Whether you’re saving for a secondhand vehicle or you want to minimise the amount you may need to borrow to get a new car, saving for your next car can seem like a daunting prospect. However, the more money you have set aside, the better options you’ll have at the dealership and the less time you’ll spend paying off your new car and the additional interest.
Simply put, if you want to save thousands on the cost of your new vehicle then putting as much money aside as possible is your only option. Building that deposit is crucial, so here we’ll take a look at how you can save as much as you can on the cost of your new vehicle.
Get your finances in order
How can you expect to save if you have no control over your current financial situation? If you have unpaid bills or escalating debts then using Creditfix could be the perfect option for you. Debt consolidation or just some simple advice could mean the difference between your debts spiralling out of control and financial success. Take a look at your bank balance and figure out what you owe before you start saving.
Limit your spending as much as possible
Saving is much easier when you have a goal in mind. So, limiting your spending shouldn’t be too difficult. Overspending on groceries, unneeded subscriptions, nights out and other unnecessary expenses can quickly drain your bank accounts, so cutting as much as you can out of your monthly spending habits is essential.
Make your savings automatic
Making regular contributions to your car saving fund is much easier when it’s automated. Telling yourself you’ll wait until the end of the month to see how much you can put aside or telling yourself that you’ll do it later is just a way of evading your need to save. Once you know how much you can afford to save each month, make sure that amount is automatically transferred to your savings account. It’s hassle-free and simple!
Decide what to do with your old car
If your new car is going to replace your old one, then you could be sitting on a nice little financial boost! Decide what you want to do with your old vehicle and put the money into your savings pot. You could have it scrapped or sell the car and its parts privately. Bear in mind that selling your car privately can be time-consuming, so keep your time frames in mind.
Get more money!
Want to speed up the saving process? Consider doing some overtime, taking on more shifts at your job, selling your old clothes, books and unwanted junk, or even consider a side hustle to give your car savings a boost.
And finally, consider your wants vs your needs
Reversing cameras, parking assist, expensive paint jobs, heated seats, all of these things are great, but you might need to be a little more realistic. Opt for a car with a high safety rating, rather than one with automatic seat belts – find a reliable car rather than one that looks good. Make a list of your wants vs your needs and you’ll reach your saving goal much quicker.