With the new 2020 tax season filing deadline of July 15 just over a month away, it begs the question: what are you doing with your hard-earned tax refund?
Extended Tax Season 2020 Deadline
This year, the answer to the tax refund question may not be as fun and exciting as in previous years. With millions of Americans out of work due to the economic impact of the global coronavirus pandemic, many filers need their tax refunds in order to just stay afloat.
Some parts of our lives became a great deal more complicated this year. Other things we depend on to be a beacon of normalcy have changed – like the Federal tax filing deadline. This year, the deadline was pushed back by 91 days from April 15 to July 15, to help those people whose lives have unexpectedly ground to a halt.
However, if you're fortunate enough to not be in dire financial straits right now, this could be the perfect time to use your tax refund to finance a big-ticket item like a car.
More Bang for Your Buck
A tax refund can be the perfect start to a new vehicle loan. Refunds can help fund a down payment, or help you pay extra one month. Anything you can do to increase a down payment, or pay off your loan more quickly, can save you money.
If you're considering using your tax refund on a car, if you have poor credit, you typically need a down payment. The amount varies by lender, but as a bad credit borrower, you're typically required to come up with a down payment of at least $1,000 or 10% of the vehicle's selling price.
Another option could be to combine your refund check with your stimulus check (if you still have the money) to make an even bigger impact on your next car loan. The more you pay up front, the less you have to borrow and the less you pay overall.
This means less time that your vehicle has negative equity, and lower interest charges over the term of your loan. If you have enough by combining your tax refund and any other savings, you may be able to avoid negative equity altogether, depending on the price of the car you're financing.
Why Finance a Vehicle Now?
Right now is a unique time in our economic history. Spending your tax refund on a big-ticket item such as a vehicle is not only a wonderful way to invest your money, it's a great way to improve your credit and boost the economy.
Plus, the recent turn of events has caused many dealers and automakers to offer unprecedented discounts aimed at keeping or attracting customers.
Deals from many brands include deferred payments, lower interest rates, and extended loan terms. Some of these programs are even being offered to consumers with lower credit scores who typically don't have the opportunity to take advantage of such great offers.
Spending Your Refund on a Car
If spending your tax refund to help you get into the car loan you need sounds like a plan, then you should start here with Auto Credit Express.
We take the guesswork out of finding a local dealership that can help you. We work with a nationwide network of special finance dealers that are signed up with lenders that can offer auto loans to people with less than perfect credit. Skip the hassle and fill out our easy car loan request form today, and we'll get to work matching you with a dealership in your area.