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Tips and Tricks on How to save up for a New Car

Whether you are just a college student, a fresh graduate looking for a job, or someone who has a stable career, driving a car is considered a necessity. It makes your life easier in many ways; that is why there is nothing wrong with dreaming of owning your dream car.

But if you are on a tight budget at the moment, do not lose hope because there are many ways to save money so you can afford to purchase your first vehicle. You can also visit website and blog resources that offer easy-to-pay car loans without going through the rigorous process of applying to a bank.

What are the top advantages of owning a car?

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– Convenience. There is no need for you to take public transportation and walk long distances. You will feel less tired when going to work every day. Having your own car is essential, especially if you live in an area that lacks buses, trains, and cabs.

– Time-saving. Commuting can be very time consuming, especially if you need to transfer from one public transportation to another before arriving at your destination. Driving will give you the opportunity to look for shorter routes to your destination.

– Reliability. You can leave the house anytime you wish to run errands like going to the bank and doing some grocery shopping. Also, having a car can help save lives during medical emergencies, especially when there is no available ambulance on standby.
– Independence. You can leave the house and go to different places without relying on somebody to drive you around. Even people with a disability and seniors are able to drive cars and do many things on their own.

– Relaxation. If you have a car of your own, you can easily plan group trips that include your family and friends. You will save a significant amount of money on travel costs.

Owning a car requires having the money to buy it. Here are some tips that can help one of your dreams come true.

Ask yourself what kind of car you would like to buy

Before anything else, you need to decide whether to purchase a brand new car or a second-hand one. You need to ask yourself the following questions, so you can quickly arrive at a decision.

– Is there a specific make and model that you prefer?

– What is your preference – a sedan, hatchback, pickup, or an SUV?

– Are there any particular features that you are looking for in a vehicle? If yes, it is essential to make a complete list for future reference.

Determine how you will pay for the car

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There are different ways to purchase a car nowadays. If you can afford to pay in cash, that would be great. However, if you do not have a significant amount of money in your bank account, you do not have to worry, because there are other alternatives to choose from.

– If you have good credit standing, you can apply for a car loan at your local bank.

– You also have an option to buy the car in installments by going directly to the dealer. All you need to do is comply with the requirements and prepare your down payment.

It will range from 10 percent to 50 percent of the total amount of the vehicle. The remaining balance must be paid for each month by installments until the end of the term.

Figure out how much money you need

Banks and dealers are pretty straightforward when explaining the cost of your preferred vehicle. The next step is making the necessary computations based on your income to determine if you can afford to pay for your purchase or not. Aside from the down payment, you also have to consider the following things that you are expected to pay.

  • Monthly amortization for the car
  • Fuel allowance
  • Maintenance fees like oil changes, flat tires, etc.
  • Towing
  • Insurance
  • Mandatory taxes
  • Tolls and parking fees
  • Registration

The items listed above are going to be your additional expenses. Make sure to think about your finances thoroughly before deciding to get a new car because you will be making a long term commitment.

Start saving money for your down payment

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If you already have enough savings to cover the down payment, that’s good. But if you are starting from scratch, you need to be patient in building your savings account. It may take a bit of time for you to pool the money, maybe a few months or years, depending on your income and cash flow. But if you are determined, nothing is impossible. Here are some things that you can do to come up with the money.

  • Start saving twenty percent of your monthly income.
  • Look for a part-time job.
  • Set up a small business like buying and selling online, etc.
  • Take a loan from your parents or ask them to be a co-signer provided that you will pay them back.

Start making changes in your lifestyle.

If you are dead serious about buying a car, you need to start changing your ways by making sacrifices to get what you want in life. Should you be able to do the following things, you can easily apply for a car and pay off your loan in no time.

  • Limit your spending habits by sticking to buying the necessities.
  • Start cooking your meals rather than eating out at expensive restaurants.
  • Plan your vacation ahead of time so you can make more significant savings.
  • Write down your daily, weekly, and monthly expenses so that you have an idea of where your money is going.

Lastly, always remember that buying a car is a big decision to make. You need to understand that it takes a lot of discipline and commitment to be able to afford to pay for your dream car.

About Edward Spenser

Edward Spenser

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