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How To Save Money For A Car

 

 

How to Save Money for a Car: The Top Tips to Know

 

How to Save Money for a Car: The Top Tips to Know

 

Are you trying to learn how to save money for a car? If yes, you should check out some of our best tips by clicking right here.

 

Wondering how to save money for a car?

 

It can seem impossible to save enough for a new vehicle purchase. But getting serious about budgeting and saving for a car can get you a new car faster.

 

You need a specific goal to help guide your savings efforts. Then, you can look at your current budget to see how you can make those savings goals work.

 

Try these tips to meet your car savings goals quickly.

 

Set Your Savings Goal

 

Having a specific dollar amount for your car savings goal helps you budget for it and know when you've had success. 

 

First, decide what type of car you want. Pre-owned vehicles are often cheaper if you're on a budget.

 

One benefit of new vehicles is they often come with more offers and incentives that can lower the price.

 

The make and model you want is also a big factor in the total cost of the vehicle.

 

Once you know what type of car you want and the average amount it will cost, decide how much of a down payment you want to make. The more you can put down, the less your monthly payments will be.

 

Using a down payment calculator helps you decide how much you want to save for your down payment. You can also get an idea of your monthly payments when you finance the rest of the vehicle.

 

Create a Separate Savings Account

 

To get serious about your car savings goals, set up a separate savings account used only for your car money.

 

This lets you quickly check the balance, so you can track your progress toward your car savings goals.

 

It also ensures you don't spend your car savings on other things. It's tempting to borrow a little money from savings goals to satisfy a splurge. But that slows down your progress toward a new car.

 

Factor in Your Current Car's Value

 

If you already own a car and plan to sell it or trade it in, consider its value when saving for a car. You can put that money toward the purchase of the new vehicle.

 

Online car value estimators give you an idea of how much you'll get from your vehicle. Input as many specifics about your car and its condition to get an accurate estimate.

 

Consider the differences between selling and trading in your vehicle. Trading in is easier, but you'll likely get less money for your vehicle than if you sell it yourself.

 

Add Car Savings to Your Budget

 

Once you have your vehicle savings goals set, add the savings as an item in your budget. This helps you work it into your normal expenses to increase the chances of actually reaching your goals faster.

 

Look at your overall budget to see how much you can devote to your car savings.

 

Evaluate your car savings goal and your planned timeline for purchasing the vehicle. This helps you determine how much you need to save each pay period.

 

Say you want to save $6,000 and you want to buy in 12 months. You'll need to save $500 per month for your vehicle. 

 

If your budget allows you to put more than $500 in your car savings, bump up the amount to get to your goal faster.

 

Change Your Spending Habits

What happens if your budget doesn't have enough room to accommodate your car savings goals? Or maybe your goal is to buy in a year, but you're really hoping to buy sooner.

 

Cutting what you spend on other things gives you more cash to apply to your car savings goals.

 

Analyze your budget critically to see if there are things that you can cut at least temporarily. Maybe, for now, you'll work out at home so you can cancel your gym membership. That monthly payment can go directly to your car savings account instead.

 

You can apply the same idea to many optional spending areas in your budget. This includes things such as subscriptions, memberships, cable, streaming services, and lawn care services.

 

You can also reduce your spending in areas that you can't cut completely. You still need to eat, so you'll have a grocery bill. But planning less expensive meals and being careful at the grocery store can reduce your spending.

 

If you make a lot of splurge purchases, force yourself into a 24-hour waiting period. Instead of buying right away, hold off at least 24 hours to see if the purchase still seems like a good idea.

 

When you want to make an unplanned purchase, ask yourself if the thing you're buying is more important than your new vehicle. This can be a good reminder of why you're saving for now.

 

Increase Your Income

 

When you need a vehicle fast, temporarily increasing your income can get you to your goals faster.

 

That might mean taking on a second job for now until you save enough money for the car purchase. Working more hours can be a hassle, but remind yourself that it's a temporary sacrifice to get into a new vehicle faster.

 

Another possibility is working overtime at your current job if that's an option. This allows you to have bigger paychecks temporarily without finding a new job.

 

Use Extra Money for Your Car Savings

 

Do you have extra cash coming into your bank account? Maybe you get a cash birthday gift from your parents. Bonuses from work, tax refunds, and rebates on large purchases are other examples of extra cash you didn't figure into your budget.

 

Instead of spending that money on random stuff, put it right into your car savings bank account. You won't miss it because it's not part of your regular income.

 

Those extra cash deposits can help your car savings account balance jump significantly. 

 

Learn How to Save Money for a Car Now

 

Figuring out how to save money for a car isn't difficult, but it takes intentional effort to put money aside for the purchase. With a car savings plan, you can reach your goals and get the ride you want faster.

 

Are you ready to make an auto purchase? Fill out our finance application and check out our selection of vehicles to get started.