With such an old-fashioned car park that we are in the top positions in the European Union rankings and with an unwavering desire to pay car taxes for very old cars, can Romania still benefit from State aid to improve the fleet of cars? The car tax is as you wonder ifn 25 and how it works. Many of those who paid the car tax tried to return it to the court, as provided for in the legal procedure.
Others, from convenience, waited to recover it by administrative means, but only the time for receiving the money back was limited, and many of these people woke up in the situation of showing overdue debts to the administrative bodies, which which has led to difficulties in recovering money. And in the case of other people, when it came to recovering a car tax, having purchased Euro 4 and Euro 5 pollution cars made the amount they had to recover so small that they did not were interested in opting for a refund.
What were the reasons why you had to opt for car tax refund?
Given that the deadline for the refund of the car tax was 31 August 2018, those who managed to recover the toll on the money paid for the purchased cars were able to turn to using this money in a more useful way.
- Using the money to return the car tax to pay the advance for a new car – is one of the best ways to use the money you get back for the car tax. This way you can get a loan for a new car and if you had to recover an important sum, using it as a substantial advance payment will allow you to demonstrate to the lender that you have significant “advantages”. This can help you get approval for a new car loan and benefit from a lower loan rate, making it more comfortable for your budget. Making a big payout also reduces the probability of being in unpleasant financial situations during the loan, which would mean you owe more than the value of the vehicle when its value starts to depreciate. If the auto tax refund is higher than the average, then you can make more money to advance for your upcoming car and reduce the loan rate. If the amount of the refunded car tax is lower than the average, you still can afford a new car, but you will pay some higher rates. Depending on your availability, you can choose to keep your car tax refunded in order to make the loan advance, or you can use it to make a higher payment later, to minimize your monthly car loan payment.
- Using the amount you received as a toll tax to buy a second-hand car, but a newer model – if the amount you had to recover was not very high (although you were entitled to interest to keep it for too long) and you can not afford to apply for a car loan, then you can think of buying a newer model of second-hand car. Of course, it would have been ideal to have saved some money so far, and with the amount of the recovered tax you can use it as a difference to pay for a new car, but this is also a handy solution. It opts for an Euro 5 car to avoid paying large car taxes but also to have a car that can be used for a longer period of time. Finding a good car, used for an average amount of less than 100,000 kilometers, could be a difficult but not impossible operation. It analyzes the market and the cars available and waits until such a vehicle is available. Especially because you have the necessary money and you have time to save even more. Considering the potential repair costs for some used cars, it is advisable to combine money from vehicle tax collection with other savings (from savings) and buy a second-hand car as new as possible. You may be able to afford to buy an almost nine car while taking advantage of the fact that someone else wants to give up a new depreciation of the car or needs urgent money.
- Using the toll collection money to rent a new car – leasing can help you get a new car with a lower monthly payment and the opportunity to purchase the car after two or three years. While a leasing contract can attract a person who appreciates low monthly payments, buying a car may be the preferred option for the buyer who wants to own a car beyond the rental period.
- Uses money from auto tax refund to reduce the cost of a contracted loan (of any kind) – reimbursement of an existing credit from the money you earn from this tax will lead to your debt being released. Even if you can not repay the entire loan, making a supplementary payment of the principal balance should help to repay the loan more quickly than initially planned. Another option is to refinance your current auto loan if the loan has a high interest rate. Reimbursement of the tax could be used to reduce the principal balance and eventually to get a better interest rate at the lower balance.
- Buying better car insurance – this is the best time to take into account your full insurance needs and to use part of the restitution tax to improve your existing coverage. Improving insurance can be helpful to more effectively cover various possible accidents and incidents.
Whatever the nature of how to use the money you get from your car tax, it’s important to give your money the best destination.