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.
When thinking of buying a new car you should have a savings goal in mind about how much you need to save. You'll need to consider how much you can afford both in terms of the upfront costs of the vehicle but also the running costs.
Additional expenses like repair costs, fuel costs, ongoing maintenance, registration fees, and insurance rates are a few common big-ticket items. These can all add up so it's important to keep them in mind when doing your budget.
Similarly, if you intend to get finance in the form of a new car loan to help pay for a portion of the vehicle then you'll need to factor in the monthly payment and/or balloon payment.
A good way to save money is to adopt smart saving and spending habits. It entails sacrifices 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.
Another helpful saving strategy is to set up an automatic transfer from your transaction account to your savings account as an easy way to transfer money to your savings account every time you receive your paycheck.
There's also a variety of budget apps available to help you manage your money during the saving period.
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. Anything you can do to find additional income will help you reach your savings goal much quicker.
Trading your car into a dealership can make buying a new car easier but 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.
If you're not ready to sell your old car yet, think about how you can reduce costs while you drive it. For example, look at how you can adjust your travel to reduce your fuel consumption. By saving money on fuel, you can put the extra cash towards the new car.
It always pays to do your research. If you're looking at getting car finance you can do this by comparing car loans on comparison sites and using a car loan calculator. At loans.com.au we offer a range of flexible and low rate car financing options to suit your needs and budget.
Make sure to do your research on the different models of cars too. Whilst certain safety features may be critical, consider getting a model with fewer frills to keep the cost down. Weighing up the different vehicle options can help determine what features you really want and which ones you can do without.
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 making your repayments on time and cutting your debts where possible.
Car prices can fluctuate over the course of a year and there are certain times where you're more likely to get a better deal.
For example, the end of the month as well the ends of the financial and calendar year are common times for dealerships to clear stock or meet sales targets. During these periods the sales price or average price of the car is usually reduced.
We know that saving for the full market value of a new car can be a challenge, that's why we offer great deals on cheap car loans to help drivers get their car sooner.
With no ongoing fees, fast online applications and low-interest rates, we make car financing easy.
Apply online today or chat to one of our friendly lending specialists and they can do the hard work for you, managing your application quickly and easily over the phone.
As Australia's leading online lender, loans.com.au has been helping people into their dream homes and cars for more than 10 years. Our content is written and reviewed by experienced financial experts. The information we provide is general in nature and does not take into account your personal objectives or needs. If you'd like to chat to one of our lending specialists about a home or car loan, contact us on Live Chat or by calling 13 10 90.