7 Practical Ways to Save Money for a Car - Newslibre

7 Practical Ways to Save Money for a Car

Although it’s technically possible to walk anywhere you need to go, that doesn’t mean it’s practical. If you want to cut down your commute times, buying a car for personal use is one of your best options.

Of course, deciding to buy a car and actually having the money to buy a car are two very different things. If you put in the time and effort, though, you will be able to achieve your goal of scoring a great new ride.

Here are a few practical tips to help you along the way.

1. Check Your Budget

If you don’t currently follow a budget, you’re likely wasting money without realizing it. Monthly subscription fees or daily expenses can add up quickly, especially when you’re saving up for a major purchase.

Take the time to make a budget and then track your spending to find areas where you can cut back. Before you know it, you’ll be able to save a nice chunk of change to use as a down payment.

2. Use Public Transportation

This tip is most applicable to current car owners. If you already own a car and want to cut down on ownership expenses, using public transportation is your best option. By using public transportation, you’ll be able to cut down on the gas, maintenance, and potentially insurance costs. While using public transportation is often less convenient, it is almost always more cost-effective.

3. Understand the Goal

Anytime you set a goal for yourself, it’s important to understand that goal before you begin working to achieve the goal. Saving for a car is no different. It’s vital to have a good grasp of auto loan financing so that you have an idea of the monthly payment you can expect.

In some cases, you may be able to arrange flexible financing ahead of time so that you don’t have to worry about rising interest rates while you’re working to save for a car.

4. Sell Your Current Car

Since you can only drive one car at a time, it makes sense to sell your current car in an effort to raise enough capital for a new car. If you’re willing to use public transportation, you can even sell your current car before you have a car to replace it.

Typically, selling your vehicle privately will yield the best return since you are not paying for a dealership’s overhead costs.

5. Help Your Money Grow

While you’re saving money for a car, you want to make your money work as hard as possible. One way to do this is to put the money in a savings account so that it can accrue interest while you work toward the big day.

Although most savings accounts have fairly low yields, a little interest earned is still better than nothing. To ensure that you are always saving, consider a savings account with automatic deposits so that the money goes to the savings account before you have a chance to spend it.

6. Earn Some Extra Money

The more money you can earn while saving, the sooner you can reach your savings goal. If you have time to take on a side job, you’ll be surprised at how quickly the extra money will add up. Even if you can only work an hour or two a week, it’s still a good idea to put your time to good use in pursuit of a goal. Plus, when you see your savings increase, you’ll be even more motivated to reach your goal.

7. Know What You’ll Take

Although it’s certainly nice to buy a brand new car with all the bells and whistles, this certainly isn’t the most cost-effective option. Trying to save enough money for an expensive car could lead to delayed gratification to the point that you give up on your goal.

By focusing on a more achievable goal by choosing a used car or a new car with fewer frills, you’ll be able to sustain your motivation long enough to see the process through to the end.

Closing Thoughts

In most communities, having a vehicle is almost essential if you want to maintain a solid job and live a normal life. Therefore, as you save for your vehicle, you should see it as more than simply saving money to buy a new piece of transportation equipment. Instead, see your efforts to save for a new car as an essential investment in your future.

 

Also, read: Pros and Cons of Installing a Turbocharger

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Author: Tracie Johnson

Tracie Johnson is a New Jersey native and an alum of Penn State University. She is passionate about writing, reading, and living a healthy lifestyle. She feels happiest when around a campfire surrounded by friends, family, and her Dachshund named Ruf.

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