A lot of older teens and young adults find themselves without a car to drive to school, college/university, work, or even just around the city to run errands. If you’re in need of a car, whether it’s new or used, you can employ a few smart money saving tactics that will get you behind the wheel and on the road in your own car in no time.
1. Find the type car you want to buy.
Before you can know how much money you’re going to need to save up for a car, you have to decide on a few things. Figure out if you want a new or used car, and what kind of car you want based on what you’ll primarily use it for, as that will also affect price. You can either decide on the exact make and model right away or leave those specifics for later, as you may change your mind. However, you should choose the type by asking yourself:
– Do you want an eco-friendly car, something more compact, or larger like an SUV?
– Do you want a car that’s fast with a big engine, or gets great gas mileage?
– What are some features you want and will enjoy, and how important are safety features?
2. Choose how you want to pay for your car.
There are several different ways to purchase a car like buying it in full, leasing it, or financing it. Before you know how much money you’ll need to save up, you should decide what kind payment method suits you best.
3. Decide how much you want to spend.
Now that you know what type of car you want it’s time to calculate how much you’ll feel comfortable spending on your vehicle; whether you’re making monthly payments, or trying to save up to buy your car in one lump sum.
4. Open a savings account.
If you don’t already have a savings account now is a great time to open one up as you can put money in it and not worry about spending it.
Tell your bank what you’re saving up for and they can help you find the best type of savings account for your needs.
5. Get a piggy bank.
Sometimes the old methods are the best. Having a savings account is great for paychecks, but you need somewhere to put your extra change as well.
You’d be surprised how much money you can save up with spare change. Whenever you use cash, take the change and put it in your change jar.
6. Allocate a set amount of your paycheck each month to go to savings.
Now that you know how much you need to be saving, make it easy on yourself and put a percentage of each paycheck directly into your savings.
If you have direct deposit this can be automated by telling your payroll department to put a portion of your paycheck into your savings instead of putting it all into your checking account.
7. Look around online.
This part is a bit less about actually saving for a car and more about helping you save. Even if you know what kind of car you want, and how much you need to save, it’s nice to keep tabs on deals from different dealerships and see what your best financing options are.
8. Check out the car in person.
Actually go look at the vehicle you’re saving up for. Seeing it in person will make it more tangible and give you the motivation to stay diligent in your saving.
Take it for a test drive. Actually experience what it feels like to drive the car. This will not only help you to know if this is truly the car for you, but it will also help you to keep from unnecessary spending. When you’re tempted to buy that new outfit, or go out to eat, remember how you felt driving your car.
9. Use the dealerships to your advantage.
Find several dealers around town who offer the make and model you’re looking for and get a quote. Be honest with them that you’re shopping around and that you’ve have been talking to other dealers to get the best price. Dealers want to sell their cars and if they know there’s competition you can find a great quote.
10. Don’t let a lower quote affect your savings plan.
You might find a cheaper deal on the car you want, but that doesn’t mean you should save less. Any extra money you save will ensure everything goes smoothly.
11. Sell what you don’t need or use anymore.
Saving up for a car doesn’t just have to come from only spending less money.
Hold a yard or garage sale to sell old clothes, items, and furniture you don’t need or use anymore.
You can also sell old electronics on OLX for some quick cash.
12. Pick up more shifts at work.
Tell your manager that you’re saving up for a car and would like to get more hours. Or, offer to cover any shifts that your coworkers have conflicts with.
13. Get another job.
If you have a job that pays you a salary, or you don’t get enough hours at your current job, consider getting a second job. This won’t be the most fun way to spend your time, but it will make saving for a car easier and faster, and you’ll thank yourself for all of your hard work when you’re behind the wheel of your new car.