Tax
season is the time of the year when you are doing one of the two
things; either filing your taxes, or applying for an extension. The
pleasant surprise circling the tax season lies in obtaining a tax
refund. Essentially, a tax refund is the money that you overpaid to the
government, which is being returned back to you. As tax refunds are
unplanned, many people view them as bonus and get ready to splurge.
However, instead of spending it on extravagance, why not spend the money
towards a fruitful investment? If you are looking to dump your old
vehicle and buy a new car, tax refunds come in handy.
How can Tax Refunds help you in fulfilling your Car Dream?
1) Larger Down Payments help Credit Challenged Consumers
A good amount of down payment can work wonders for your auto financing.
According to an Internal Revenue Service report of 2017, an average
American obtains close to $3000 of tax refunds annually. An individual
with a bad credit score can seek to entrust the lender by paying a hefty
down payment amount. The seriousness of the deal increases in the eyes
of the lender as your creditworthiness rises with a larger down payment.
2) Pay off Existing Car Loan
Tax
refunds serve as great means by filling in the finance for your
previous car loans. You can do two things in order to lessen the burden
of your debt. One, you can make a double monthly payment or clear your
balance and attract low interest rates on your next auto loan. Second,
you can refinance your existing car loan
at a competitive rate. A tax refund will significantly help you in
reducing your principal amount and thereby, obtaining lower interest
rates.
3) Upgrade or Trade-in Your Current Car
Selling
your car or trading it can increase the probability of getting your
hands on a high-end new car. But, you cannot get a good deal on a car
that demands maintenance. So, use the tax refund money for maintenance
and repairs. Upgrade the car to increase its features, efficiency and
vehicle lifetime years. It will help you in getting a favorable deal.
Tax Refunds: Boons, Bonus & Bonanza
As
unexpected as they may seem, tax refunds can come in handy when you
need them the most. Your car purchasing and financing process can be
simplified by wisely using your refund money. Be prepared while you go
to a dealership and shop around a few dealerships before you settle. Tax
refunds are annual so make the most of it in getting one step closer to
your dream car.
Make
the most of your tax refunds by spending it on your car. And, if you
have not received substantial money in the form of tax refunds, do not
worry. Find an auto lender who will help you in obtaining low rate auto loans. By choosing a subprime auto loan expert, you will enjoy best rates and terms on your next car.
