6 Tips on Saving for a New Car

person taking money from wallet

Today, having a car is as important as having a house. We need it for work, driving our children to school, and everything else in between.

Vehicles can cost a lot of money and sometimes, our finances are just enough to take care of our daily needs, with none left over to buy a car. But, there are plenty of ways you can get your hands on a set of wheels. To help you get started, here are a few tips on saving up for a car:

Be Determined

First, you need to set your mind. Ask yourself why you need a new car in the first place: is your old one ready to retire? Or maybe you need a bigger vehicle now that your family is growing? Knowing why you need a car is important in helping you weigh in if it’s worth saving up for it or if you can put it off till later.

If you are sure that you need the car instead of wanting it, there are a variety of ways to keep yourself motivated when it comes to saving. A clever way to do it is to put a picture of your dream car in your wallet, so you have to look at it every time you want to spend money. Doing this allows you to reevaluate your decision and decide if you’d rather have that now or a car later.

Pick a Realistic Vehicle

Pick a realistic vehicle

Once you’re sure you need a new car, it is now time to put a price tag on it. Remember, some vehicles cost more than others.

Choose a vehicle that fits your needs and is within your budget. It is always better to own a sensible car that you can pay for, instead of an expensive one that will put you in debt.

Consider Car-Related Expenses

car related expenses

Car payments are a commitment, and so is maintenance. A lot of times, people prepare themselves for a big purchase, but never for the costs that come with it. Vehicles need petrol, tune-ups, repairs, and spare parts every now and then.

To lessen the expenses,  learn how you can do some minor fixes from your home and research on which cars can offer you the best mileage per gallon of fuel. This way, you can make fewer trips to the mechanic for repairs and get the most out of each refill of petrol.

Save up

save up

Now that you’ve decided on a vehicle and are set on owning it sometime soon, it is now time to put away a portion of your money every payday. There are a variety of ways to do this, including a 52-week money challenge, which can help you save up to $1300 by the 52nd week.

Another way is to set up a savings account and automate a transfer from your checking account so you can have a set amount deposit. You can use your bank’s website or a third party app to make the deposits for you regularly and automatically without affecting your other expenses.

Make Extra Money

make extra money

In line with saving money, you can find a side gig that can help you earn some extra cash. You can then dedicate all that extra income to your savings. You can also use your current vehicle to earn money before you choose to upgrade.

Sell Your Old Car

sell your car

If you’re going for an upgrade, you can consider selling off your old vehicle and put the funds from that towards your new car. To do this, you will need to have it appraised. If you took good care of your vehicle inside and out, you wouldn’t have much trouble selling it as it is.

Choosing to sell it yourself will earn you more money. However, it might take some time to find a buyer that will agree to pay you for the asking price.

Your new car is just around the corner. All you need is to prepare yourself for the challenges that are coming your way. Another way to achieve your dream car is to save up for a downpayment and get car finance so you can get your new ride faster. Talk to us here at Alpha Car Finance and we can help you get started.