What is the Advantage of Using My Tax Refund as a Down Payment?

When you are shopping for a new car near Troy, MI, you probably get asked a lot by sales consultants if you plan on putting any money down. A down payment impacts a lot of your car shopping experience. In fact, there are many reasons that a car shopper might want to put some money down on a new vehicle. If you are going to be receiving a tax refund, you can use at least a portion of that money toward your lease or auto loan. Here are some of the reasons that someone might want to put cash down on their purchase or lease:

It Reduces Your Monthly Payment

We know that monthly payment is the most important part of buying or leasing a new car for many folks who visit our dealership from the New Baltimore, MI area. It is completely understandable. Many of our customers are on a budget, which means that their monthly payment needs to fit into it. When you put money down on your new purchase or lease, you reduce the amount you are financing. Reducing the amount of money you are financing will also reduce your car payment.

It Improves Your Car Financing Application

People who put money down are actually improving their financing application. A bank or credit union looks at a number of factors when they are considering whether to approve you for an auto loan or lease. Reducing the amount you are financing with a down payment reduces the risk to the financial institution looking at your application. An application with less risk stands a greater chance at approval. It may also result in better terms.

It Reduces the Cost of Your Financing Overall

Paying back an auto loan is not as simple as paying back the cost of the vehicle. There is an interest rate attached to every car loan that is approved by a bank or credit union. Your interest rate is determined by the risk your application poses to a financial institution. As previously stated, putting money down reduces the risk to the bank or credit union, so it may result in a lower rate. A lower interest rate means that a car loan will cost less overall when you pay it back.

Check Out Our New and Used Vehicle Selections

Visiting the team at Parkway Dodge Chrysler Jeep means that you are going to get a chance to check out a number of high-quality cars, trucks, SUVs, and minivans. If you are looking for a new Chrysler, Dodge, Jeep, or RAM vehicle near Utica, MI, you will get to feast your eyes on popular models like the RAM 1500, Dodge Durango, Jeep Compass, Jeep Renegade, Jeep Grand Cherokee, Jeep Cherokee, Jeep Wrangler, and the Wagoneer.

Anyone looking at used cars for sale will also be happy with our selection. You can use your tax refund as a down payment toward a Certified Pre-Owned (CPO) Chrysler, Dodge, Jeep, or RAM vehicle. There is also the opportunity to shop our inventory to check out one of the many popular brands in our selection. Ford, Chevrolet, GMC, Nissan, and Land Rover are just some of the names you will often see at our dealership.

Contact the Team at Parkway Dodge Chrysler Jeep

If you have questions about how to maximize your tax refund, or about any of the vehicles in our lineup, you should not hesitate to contact our team by phone or email. You can also stop by for a visit.

The finance center at Parkway Dodge Chrysler Jeep, in Clinton Township, MI, is eager to help you make good use of your tax return money. Come to see us at our dealership, or schedule an appointment, so you can turn your refund into a new vehicle today.