With more and more people getting stimulus checks from the government due to the COVID-19 Pandemic, more and more people are finding themselves with extra cash. The four figure check can be used to pay for important things, but if you are all caught up on your bills, then you might want to use that check to make some progress on buying your new vehicle.
You have several options when it comes to putting your stimulus check to work with a new vehicle, and here are some of the ways you can put that excess money to good use.
With an average of 1,400 per check, if not a bit more, then you might be able to partially cover a down payment on a new car. You can also cover a payment on a used car as well, which makes a bit more financial sense. Used cars are less expensive and also will stop you from losing all your money on depreciation.
Used cars will save you money, and the stimulus check will help you start to cover the down payment.
However, if you decide that you have overcome the craziness of the year that is 2020 and want to make sure that you have a brand new car that will be tribute to all the craziness you have dealt with, the stimulus check can be a nice down payment on a new car.
Let’s face it, new cars are expensive, and while a stimulus check isn’t going to cover up everything, it can supplement your existing down payment. However, several car dealerships and manufacturers have special deals on their new cars, and you can take advantage of these deals to get cashback and have less financing.
Another way to get the most benefits from your stimulus check is to have it remove some of the payment on your car loan. You can either pay off the loan early or take a massive chunk out of it, and once you talk to your lender you can either use all or part of your stimulus check to cover your loan.
Even throwing a few hundred dollars from your stimulus check towards the loan is enough to see some relief after a few months have gone by.
Of course, don’t go blowing your stimulus checks on a new car that you can barely afford anyway. If you have a reasonable car and need to use the money for other things, then you should absolutely do so. However, if you want to put the check towards a brand new car and start paying off down payments, then that’s a good use of your money.
Make sure to keep the length of car payments in mind, because if you have a stimulus check that you are putting towards the car payment, you don’t want to be left high and dry when the checks stop coming and you still need to make your payments.