Maximize Your Tax Refund: How to Use It for a Volkswagen Finance Down Payment

With tax season upon us, that often means tax refunds are on the way. Your tax refund can go a long way when you’re purchasing a new vehicle. Our Volkswagen finance experts at North Penn Volkswagen are addressing how a tax refund can help.

Making a Down Payment

For many car buyers, a tax refund wouldn’t be enough to purchase a new vehicle. However, it can serve as a sizable down payment. If possible, you want to aim to make a down payment of at least 20 percent on a new vehicle purchase or at least 10 percent on a pre-owned model.

How It Helps

A down payment can be a valuable asset when you’re trying to secure automotive financing. For starters, many lenders are attracted to buyers making a down payment because it demonstrates your buying power. This can help you get more offers and maybe even better rates. Plus, by making a down payment, that leaves you with less to finance, which can help you save money overall.

Extra Benefits

Every auto loan includes interest, which is a direct fee that you owe to your lender. This cost is calculated depending on your total investment. So, if you’re financing a smaller amount, you’ll owe less interest, which can save you hundreds or even thousands of dollars. Plus, by financing a smaller amount, you’ll also have a shorter loan term and pay off your loan sooner.

Get Pre-Approved for Volkswagen Finance in Colmar, PA

You can stretch your tax dollars further with a new Volkswagen vehicle. We encourage you to stop by North Penn Volkswagen to speak with our finance experts and browse our inventory. We’d love to help you upgrade to a new Volkswagen vehicle today!