When you’re young, looking at the price of a car can seem impossible. You’ve never really had that much money all at once, so how could you possibly get yourself a car?
However, if you know the best ways to save money and prepare your finances for purchasing a car, it’s an achievable goal. Buying a safe and reliable first car is a passage to adulthood.
Make a seemingly unreachable goal a reality in your life, and start by educating yourself. Take a moment to read through some helpful tips on saving for your first car, and start planning today.
Choose new or used
Before you can even get an idea of how much you need to save to get a car, you need to decide whether you’re going to purchase a new or used vehicle. There are perks to both situations, so it’s all about what best fits you.
If you’re looking to purchase a new car, you will need a sizeable down payment to get anywhere. If you’re purchasing a used car, you may be better off just saving the total cost of the car. Consider which route is best for your wallet.
Set savings goals for yourself
Take the time to determine a price range of what you will need to save before you can get on the road. You may need to save for a simple down payment and your first insurance payment, or you may need to save a larger sum to purchase a vehicle outright.
Set goals for your savings to get you to the place you want to go. If you want your car within the next six months, set your savings goals accordingly. If you plan on spending more time ironing out the details, you may be able to save in a more passive manner.
Boost your income
You will need to have a little extra income to successfully set aside enough money to meet your savings goals. You may want to consider picking up a job or a side hustle if you already have a job.
There are a few different ways to make money online in your spare time. You could also consider a traditional money-maker like mowing lawns or dog walking as a way to make a little extra dough.
Consider the cost of maintaining a car
Purchasing your vehicle is only the first stop in the long line of expenses. You will need to have the money to get auto insurance, pay taxes on your ride, and put gas in it so it will take you somewhere.
Cars need regular oil changes, and you’ll need to be able to fix any small issues that arise. Set aside a little extra money to account for the extra costs of owning a vehicle.
Automate your savings
If the money for your car is automatically taken from your paycheck, it may be easier to reach your savings goals. Set up an automatic draft to your savings account each pay period, and all you have to do is keep showing up for work.