In recent years, the price tag on new cars has risen dramatically. Now, in 2022, buying a new car is more expensive than ever before. In fact, the average new vehicle is over $47,000!
Of course, used cars are also more expensive than in the past, making buying an automobile a huge expense. That’s why many drivers struggle to find ways to save for a car.
Do you need cash for a car? If so, keep reading! We’ll share some clever tips and teach you how to save for a car!
1. Figure Out How Much You Need to Save
If you already know the car model that you would like to purchase, calculating your down payment will be a breeze. If it’s a new car, you should put down twenty percent and ten percent if it is a used car.
Of course, the more money you can put down upfront, the easier it will be to make your monthly payments. And, if you have trouble getting a car loan, make sure you check out services like TitleLoansWithNoJob.com.
2. Follow the 50/30/20 Rule
Now that you know how much to save for your deposit, you should create a realistic budget. It’s a good idea to designate fifty percent of your income to bills and essentials, thirty to entertainment and wants, and twenty percent to saving or repaying debt.
Of course, if you can afford to save more than twenty percent of your income, it will help you buy your dream car faster! But remember that you’ll need to pay for car insurance and vehicle maintenance. So don’t forget to include this in the budget!
3. Trade in Your Current Car
If you’re replacing your current car, selling or trading it in will help you get money for a car on the spot. You can use appraisal tools to estimate your car’s value and sell it yourself. But if you want to trade it in, you’ll have to take it to a dealership.
4. Get a Side Hustle
If you already have a full-time job, you can get extra cash by starting a side hustle. Some examples include:
- Selling items online
- Becoming a rideshare driver
- Tutoring or babysitting
Having an extra source of income will allow you to put more money into your car fund. Or you could use the funds to get a better make than you can afford on your current salary.
5. Automate Your Savings
If you have trouble with self-control, automating your savings will prevent you from spending your money to buy a car on things you don’t need. So, check with your bank to see if they offer this kind of service. If not, you can open a savings account and schedule automatic transfers from your checking account.
Now You Know How to Save for a Car
With the help of this brief post, you know how to save for a car. So, put these tips to use and start saving as soon as possible! If you do, you’ll be driving off into the sunset in no time!
If you liked this advice about saving for a car, you’d likely enjoy learning more financial tips and tricks! So browse more related content on our blog!