Tax season is right around the corner. This can be a great time to buy a new vehicle. Our Mazda financing experts at Heritage Mazda Bel Air are sharing a few tips for car shopping during tax time.
Buying vs. Financing
If you’re expecting a large tax return, you may be tempted to buy a vehicle outright. Paying cash for a vehicle can be hugely beneficial, since you don’t have to apply for a loan and can avoid paying interest. However, it’s important to determine if you prefer to keep your savings — you may be making more money with it in savings, or, if an emergency happens, it could cost you more to take out a personal loan.
Making a Down Payment
Your refund could also be the large down payment that you need. Generally, experts recommend that you make a down payment of at least 20 percent when purchasing a vehicle. This helps you avoid having negative equity in your vehicle and it also reduces how much you have to finance, which means you’ll spend less in interest overall.
Consider Additional Expenses
Once that big deposit hits your bank account, it can be tempting to go out and buy your dream car, but you want to make sure that you plan for the additional expenses. A more expensive car often means higher registration and insurance costs. It’s helpful to get an estimate of your payments and expenses, to know how much of your refund you should spend upfront.
Apply for MAZDA Financing in Fallston, MD
Our financial experts at Heritage Mazda Bel Air are happy to review your financing options with you. We would love to help you upgrade to your perfect car with terms that work for you. Stop in to get started today!
