Tax season is a time for making smart financial moves, and at Peruzzi Buick GMC, our friendly team believes that your tax refund check can be used to drive away from our showroom in the Buick car of your dreams. Using your refund as an aid for a Buick financing down payment not only helps with affordability, it also provides long-term savings and financial flexibility.
Benefits of Making a Larger Down Payment
The immediate benefit of making a larger down payment that’s bolstered by your tax refund is reduced monthly payments. However, there are several other advantages you’ll want to consider, too.
Reduced Total Interest Paid
The less you finance overall, the less interest accrues over the life of your loan. Because of this, putting your tax refund toward a down payment can contribute to a large amount of savings over time.
Builds Equity Faster
You’ll build equity in your Buick vehicle more quickly when you put down more upfront. This allows you to be in a stronger financial position in the future.
Improved Loan-to-Value Ratio
A larger down payment improves your loan-to-value ratio, which is the loan amount compared to the vehicle’s value. This signals lower risk to lenders, often leading to lower interest rates.
Shorter Loan Term
Finally, with a larger down payment, you’ll have extra flexibility when it comes to your loan terms. For example, you may be able to choose a shorter loan term, which allows you to pay off your Buick car faster and become debt-free sooner.
Start the Buick Financing Journey
The finance professionals at Peruzzi Buick GMC are ready to help you make the most of your tax refund. Visit us today to get started in turning your tax refund into a new or pre-owned Buick car.
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