Tax season is here and it’s time to put that refund towards something special. If you’re in the market for a new or used car, why not use your tax return as a down payment? Doing so can help lower your overall costs of car ownership and make the purchase of your next vehicle easier on your wallet. Here are some reasons to consider using your tax refund when shopping for a car at Motor City Chrysler Windsor.

Lower Your Monthly Payment and Save Money on Interest

Using your tax return as a down payment will help reduce the amount of money you need to finance, which in turn can lead to a lower monthly payment. Not only does this give you more flexibility month-to-month, but it can also save you money in the long run by reducing interest payments over time.

Avoid Purchasing a Bad Car

We all want our cars to last as long as possible, but sometimes life happens and we find ourselves stuck with an unreliable vehicle. Using your tax return to make a substantial down payment gives you more power when car shopping because you’ll be able to purchase a higher quality vehicle than you may have been able to before. With its robust lineup of vehicles, Motor City Chrysler Windsor has plenty of great options that fit within every budget!

Make Your Refund Go Further with Motor City Chrysler Windsor

At Motor City Chrysler Windsor, we understand how important it is to get the most out of every dollar spent—especially when it comes to buying an automobile. That’s why our Credit Specialist Jen Farough is here to help! Jen specializes in Bankruptcy, Divorce, Proposals & Credit Challenged situations and is available for any questions or assistance throughout the process. If you already got your tax return back, then even better—you’re ahead of the game!

Tax season brings excitement and extra cash into our lives, so why not put that money towards something special? Using your tax refund as a down payment towards a new car can help lower costs and open up more options than ever before at Motor City Chrysler Windsor. With plenty of reliable vehicles at great prices and Jen Farough here to answer every question along the way, now is the perfect time to make that new car purchase with your 2022 tax refund!

Bankruptcy is often the direct result of divorce, job loss or illness. These unfortunate, and unavoidable life events can negatively impact your good credit by missing a few payments or needing to use more credit than you may have had to in the past, potentially racking up a higher debt ratio.

A Car Loan is one of the strongest forms of credit that can help you to improve and rebuild your credit rating. If you have had to file for bankruptcy for loan protection in the past, whether it’s due to any of these traumatic life events or not, we may be able to help you recover and repair your credit with a car loan.

When you have suffered from bad credit, establishing a new source of credit is important. Ironically, the only way you can start building your credit, is by obtaining new forms of credit. A car loan can help. One of the preferred methods of demonstrating good credit habits is with an approved car loan from a reputable lender.

If you still have active credit cards or loans, continue paying them on time. The same thing goes for accounts that aren’t reported to the credit bureaus. Paying existing credit payments on time and consistently gradually increases your good credit back up.

High outstanding debt can affect a credit score, keeping them low can improve your score. This can be applied to a car loan as well, ensuring your car loan fits with your current income and budget can help you rebuild your credit faster.

By having a mix of different credit products, such as a credit card, car loan and line of credit (just remember to keep the amount being borrowed to 35% or less), you will improve and rebuild your credit faster than by just one source of credit alone.

Call me to apply for your car loan after a bankruptcy today! #CarLoansJen 519-991-8006

Job Loss? How to Qualify for Loan Default

With proper planning, the loss of a job doesn’t mean you have to default on your car loan. Although you don’t want to find yourself in this situation, there may come a time where you require some relief after a short-term financial hardship. Your Lender is there to help you.

Here is how one can qualify for a loan deferment:

Communication:

First things first, reach out to your Lender.  Don’t leave your Lender in the dark; tell them like it is, have open communication regarding your financial situation. Give your Lender an advancement in the notice, waiting until the last minute will not increase your chances of deferring your loan. Most importantly, don’t skip your payment, as this will result in affecting your credit score. Above all, don’t avoid the situation.

If your current vehicle payment isn’t working out for you, look into other options regarding your payments. Perhaps restructure your loan, look into special relief programs available from both federal and provincial. This can be reviewed with your lender.

Remember, your Lender is there to help you.

Qualifying for a car payment deferral:

You, as the lendee is exercising your option within your loan agreement to request a car loan deferment. The criteria for qualifying for a payment deferral can vary from Lender to Lender.

Depending on the Lender, if you have a history of making your payments on time, your Lender will most likely provide you with the temporary relief of a loan extension.

However, you may need to provide paperwork regarding evidence, i.e. a severance letter or an email from your boss proving that you are, in fact, in need of an extra hand.

Whereas some lenders don’t require any paperwork, all they need is a simple notice in advance regarding your next month’s car payment.

Keep in mind; a car payment deferral will only provide temporary relief of your financial situation as it does not postpone your payment.

