Using Your Tax Refund To Buy A Car
If you’re in the market for a new car, tax season is the best time to buy. Using your tax refund to buy a new car can save you money over the course of a loan and help you get into a nicer, more efficient model. The following are some of the benefits of using your tax refund to buy your next new car.
Lower Monthly Payment
Did you know that your tax refund can help lower your monthly car payment? Using the money from your tax refund as a down payment can reduce the amount you need to borrow to purchase a new car.
If you have to borrow less money, you may be able to select a shorter loan term or enjoy a lower interest rate. Either way, you can reduce the amount of money you repay by using your tax refund as a down payment.
Safety Net
Having a few thousand dollars sitting in the bank provides peace of mind and can act as a safety net. If you don’t want to use the money as a down payment, you can rest easy knowing you have months of payments in the bank.
For example, a $3,000 tax refund could be used to make anywhere from six month’s to a year’s worth of car payments. Then, even if you lose your job or have unexpected expenses, you have some money in the bank to save yourself from financial distress.
Get Pre-Approved
Since you’ve already got an idea of how much your down payment will be, you can better research vehicles and get preapproved for a loan. Once you have solid numbers, you can narrow your car selection to specific new models that fit in your budget.
By getting preapproved, you already know the terms, including the total amount borrowed and APR. That knowledge can give you an advantage when you decide to take a new car for a test drive.
If you need a new car, your tax refund can go a long way toward making that happen. Get started on the car shopping process at Rothrock Motors!
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