Monday, January 28, 2019
How to Use Your Tax Refund for a New Car
Tax time is the best time to buy a new car at Melloy Dodge. Using your refund to purchase your new car is a smart move because it can save you money, improve your cash flow, or help you qualify for a loan.
Buying your new car with your tax refund is budget-friendly. Since an average tax refund is nearly $3,000 according to IRS statistics, your refund allows you to make a larger down payment than you otherwise might. Buyers who can combine their refund with a trade-in can further increase their down payment. A sizeable down payment saves money because it reduces the amount you need to borrow, which lowers both your monthly payment and the amount of interest you pay.
An alternative is to use your refund to improve your monthly cash flow. Making your monthly car payments with your refund frees up cash each month for other expenses. An average refund should cover your car loan for several months.
If your credit is less than stellar, tax time is the best time of the year for a new vehicle. Your tax refund can help you qualify for an auto loan. The large down payment from your refund shows the lender that you're serious about paying for a vehicle. The lender considers that you would have a lot to lose if you were to default on the loan.
When you're ready to purchase your new vehicle, contact Melloy Dodge so we can help you find the car that's best for you. You can visit Melloydodge.com for more information on how to get pre-approved instantly!
Melloy Dodge, located at 9621 Coors Blvd NW, just north of Paseo Del Norte. We’re open Monday-Friday, 7 am to 6 pm and Saturday from 8 am to 5 pm.