If you are in the market to purchase a vehicle, a down payment can help you to:
- Get a lower monthly payment
- Get a lower interest rate
- Minimize interest charges
- Avoid being “upside down” (or owing more than your car is worth) in the event of a total loss of the vehicle
- Get a loan approved
Even if you are interested in leasing a vehicle –a down payment is often required when you sign the lease contract.
A substantial tax refund can help to get you on your way to purchasing a new car. Keep in mind that you still need to do your research regarding the type of vehicle that you may want and an amount that you can afford.
If you have good credit and a substantial down payment, you may be able to get a new car and an affordable monthly payment. Even if you have bad credit, there still may be financing options available to you. Visit CarCredit.com to fill out an application for the auto financing you need. Car Credit.com works with car dealerships that can offer auto loans to customers with less than perfect credit. Let Car Credit.com help you get the financing you deserve today.