Tax season means tax refunds, and that might have you wondering what to do with this bonus income. At Brandfon Honda, there are a few options we think make terrific ways to spend your tax refund that will help you out in the long run.
Down payments are one of the most important determining factors when figuring out how much your monthly payments. Your credit may affect the interest on the loan, but what that interest is applied to can be reduced dramatically by having a higher down payment. If you get $2,500 on your refund and put it toward a new Honda HR-V or Honda Accord, that's $2,500 less that you'll have to pay back with interest. This means your monthly payments will be lower, or you can even pay it back faster.
Another benefit of a larger down payment is that it shows loaners that you're a serious buyer, and they'll be more likely to trust you with a car loan. The larger the down payment on that Honda Odyssey, the more you show them that you can afford this expense.
You can also use the tax refund for a larger drive-off payment on a Honda Clarity lease. Like with a new car, this will greatly lower the monthly payments you have. Plus you might be able to continue to pay this lower price if you extend the lease. Then you can drive your family around New Haven without worrying about how you'll afford a new lease.
If you're not looking for a new car just yet, you can look at any maintenance your car needs. Maybe the windshield wipers haven't been working as well as they used to in the Hamden storms, or maybe the battery needs to be replaced. Whatever it is, your tax refund is an excellent way to pay for any outstanding maintenance for your Honda.
Maybe you have a car that's treating you well, and you're on top of its maintenance. In that case, consider getting some upgrades to make your 2018 Honda Civic stand out from the crowd or even just make it easier to keep clean. All-weather floor mats are a fantastic option for this. You can also get a roof rack or trailer hitch on certain vehicles to make it easy to carry everything you need with you out of Milford. We have all your parts & accessories needs covered in Branford.
Still paying off your current car loan? You can put your tax refund toward paying that off to get that much closer to a car that you fully own. You can either pay off the balance, which will reduce the amount of interest paid over time, or you can make additional payments, which reduce the number of payments you need to make in the future. Connect with our expert financing team to learn more!
Alternatively, consider refinancing your loan if it has a high interest rate, especially if you've improved your credit score since you got the loan. You can use your tax refund to reduce the principal on the loan and get a better interest rate on the leftover.
If you need help figuring out what the best option is, give us a call and we can help you find the best Honda price tag you can slash. If you already have a new car in mind, schedule a test drive with it so you can see that it's worth spending your tax refund on. We'll be happy to show you all the fantastic Honda models we have to offer.
