Monthly Archives: January 2016

How to Use Your 2016 Tax Refund as a Down Payment


The deadline for filing taxes is still a ways out, but that doesn’t mean people haven’t already started to get that refund check in the mail.  For those who do received a refund check, this brings up the yearly question; what do you do with that money?  If you’re one of those people who is looking for ideas, have you thought about using it as a down payment on a new vehicle?

Many people, due to recent economic trends, have been sitting on cars on the verge of breaking down due to being unable to afford a new one.  If you’re one of these people, and especially one that has bad credit, a larger down payment can really go a long way in helping easing the pain of a car purchase.

People with challenged credit can find that a large down payment can help with the buying process.  Edmunds spoke with a sales manager at a dealership who had this to say about people using their tax refund as down payment.  “A $3,000 (the average amount of a refund) down payment does a number of things to help a customer with challenged credit.  First, it shows the lender how serious the buyer is about taking on a loan.  It also reduces the likelihood of the buyer being upside-down during the life of the loan.”  He also adds that having a smaller loan amount leads to smaller payments and leads to less of a burden on the monthly payments someone has to make.

Be mindful of using your tax refund in this method.  It can really go a long way in helping to deal with the necessity of purchasing a new or used vehicle.  If you have your tax refund and need help in getting an auto loan, click here to go to our application page on Approved Loan Store’s website.  Fill it out and we’ll contact you so we can get the process started.