More and more people are using their tax refund money as a down payment on a new vehicle. And increasingly, automobile loan companies are marketing to this effect, with one Atlanta-based loan company recently encouraging its customers to, “Use your W-2s for your down payment!”

The question of whether or not this is a healthy practice, or whether the refund money would be better spent elsewhere, is a difficult one. The average tax refund amount received in 2011 was $2,913—nearly 3 thousand dollars. Could subprime loan customers use their refund money to qualify for a loan they wouldn’t otherwise qualify for, or at least to get lower interest rates on a loan for a new car?

The lending industry has been avoiding the subprime niche ever since the financial crisis peaked in 2008 as a result of subprime mortgage loans. Although those loans were in a different sector, the repercussions have been felt throughout the banking industry, and as a result it has been difficult for all but the most “prime” of customers to get a zero down auto loan, whether for a new or pre-owned vehicle.