How to Purchase a Car with Your Tax Refund

Our financing experts recommend paying a substantial down payment to help you get automotive financing for your next vehicle purchase. Even if you are opting to lease your next car, having a significant down payment can help reduce your monthly payments. By using your tax refund as a down payment, buyers may get better automobile financing options.

While brand-new cars certainly have their own set of benefits, a used vehicle is an affordable choice for many budget car purchasers. With a bit of research, it is easy to find a good deal on a pre-owned automobile. And smart customers can utilize their income tax return as the deposit towards the purchase of that car, truck, or SUV.

Beginning a car lease with a bigger down payment can significantly minimize how much the monthly payment will be. It is very advantageous even when customers want to prolong the lease because most car dealerships will typically allow the customer to continue their existing lease with a lower monthly payment on a month-to-month basis.

Using your tax return to pay off an existing automobile loan is always an excellent idea. Customers can make use of that extra cash to significantly reduce the balance on their current car loan. And they can do this either by making a few extra payments or by paying off the balance in full. Paying off or significantly minimizing the remaining balance will decrease the amount of interest that would have been paid over time.