How To Use Your W2 As A Down Payment On Auto Loan
This is the time of the year when companies are issuing 1099′s and W2′s and the average American anticipates a decent tax refund from which they could pay bills, purchase a vehicle, put a down payment on a mortgage loan, or just take care of the necessary things in life.
Whether you live in York, Nebraska – Detroit, Michigan – Baton Rouge, Louisiana – Seattle, Washington, north, south, east or west of the country the financial set backs are the same and most Americans look forward with earnest anticipation for a decent amount of money from filing their W2 tax statement this year. There are signs that the economy is improving – something to sigh about.
To use your W2 as a down payment for an auto loan, you must first ensure that the car dealership or salesman is trustworthy.
Between January 1st and April 15th, there are many car dealers who would partner with tax accountant or tax refund firms to help people file their taxes with the intent of using all or a partial amount of their refund as deposit.
Here are some advice to consider:
- If you do not yet have a W2, then a pay stub can be used. You will have to file a Leave and Earning Statements (LES) with the IRS.
- Call the IRS Office (1-800-829-1040) if you have questions
- You should have a signed document indicating how much the dealership is allowed to remove as deposit
- Check your credit score to ensure you receive a good interest rate on the loan
- Get a second opinion on your tax return. H&R block started doing form 1040′s for free. AARP does free tax returns for low income tax payers in every city.
- Do not let the dealership select the car for you. Choose a vehicle that is affordable. A certified used vehicle would be best
- Take a loan with a term no longer than 48 months. The longer the term the higher the total loan amount.
Remember, if you maximize your tax return, then you can place a larger amount as a down payment. The larger your down payment, the less your monthly payments, the quicker you pay for the loan, the higher your FICO score goes and the possibility of you falling into an upside down situation is reduce
Some Dealers that accept W2 as down payment
Durrett Motor Company
5520 South Shaver
Houston, TX 77034
Phone: 713-941-5616
Patty Peck Honda
pattypeckhonda.com
Ridgeland, MS
Main Office
Phone: (888) 902-1166
Fax: (601) 707-0222
JD BYRIDER
Myra Borshoff Cook, APR
Borshoff
47 S. Pennsylvania St., Ste. 500
Indianapolis, IN 46204
317-631-6400
RK Chevrolet
At RK Chevrolet, you can use your W-2 for a down payment on a vehicle! RK can arrange a rapid refund on your taxes
2661 Virginia Beach Boulevard
Virginia Beach, Virginia 23452
757-486-2222
Family Auto Centers
At Family Auto Centers in Raleigh you can bring in your W-2 and drive home in a car
2919 Capital Blvd
Raleigh, NC 27604
RALEIGH – Glenwood Ave (919) 571-5081
CNAC
Take your last pay stub from 2011, or your W-2, and let a CNAC associate calculate your 2011 Tax Refund
855-CNAC-NOW.(855-262-2669)
