With tax season in full swing, now could be the time to take advantage of current car deals and your hard-earned tax refund dollars to get your next auto loan. Your tax refund could help you with a down payment requirement if you have bad credit – combine that with current deals and you could save some extra cash when you finance.
Down Payments and Your Auto Loan
There are many reasons why a down payment is a good idea, regardless of your credit score. A larger down payment means a lower monthly payment, simply because you don’t have to finance as much. It also means you pay less in interest charges, saving you more money in the long run.
If you have bad credit, a down payment is almost always required for a car loan from a subprime lender. In this case, your tax refund could offer some relief from having to wait and save for a down payment before you apply for your next auto loan.
Whether or not you know the refund amount you’re going to get, there are some offers that dealerships are currently rolling out. As a result of the coronavirus, or COVID-19, outbreak, a number of lenders are not only working with current customers to manage their car loan payments, they’re offering special programs to those currently looking for their next vehicle.
Automakers Currently Helping Buyers
Those dealerships that are currently open are operating in accordance with federal and state guidelines due to the coronavirus situation. At the same time, a growing number of dealers are also offering pick-up-and-drop-off service on cars for their current customers to minimize contact and help stop the spread of the virus.
In addition to offering vehicle service options, you may be able to complete much of the car buying process over the phone or online, while some dealerships are offering to drop vehicles off and complete the paperwork at customer’s homes.
As for current deals, a number of manufacturers are offering buying incentives and payment assistance for their current customers.
Here are some of the deals currently being offered:
- General Motors – Offering new car customers 0% APR for 84 months on select models. Some customers could also get payments deferred for up to four months. Offered on some Chevrolet, Cadillac, GMC, and Buick vehicles, for customers with good credit. GM also is offering to drive newly purchased cars to a customer’s home.
- Ford and Lincoln – Offering new customers the option to delay first payments up to 90 days, if financed through Ford Motor Credit.
- Fiat Chrysler – Offering new customers up to $15,000 off MSRP on some Chrysler, Dodge, Jeep, and Ram vehicles.
- Hyundai and Genesis – Offering new customers the option to defer payments for 90 days on some cars purchased before April 30, and offering to help new owners with payment assistance for up to six months on select models.
Need Help Finding a Dealership?
If you need to stay home due to recent events, or you don’t want to waste time driving from dealer to dealer, we want to help. At The Car Connection, we’re connected with dealerships across the country, including ones that have special finance departments for those with less than perfect credit.
Simply fill out our auto loan request form, and we’ll get to work matching you to a dealer in your local area. There’s never an obligation to buy, our form is secure and easy, and you can fill it out from the comfort of your own home. Let’s get car shopping!