With tax returns being sent out, our Hondru Ford of Manheim dealership receives the question, "Should I use my tax refund toward my new or used vehicle?" all the time. If you're like many Americans, you'll see a good amount of money in your tax refund. Figuring out what to do with it is the hard part. While you may want to spend it on other things, we recommend using some of all of your tax refund toward your vehicle financing. This can be done in multiple ways. Here are two of the most common ways your tax refund can be used to lower your overall vehicle costs.
- Use Your Refund as a Down Payment – If you're receiving a good amount of money from your tax returns and you'd like to find a new or used vehicle, you may want to use the money as a down payment. Down payments not only help lower the overall price of the vehicle you're buying, but also lower the monthly payment price as well as the amount of interest you'll spend. The higher the down payment, the better, although most experts recommend a 20 percent down payment to really make a difference.
- Use Your Refund to Pay Your Current Loan – If you already have a vehicle, you may want to use some or all of your tax return to pay down the current car loan balance. While you're not technically buying a new vehicle, you'll still be saving money on your next car purchase because you'll have more for trade-in value when the time arises.
Contact Hondru Ford of Manheim to Learn More About Your Vehicle Financing Options
Do you have other vehicle purchasing questions? If so, we suggest talking to our Hondru Ford of Manheim team to learn more. We'd love to help every Lititz, East Petersburg, or Manheim area driver save as much money as you can on your next vehicle. Feel free to contact us or take the short drive from Lancaster, Mount Joy, Elizabethtown, or beyond to our Manheim dealership.