When it comes to vehicle financing, there’s no better time to buy than during tax refund season. That’s because you have a wide range of options for maximizing your tax refund to save on the vehicles you love. Learn about the benefits of both a larger down payment and larger monthly payments with help from McGuire Buick GMC.
Benefits of a Bigger Down Payment
If you have extra resources on hand when purchasing a new vehicle, it’s often best to put them toward the down payment. The down payment is one of the most important factors to account for during the vehicle financing process, and a larger down payment usually means smaller monthly payments and accrued interest costs over time. The general guideline is that you’ll want to put down at least 20% of the vehicle’s value on the day of purchase, but if you are able to increase the down payment using your tax refund, there will be significant savings in the long and short term, and you’ll ultimately be able to pay your vehicle off more quickly.
Benefits of Larger Monthly Payments
While a larger down payment is often the best use of your tax refund, there are many benefits to making larger monthly payments. With larger monthly payments, you pay the principal down faster, therefore reducing interest costs over time. You also pay the loan off more quickly, and you reduce the risk of owing more on the vehicle than it’s worth. Additionally, holding onto your tax refund for increased monthly payments gives you more flexibility with your money.
Begin the Vehicle Financing Process in Little Falls, NJ
No matter what your vehicle financing needs might be, you’ll find the support you deserve at McGuire Buick GMC. We’re here to help you save on the vehicles you love, and to find the right financing terms for your lifestyle. Submit your application this tax season to get started.
