Drivers all across the St. Louis area are already dreaming of what they're going to do with their tax return checks from the government. Some might be shopping around for a fancy new TV--others are pricing out plane tickets to fly somewhere warm and escape this brutal Missouri winter!
But, if your current car is letting you down and it's time to get into a nicer vehicle, you should consider using your tax return as a downpayment for a budget-friendly sports car, a truck, or an adventurous SUV.
No matter what you get back this tax season, even a few hundred dollars can make a difference in your monthly payments for an auto loan.
Tax Refund Downpayment Options
If our shopper is working with that average $3,000 tax refund check--some will have a bit more, others will have a bit less--and a 60-month loan period, at average interest rates, here's what their shopping options might look like.
(Keep in mind that $3,000 doesn't include any savings that you've already collected, or the value of your trade-in if you have one. The payment options below are only estimates.)
- 10% downpayment: buying a $30,000 car - payments of $510/month
- 20% downpayment (recommended): buying a $15,000 car - payments of $226/month
- 50% downpayment: buying a $6,000 car - payments of only $57/month!
- 100% of payment: buy a $3,000 car outright - no payments, no problem!
If you're not sure what amount of total cost your tax refund downpayment should be, see if your downpayment will fit into the 20/4/10 budget recommendation and make sure that you're making a smart choice for your finances.
Financing Help No Matter What Your Refund Check Looks Like
But, what if your tax refund wasn't what you hoped it would be?
Or, what if you actually ended up owing money this tax season, but you still need a better, nicer, more reliable vehicle, and can't wait another year?
The guaranteed financing program at AutoCenters St. Charles has helped thousands of drivers in the St. Louis get the auto loan they need, good credit, bad, or none.
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