If you are thinking about how to use your tax refund to buy a car, consider coming to S&S Best Auto Sales. Our used cars are quite affordable so your tax refund may cover a significant portion of the cost of one of our used cars. We at S&S Best Auto Sales have helped many people with tax refunds to get affordable used vehicles, so you won’t regret coming to us.
Use Your Tax Refund to Buy a Car as a Down Payment
One way to go if you are thinking about how to use your tax refund to buy a car is by paying a significant down payment. Most people may not realize it, but paying a large down payment has many advantages. If you commit that entire amount of your upcoming tax refund or at least most of it to a down payment for an auto loan, you significantly reduce the cost of the loan.
Interest is charged over the auto loan amount that remains after you pay your down payment, so when you pay a large down payment, you reduce the interest that you’ll be required to pay over the term of the auto loan. In addition, the auto loan term remains the same regardless of the down payment that you pay, so when you pay a larger down payment, you assure yourself of lower down payments because the small remainder of the auto loan is spread over even up to 72 months.
In addition, paying a significant down payment also shows the lending institution that you are a serious buyer. Lenders are quick to approve auto loan applications made by people who are ready to pay large down payments because the likelihood of being upside down with such car loans is minimal. The lender may even opt to give you a reduced interest rate.
How to Use Your Tax Refund with Options to Buy a Car
Another thing that you can do if you are thinking about how to use your tax refund to buy a car is trade in your current car. You can get to buy a newer car if you trade in the car that you currently have and add your tax refund amount to the trade-in offer that our auto experts will give you for your car. When you do that, you are sure to get enough money to buy a newer, nicer, and better car.
If you have received a tax refund and want additional guidance on how to use it to buy a used car, call S&S Best Auto Sales at 253-785-9382. Our friendly staffs are on hand to answer all of your questions. You can also visit our dealership at 2712 Auburn Way N., Auburn, WA 98002.