If you’re in the market for a new Ford vehicle, your tax refund can be extremely helpful. However, it’s important to carefully decide how to use it. Folsom Lake Ford is sharing how to decide if you should use yours as a down payment or save it for your monthly payments.
Making a Down Payment
Many experts recommend that you make a 20 percent down payment on a new vehicle. By making a large down payment, you’re reducing how much money you’ll need to borrow. This limits how much interest you’ll pay and can help you save overall.
Additional Down Payment Perks
Using your tax refund as a down payment can also have additional benefits. For starters, when lenders see that you’re making a down payment, you’re more likely to get more loan offers and better interest rates because you’re demonstrating your buying power. Plus, a smaller loan can have smaller monthly payments, which can make your new loan more manageable.
Saving for Monthly Payments
If you keep your tax refund for monthly payments, you can ensure you always have the funds for on-time payments, which could help improve your credit score. Plus, you can add that money to your savings, so you’ll have more flexibility on how you use it. You could even have extra money to apply towards your loan payments, which could help you pay your loan down faster.
Explore Our New Ford Models in Folsom, CA
No matter how you choose to use your tax refund, it can certainly come in handy when buying a new vehicle. We have a plethora of new Ford cars, trucks, and SUVs to consider. Visit Folsom Lake Ford to explore our inventory today!
