Put Your Tax Refund Toward a New Car in Akron, OH

It's Tax Refund Season - Why Not Invest It Toward Car Payments?

It's that time of the year when we get our yearly bonus from the government. Remember that it's not just free money, but your hard-earned cash, so you should spend it where it will do the most good. At Great Lakes Honda, we wanted to offer some options that we think make the most sense to our Akron community.

Use It As a Down Payment

New Honda and used car purchases are one of the top ways people spend their tax refund, and for good reason. Putting down a larger down payment on a Honda CR-V or Honda Civic benefits you in several ways. First, it means your monthly payments will be lower, or you can afford to pay off your car quicker. Either way, you'll end up spending less since any money you put toward the down payment won't be gathering interest on the loan.

A higher down payment also shows lenders that you're serious about buying the Honda Accord and paying it off. They'll be more comfortable giving you a better deal the more they think you'll be able to pay it back. The higher down payment shows you can afford it while also lowering the monthly payments, which also makes it more likely you'll be able to afford it.

Lower Your Payments

When you start a lease, just like a new car loan, you can provide a higher down payment to lower your lease payments on the  Honda Odyssey. If you decide you want to extend the lease, some contracts allow you to continue paying this lower number on a month-to-month basis, giving you some extra time with your vehicle.

If you're still paying off your current car loan, you can put your tax refund toward that in one of two ways. First, there's making extra payments. If the interest is good and you just want to pay off the loan as quickly as possible, this is the way to go. You could end up cutting down on your payments by up to six months every year if you use your tax refund for this each year.

The other way to pay off your current loan is by paying down the balance. This will reduce the amount of interest you pay over time, which means you'll end up paying less overall. This is probably the option you'd rather go with if the loan's interest isn't quite as good or if you're more interested in overall savings than short-term savings. Reach out to our Finance Center with any questions you may have!

Refinancing is Also an Option

Refinancing is probably what you'll want to use your tax refund on if your interest is particularly high, especially if you've improved your credit since getting the loan. You can use your tax refund to find and negotiate a better loan, as well as reduce the principal on the loan to lower your monthly payments even more.

Treat Your Car Right

Have you been neglecting much-needed service because you know it'll be pricy? Your tax refund is a fantastic way to pay for those new windshield wipers or get your tires rotated. Proper maintenance is one of the key ways you can actually reduce your automotive bills. If you don't take care of your car, it won't be able to take care of you, and you'll have to buy a new one sooner.

If none of these sound like something you need right now, then consider getting those parts and accessories that you skipped over when you first got the car. All-weather mats are terrific at catching dirt and salt so you don't have to worry about staining your car's floor. You could get a roof rack to hold a cartop carrier if you need some extra space. Whatever it is, your tax refund is an excellent way to pay for it.

Improve Your Life With the Tax Refund

Automotive payments are a great way to spend your tax refund because they're things that you'll make use of almost every day of your life. At Great Lakes Honda, we can help you find all the fantastic options that are available to you. You can visit us in Akron, Ohio or browse our inventory online to find something that fits you and your budget perfectly. Don't hesitate to reach out to us at Great Lakes Honda if you have any questions!