How to Save Money for a Car

Wednesday, June 12, 2019, 6:00 AM | Leave Comment

Buying a new car is an exciting, but costly, proposition. With the price of a new car ranging from $20,000 to $35,000 or more, it’s no wonder that saving money to purchase a car can be a daunting task.

Whether you’re planning to finance your new car with a down payment or want to pay cash for your next set of wheels, here are some ideas about how you can save for the purchase.

How to Save Money for a Car

  • Create a Budget

    The first thing you should do when preparing to buy a car is decide how much money you are willing to spend; that should be followed by deciding what type of car you want. These two factors together will help you set expectations and know how much money you’ll need to save.

  • Open a Savings Account

    It’s a good idea to set up a savings account specifically for your car purchase and to add money to that account on a regular basis. If your bank offers automatic transfers from your checking account to your savings account, take advantage of it.

  • Save your Change

    You’d be surprised at how much loose change you have in your pocket or bottom of your purse. Empty your pockets every day and put that money in a jar. Even if it’s just pennies, they add up quickly. When the jar is full, take the money to the bank and place it in your savings account.

  • Save on Groceries

    Another way you can save money for a car is by using grocery store coupons when shopping. Just make sure the coupon is for items you’ll actually use, otherwise you’re just wasting money. Rather than buying prepared foods, make more of your meals using healthier, less expensive foods.

  • Make Coffee at Home

    Is that cup of designer coffee you buy every morning on the way to work really necessary? You could brew a reasonable cup of coffee at home and take it with you when you leave the house. Put the money you save in your new car account.

  • Consider Your Television Options

    A great deal of savings can be found by downgrading your cable TV package. You might even want to consider streaming services with your internet provider. Streaming can save hundreds of dollars depending on the service you choose.

  • Cut Back on Monthly Utilities

    Another way to save money is to cut back on utility costs in your home. Look at your water, energy bill, and any other utilities you use on a monthly basis. If your water bill is too high, consider taking shorter showers and doing full loads of dishes to save money. If your energy bill is through the roof, keep your AC temperature high in the summer, shut off all lights when you leave a room, and use your oven sparingly. Those monthly savings can be put right into your car account.

Making just a few minor changes in your lifestyle can result in huge savings and make obtaining that new (or new-to-you) vehicle much more doable. No matter how you decide to save money, just remember that it’s important to put those savings directly into your car savings account as opposed to spending them on other items.

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