Tax season is here. That means it’s time to think about what you want to do with your tax refund check. For many, this means it’s time to use this money towards a car — whether it’s a brand-new vehicle or updating their current one. Here, we look at how you can use your tax refund this year towards an auto-related purchase.
Make a Down Payment
If you have been thinking about purchasing a brand-new vehicle, then having a down payment is important — and your tax return can go a long way towards beefing up yours. The more money you put down on a new vehicle, the smaller your monthly payments will be. This could help you stay within budget easier if you happen to have a tight one. If you’re more interested in leasing a vehicle, you can also reduce the amount of your monthly lease payment by making a larger drive-off payment than you might normally.
Pay Down Your Existing Loan
Reducing your current car’s loan might not seem as exciting as using your tax return for a new vehicle, but it means you will be reducing your amount of debt. There are two ways to do so. You can either make an extra payment (or however many your return will allow) or pay down the balance. Just speak with your lender to see which option might work best for you — and be aware of whether or not you will incur a fee if you pay your loan off early.
Upgrade Your Current Car
While your current car might not feel like it’s brand new, you can make it so. Use the money you receive from your tax return to finally get the bells and whistles you would like. You can add technologies like a backup camera or parking sensors — among others — that will make it feel as if you’re behind the wheel of a new vehicle.
At Hardin County Honda, our financial experts are always ready to help you finance a new car or even refinance an old one. If you’re thinking about using your tax return on a new car, don’t hesitate to give us a call or pay us a visit!