There’s no better time for a new Mercedes-Benz SUV than during tax refund season. You’ll have even more vehicles available within your budget and more ways to obtain the car you’ve been dreaming about. Explore the best ways to use your tax refund toward your vehicle down payment when you visit Mercedes-Benz of Annapolis.
Raise Your Credit Score
The first benefit can be achieved before you visit our Mercedes-Benz dealership. A higher credit score leads to more favorable interest rates and loan term lengths. Paying down debt improves credit utilization and boosts your credit score. This, in turn, can reduce what you pay over the loan's lifetime.
Defray Ancillary Expenses
The vehicle’s cost isn’t the only thing influencing the amount you finance and ultimately pay. Should you choose to add accessories, protection plans, or GAP insurance, these are often folded into your financing, as are things like taxes and fees. Using your tax refund toward your purchase can help significantly here, too.
Use the 20/4/10 Rule
Setting a new vehicle budget can feel overwhelming. If you’ve read this far and are still unsure how much of a down payment to leave, we can simplify matters. Use the 20/4/10 rule. It recommends putting 20% down on the day of purchasing and paying the vehicle off within four years. It also recommends spending less than 10% of your monthly income on transportation costs. With this guideline, you can better set a budget, and make the most of your tax refund.
Find Your New Mercedes-Benz SUV in Annapolis, MD
Picking out the perfect new vehicle should be exciting. With help from Mercedes-Benz of Annapolis, you can focus on finding the car you like best, without worrying about financing. Explore smart ways to use your tax refund here at our dealership.
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