Everyone has goals and dreams of what they want out of life, whether it’s your dream house, car, job or relationship! Why not make these dreams a reality and plan for the future? If you’ve got your dream car in mind but not sure how to save up for it, companies like Refused Car Finance often recommend the best ways to save up for your dream car and also general tips on how to save more money.
1. Set your budget and your end target
When you are thinking about saving money for a big expense, like buying a car, it’s smart to set a goal and create a budget first. Figure out the total amount you need to save, and then plan how much you can put aside each month to reach that goal. And it is not just about the car itself. There are other additional costs to consider too, like car insurance, registration, installing optional car accessories, and sometimes even upgrading and modifying the Garage Door Colours, from Bulldog Garage Doors if you want to. Keeping these things in mind helps you prepare for all the expenses that come with your big purchase.
Therefore it is important to have a look at all your monthly incomings and outgoings, set a little bit of money aside for the social aspects of your life, and then see how much is left over to put away into savings. If you know you can do without some outgoings, maybe you’ve stopped using your Netflix account or paid for a gym membership that you never use, it’s a good idea to cancel any outgoings that you could do without. This way, you can put more into your savings each month.
2. Set up a savings account
If saving money isn’t your strong suit, opening a savings account is a smart move to start saving up for your new car. But which savings account you choose depends on what works best for you. Are you confident you won’t touch your savings if they’re easy to access? Or do you need something where you can’t dip into your savings until a certain time? Maybe you can afford to put the same amount in each month with a fixed-term deposit. Or perhaps you want the flexibility to add money whenever you can. Before you make a decision, do some research and figure out which type of account fits your needs best! Also, it’s a good idea to know what car you’re aiming for and how much it costs. You can check out sites like www.autoeasy.com to find out the price, and then you can start saving in your account accordingly.
3. Explore different ways to buy
Buying a car with cash is really beneficial. The main advantages of buying with cash is that you aren’t tied into monthly payments, can get your car with no deposit and can avoid interest charges. However, if you want your car quite quickly, there are other ways in which you can get a car! Have you thought about buying a car through a car finance provider? If you buy a car through finance, it will be based on your credit score. It’s easy to get a car if you have good credit but it’s not impossible to get bad credit car finance either! Other options include personal loans, using a credit card and HP/PCP agreements. Have a look into all your options before you commit to buy.
4. Be realistic
Your dream car doesn’t have to be a dream anymore. Make your dream a reality but be realistic! You may want to check out online dealers like https://www.americanlisted.com/texas_43/cars_2/lowrider+cars/ to find some vintage car deals if you’ve been dreaming of owning a classic. It won’t be easy and you have to be patient but as long as you can realistically save up for your next car, why can’t you get the car you want? Obviously, if the next car you want is a 100,000 Porsche and you can only afford to save 100 a month, it may not be the most realistic option for you. Take into account everything we have covered in this post so far and also factor in the cost of running a car.
So, you’ve spent all your savings on your perfect car but can you actually afford to keep up with regular payments? You will need to think about how much you will spend on diesel/petrol, car tax, maintenance costs such as MOT or services, insurance, and any unexpected repair costs. Also, consider the possibility of a sudden breakdown. What if the car unexpectedly breaks down one fine evening, even when everything was in proper working condition? Though situations like this are rare, they do exist. Sure, you will only need to call an experienced mechanic with access to proper engine rebuild kits to tend to the situation. But you will only be able to take this step when you have enough funds in your bank account. In this regard, it would be beneficial financially for you to set aside some money for such unexpected emergencies.
5. Choose your car wisely
It’s good to have your dream in mind when buying your next car but some cars can cost you more in the long run. If you spend ages saving up for a car but it doesn’t turn out to be all that cheap, you will more than likely be annoyed! Research has shown that due to car depreciation, a car that is a couple of years older is actually better value for money. Simply put, car depreciation is the value that you buy a car for and the value that you sell it for when you’re done. Factors that affect car depreciation costs include fuel efficiency, mileage and general condition of the car. You avoid car depreciation by choosing a car that’s in demand and has low running costs, keep the mileage low, avoid adding any modifications and buying a nearly new or used car to avoid depreciation.