Why use my refund as a down payment?

Tax refund season can be a tremendous financial opportunity or an annual reason for regret.  Many people spend their refund money so quickly that they forget to handle some of the important things that needed attention.

With the tax refund delay this year, take this opportunity to budget where your money is going.  You may find your tax refund dollars going further than they ever have before.

Do you need a car?  Use part of your refund as a down payment.  Some dealers will help save you hundreds of dollars by filing your taxes for you with a reputable, nationwide tax company with over 20 years of experience.

If you are able to find a dealer who can file your taxes on site, they will understand the refund delay and may be more likely to work with you on financing and affordable payments.  They may even allow you to drive today, before your tax refund even arrives.

Make your tax refund go farther by maximizing your down payment and lowering your car loan payments.

Customers with good credit can see interest rates on an auto loan can range from 5% to 10%.  If you have bad credit, no credit, repossessions, late payments, medical bills, issues from a divorce, or a recent job loss, interest rates can climb as high as 29%, depending on what state you live in.  Large down payments can save you THOUSANDS in the long run!

Not only will a bigger down payment save you money on interest over the months and years of your car loan, but that extra money can also get you a lower rate due to a reduced risk to the dealer.

The benefit of a larger down payment can also continue throughout the year with lower auto loan payments.  Often, that is the worst part of the car buying experience is the obligation to pay so much every week or every month.  But a larger down payment can put more money in your pocket every month.  Plus, a big down payment will shorten the terms of the financing, allowing you to pay it off sooner!

So while you wait for your tax refund this year, take a minute to think about where the money is going.  Do you really need a bigger TV?  Is that night on the town really worth it?  Pay yourself first this tax refund season with a more reliable car with lower payments; and do so as you pay LESS money in interest.

This could be the best vehicle you have ever owned AND could also be the one you paid the least amount for when you consider how much you saved on financing.