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.

There will be an F1 race in Austin, Texas on June 17, 2012. The race will be exactly one week after the GP event in Montreal and will round out a North American leg of the tour. This race marks an expansion of the season to 21 races. That is, if the Turks can get plans finalized for the race in their country.

This will mark the first Grand Prix race in the U.S. since the Indy run in 2007. Let’s hope that this marks a trend to have more races in the States.

Ally Financial(formerly GMAC)
Toyota Motor Credit Corp.
Chase Auto Finance
Ford Motor Credit Co.
Wells Fargo Dealer Services

Ally held over $74 billion in its portfolio and this years is shaping up to rally the company even further. Healthy finance companies has to spell a healthier economy, which in turn makes 0 down car loans much easier to come buy.
 

Mortgages provide the majority of working capital for a bank. The problem is that borrowers are still defaulting on mortgages. They are keeping their car loan payments current and letting their homes be repossessed. Banks are still requiring higher credit scores for home loans even as fewer people are seeking those loans.

The tale of two economies has many experts fearing a double-dip recession that could further cripple growth in critical areas like manufacturing, retail, and real estate. America may not be in the clear yet.

1. The Acura TL can be leased for $2,999 down and $399 per month for 36 months.
2. The TSX is available on a 36 month lease at $359 a month with $2,499 down.
3. Grab yourself a ZDX for $0 down on a 36 month lease that only has 35 payments of $590 or you can lease one for 36 months at $520 a month with $2,999 down.
4. The MDX is rolling off the lots for zero down on a 36 month lease for $560 per or there is a 36 month lease at $499 with $2,999 down.
5. The RDX is being offered on a 36 month lease with zero down and $460 per month.

Acura is continuing its commitment to recent college graduates by offering exclusive financing deals at 1.9% and 2.9%. Any one of these offers could boost Acura’s sales. Hopefully, the combination of them will make for a great sales month for the company.

GM and Chrysler are taking their test drive events to the public around the country. With GM’s Main Street in Motion, you can test drive any one of 70 models. Not just GM offerings, but you can comparison shop against Acura, Ford, and Honda, among others. Chrysler is taking their event to that bastion of American life…the shopping mall. They will bring several of their vehicles to be driven and are offering a $15 gift card at the end of each test drive.  This may be a prime opportunity to track down a zero down payment car loan or leasing offer.

It is hard to imagine peace and quiet while you drive a car for the first time. Just the sheer relaxation of not having a feature spewing salesperson in the car could get a few more cars moving off of the lots. These events are sure to be crowded, so plan carefully in order to take full advantage of the offer.

High gas prices were forcing a shortage of fuel sipping 4-cylinder cars. The earthquake in Japan shuttered several of the plants that produced those cars. Many of those plants will not begin producing cars again until sometime in June, then they have to be shipped to the States. Gas prices are only going to rise, so it looks like there is no end in sight this year.

The demand for fuel efficient cars will not be dropping and the supply will not be increasing for several months. Hopefully, these circumstances will not lead to another economic free for all like the one that led to the recent near depression. In any case, there are few automakers still offering zero down car loans this month; however, we can expect these deals to become slightly hard to come by if vehicle inventory keeps drying up.

Short-term interest rates are near 0%, so banks now can offer 3% or 4% financing on car loans, as well as zero down payment, according to Bankrate.com. Banks are more willing to lend money to buyers with subprime credit (FICO score below 680). Leasing has improved as resale values of used cars have increased.

Car sales are increasing steadily as banks are becoming more receptive. Leasing may become even more popular as residual values increase due to used car shortages that will hit the country this summer. Maybe, happy days are truly here again. 

• Ask a lot of questions. A person who is trying to lure you into a robbery will not have any answers or hesitate before answering each question. If you get a bad vibe from a caller, do not meet with them.
• Never go alone. The likelihood of an attack drops when numbers are on your side.
• Meet in public the first time. Too many witnesses should deter a criminal.
• Never doubt yourself. If a caller creeps you out, skip the meeting. Your gut could save your life.
• Tell the buyer that you will have to see a driver’s license before they can test drive your car. That may deter some criminals.

It only takes one person to destroy your feeling of security. It is your job to try to prevent that from happening. Follow these tips and you will be more apt to sell your car safely.  Remember:  if you sell your car on the private market, you can immediately turn that cash into a down payment — effectively giving yourself a no down payment deal.

Honda has been promoting a number of “sign and drive deals” in which you can get behind the wheel of new Honda with no down payment.  Unfortunately, this mainly applies to leasing deals – not auto loans.  As we discussed previously, zero down leases are nearly a requirement – putting money down on an auto lease is risky.  Nonetheless, we thought we would inform you of these deals.

Toyota, on the other hand, is offering true no down payment car loans on a number of vehicles, as well as 0% financing.  Additionally, they are offering $500 cash back on the ’11 Camry – money which can be turned around and used as a down payment.

Please keep in mind that manufacturer car deals are often regional in nature, meaning the deals we discuss here may or may not be available in your area. The best way to find zero down payment car loans is by applying online.