A payment deferral may be just what you need, providing you with temporary relief after a short-term financial hardship until you can get back on your feet. Keep in mind; your Lender is there to help you. If you require a new car loan or are looking for a great deal on a new or pre-owned vehicle in the coming months Motor City Chrysler is here to help.

How Can A Car Loan Help Rebuild My Credit?

Life events happen to all of us. Late payments, job loss, and high debt ratios can all affect your credit and ability to qualify for new loans or a mortgage. If you need to rebuild your credit and potentially even want to work towards qualifying for a larger purchase like a home, a car loan can help.

Excellent steps for rebuilding credit include:

Keep making payments on time

If you still have active credit cards or loans, continue paying them on time. The same thing goes for accounts that aren’t reported to the credit bureaus.

Keep balances low

High outstanding debt can affect a credit score, keeping them low can improve your score.

Pay off debt

The most effective way to improve your credit is paying down credit card debt rather than moving it around from one card to the next.

Use a mix of credit

By having a mix of different credit products, such as a credit card, car loan and line of credit (just remember to keep the amount being borrowed to 35% or less).

A Car Loan is one of the strongest forms of credit that can help your credit rating

Once your larger debts are paid down and you can afford the costs of owning a vehicle, consider a car loan.

Establishing a new source of credit is important when you have suffered from bad credit. Ironically, the only way you can start building your credit, is by obtaining new forms of credit. An  automotive loan is one of the strongest forms of credit that can help you greatly improve your credit rating. One of the preferred methods of demonstrating good credit habits is with an approved auto loan from a reputable lender or financial institution. However, beware of lenders that make bold promises to increase your credit score or build your credit.

Got a question? Give Jen Farough our Credit Specialist a call at 519-991-8006

#CarLoansJen

A sure way to prosperity is to save some of your disposable income over a long period of time, ultimately having a sizeable nest egg.

But along the way, there are mistakes that can derail the ultimate end goal.

1. Using credit for everyday purchases

Using your credit card for everyday purchases like gas or groceries can mean unnecessary interest fees if a balance is carried over time.

2. Not having enough insurance

Disability, car, home, life, and health insurance are all important to have as they help take care of big emergency expenses. Without them, you will have to pay out-of-pocket when emergencies happen.

3. Spending more than you earn

Just $25 per week spent on dining out costs you $1,300 per year, which could go toward an extra mortgage payment or a number of extra car payments. If you’re enduring financial hardship, avoiding this mistake really matters.

4. Not having a budget or tracking spending

Create a budget for monthly income and expenses and track spending. Tracking spending can help to reduce unnecessary frivolous spending.

5. Getting into a too-big mortgage

A home is the largest purchase you will ever make, be sure to work with a professional realtor and mortgage professional to ensure that your budget for the down payment and overall price point fits your monthly budget. Banks may offer large loans on homes, but do your own calculations and look at your monthly budget closely before closing on that giant mortgage.

6. Buying a car beyond your means

Everyone has a dream car, but do you really need that expensive one that stretches your monthly spending unrealistically? Don’t buy a car to impress others or to ‘keep up with the joneses’, buy one that fits within your monthly budget.

7. Never-ending payments — check-in on recurring monthly memberships or payments

Things like cable, or movie and streaming subscriptions, your mobile phone, music services or gym memberships can force you to pay on an ongoing term. When money is tight, or you just want to save more, creating a leaner lifestyle can go a long way to fattening your savings and cushioning yourself from financial hardship.

8. Not having a financial planner

A financial planner will help you take that money you are saving and make the most of it – providing advice and help along the way. When the markets are slow or volatile, they’re there to help you make decisions about whether or not to move your investments around or not. Just be sure to choose someone who is accredited in Canada to be a financial advisor. Look for the CFP (Certified Financial Planner) designation behind their name, and research the firm they work for to make sure they’re reputable before placing any of your hard-earned savings in their hands.

9. Don’t forget about retirement

It’s great to focus and pay attention to your kids and saving for their education is important, however, retirement is also a big factor and you don’t want to put that off until later. Make sure you invest your money on your retirement as early as you can, as compound interest grows significantly the more time it has to earn.

10. Don’t blow it all on the wedding or first child

A one-time large expense like a Wedding can blow a budget or deter savings quickly. Plan a manageable budget that fits within your existing expenses for that big event and stick to it.

Spending too much on unnecessary products or services on the baby my blow not only the current spending plan but impact the time that either mom or dad is on maternity/paternity leave from work meaning less income is coming in already.

Avoiding these mistakes can lead to a healthy nest egg and personal wealth over the years.