It is tax season. Many people are filling their taxes and anticipating getting a large sum of cash for their tax refund. Suppose you have several thousand dollars tax refund and want to purchase a new car. In that case, using your tax refund is a great way to buy a new vehicle. Every year, people in Chandler use their tax refund to buy a new car. Here are some ideas on using your tax refund to purchase a new or used car near Phoenix.
Make a Large Down Payment
Using your tax refund to make a big down payment on a new car can reduce your monthly payments. A down payment will enable you to get favorable loan terms, and you will have more money in your pocket each month in Scottsdale. When you find the car that you want to purchase, you should strive to put down 20 percent of the purchase price. This amount will put you in the best position to get a loan approval with manageable monthly payments.
Pay Less Interest
You can use your tax refund to lower your loan amount and get a better interest rate on the remaining balance. A low-interest rate can save you thousands of dollars in interest payments, so you can save this money or use it to pay for other items.
Pay Down Debt
Using your tax refund to pay down debt is a great way to qualify for a loan to buy a new car. In addition, paying down or paying off your credit card or student loan debt will improve your credit score and save you hundreds of dollars a month. These savings will help make the monthly payments on a new car more affordable in Gilbert.
Our financing team at Sullivan Motor Company, in Mesa, is ready to help you get a new car with your tax return. Visit us today to take advantage of our latest deals.