Buying a new car is the second-largest purchase (next to a house) that most people will make. While it can be quite a challenge to get the best possible deal for your dream vehicle, saving some money before buying is always the best place to start. So here are six money saving tips to give you some ideas on how to save for a car.
- Know how much you need to save
You should have a goal in mind about how much you need to save. Setting up an automatic transfer from your transaction account to your savings account is an easy way to transfer money to your savings account every time you receive your pay check.
- Be smart with your money
A good way to save money is to adopt smart spending habits. It entails a bit of a sacrifice such as taking your lunch to work, eating out less, buying second-hand, or opting for less expensive products. But doing so will add more money to your car fund.
- Earn more cash
Aside from saving, you could try earning money from sources other than your day job. You could rent out a spare room, hold a garage sale, sell things online, or get a part-time job.
- Sell your old car
Trading your car in to a dealership can make buying a new car easier but the the dealer will probably try to lowball you on the trade-in value. Selling your old car by yourself can take more time but results in a better price.
- Do your research
It always pays to do your research. You can do this by comparing car loans on comparison sites and using a car loan calculator.
- Get your finances in order
You will probably need to get a car loan when buying a new car. To get the best deal on finance try to improve your credit score through methods such as as making your repayments on time and cutting your debts where possible.