Tax time can be a great time to get the vehicle you need! With an extra boost in your bank account when you get your tax refund, it's the perfect opportunity to use that money on a down payment toward the new or used car you've been eyeing, even if you have bad credit.
How to Use Your Tax Refund to Get a Car Loan
According to the IRS, the average American household gets a refund of around $3,000. Your refund may or may not reflect that amount, but no matter how much you get back once you file your taxes, there's a good chance that chunk of change can help if you need a car.
Depending on how much of a tax refund you receive, one of the best ways to let that money help you is by making the biggest down payment on your auto loan you can.
The reason this helps is because the more money you use as a down payment, the less money you have to borrow. When you borrow less, you also save money in the long run, because you end up paying less in interest charges over the life of your loan.
Plus, if you're struggling with credit issues, a larger down payment could help you get approved. This is because most subprime lenders require a down payment of at least $1,000 or 10 percent of a vehicle's selling price, whichever is less.
If the lender is on the fence, being able to provide a down payment that's more than what they're asking for could show them how serious you are about successfully completing the car loan.
Why Tax Time is the Right Time
Tax time presents you with many wonderful car buying opportunities. It's a good time to take advantage of many sales and deals only found this time of year, plus you could get in on some early spring new vehicle specials. Depending on how early you get your refund, you may even be able to find last year’s models at year-end prices.
Find the Right Vehicle to Spend Your Refund on
Here at The Car Connection, you can research which vehicle is right for you in our New and Used Car sections. Once you've found what you're looking for, we can help you find a dealer that has the lending resources you need.
Even if you have bad credit, no credit, or have been through a bankruptcy, our network of special finance dealerships works with lenders that can handle many types of credit situations. Getting started is easy, free, and never comes with any obligation! Simply fill out our online auto loan request from to get started today!