Car Loan Refunds - Use Your Tax Refund to Buy a New Car

Using a tax refund to purchase a new car is a smart move. It makes the process of financing a new car less stressful, and gives you more options. You can use the money to lower your interest rate, get a lower down payment, or put the money into a savings account.

A tax refund can also be used to pay off your current car loan. You can use it to pay off the balance in full, or ask for an extra payment to be applied to the principal. This will decrease your interest rate and will also lower your monthly payments.

Another car loan refund-worthy trick is to make your payments early. This will reduce the amount of interest you pay and will allow you to save on the costs of repossession. Some lenders will waive these fees, but it's always a good idea to discuss this option with your lender before you do anything.

Another car loan refund-worthy trick involves making a large down payment. While this is a smart move, it can be difficult for people who struggle with their credit. Some subprime lenders will require you to make a down payment of only $1,000. However, putting down a large chunk of your tax refund can help you save a lot of money over the life of your loan.

A car loan rebate can also be a good way to save on upfront costs. A rebate is usually restricted to new vehicles, and is advertised in tandem with other features, such as special interest rates and lease deals.