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How to use your tax refund to buy a new car

Are you lucky enough to be getting a tax refund this year? If so, you might want to spend that money on a new car.

Get tips here on how to spend your tax refund on a car.

Use the refund as a down payment for a new car: Have you had your eye on a new car for a while? Did you hesitate to buy it because the monthly payments would have been too steep? Or your credit wasn't good enough to qualify for a loan? Putting down a large sum of money - like your tax refund - can help solve both of those issues. Putting down a larger sum of money will help lower your monthly payments. It will also help customers who have bad credit, as it will lessen the amount of money of the loan, according to Edmunds.com.

Lease a new car: If you are looking to lease a new car, you can use your tax refund as the down payment. Most leases require some money down, but increasing the amount paid up front can also help lower your monthly payment for the length of the lease.

Upgrade your current car: If you aren't ready to buy a new car, then consider spending your tax refund upgrading your current car. Getting new tires, getting a tune up, getting new lights, repairing any damage to your car or installing a new audio system will make your car feel like new.

Pay off an existing car loan: If you are still paying off the car you are currently driving, consider using your tax refund to pay off the loan, or lower the existing balance. This will save you money in the long run as you will be paying less interest on the loan.


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