Saving Money for a Car 7 Helpful Tips

Are you in the market for a new car but you’re not sure if you can afford one? Do you wonder if there’s an easy way to save money for a car?

More than 17 million people buy a car in the US every year. If you have a plan, you can buy one too!

Saving money for a car can be a challenge, but it’s possible. Here are several tips to help you achieve your goal.

1. Make a Plan to Buy a Car

In most cases, you’ll be saving for a down payment and financing the balance with a car loan. Look at your monthly income and list your monthly expenses. Calculate the difference.

This difference is how much you can save for a car downpayment. Once you’ve saved enough, you will use the monthly amount for car payments, insurance, maintenance, and operating costs, including gas.

2. How Much Do Cars Cost?

It’s essential to know how much money you need to buy a car. Visit several car lots to get an idea of what kinds of vehicles are available. Do some online research to find new cars for sale. Once you find the car you want, it will be an incentive to save.

3. Consider Leasing

If you don’t have time to save for a downpayment and need a car now, you might want to lease a car instead. Many lease agreements cover maintenance, but you’ll need to budget for the payment, insurance, and operating costs.

4. Saving Money for a Car Automatically

One of the best ways to save money is to make it automatic. Ask your employer to deduct a specific amount from every paycheck and deposit it into your savings account. You can set up an automatic transfer into your savings account on your own as well.

5. Separate Your Car Savings

If you’re planning on buying a car, it’s best to put your savings in a separate account. That way, you won’t spend the money on something else. Shop around to find the best rate on a high-interest savings account.

6. Get a Part-Time Job

A great money-saving tip is to get a side job working on the weekends or at night. Hand out flyers in your neighborhood offering to do yard work or odd jobs for cash. Be sure to put all of the money you earn into your car savings account.

7. Have a Virtual Garage Sale

Spend some time decluttering your home and collect any items that have value. Consider tools or artwork and things that you bought and never use. 

You can sell many items quickly online using one of the many marketplaces or platforms available. Be sure to take a quality image of your item and take the time to research before your set your price.

Infographic created by O’brien Toyota, a used car dealer

Follow Your Plan to Succeed

When you understand the tips you can use when saving money for a car, you’ll be able to meet your goal of buying one. Making a plan and following the steps is a sure way to succeed.

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