Are you tired of driving your current set of wheels? If so, it may be time for a new car. But are you ready to drop a few thousand dollars on a down payment? Without it, you’re not going to get the car you want.
But don’t worry. You can save for that vehicle, and it won’t take quite as long as you may expect.
Here are a few ways you can efficiently save for your new car purchase.
Calculate your car budget
Before you can come up with an adequate savings plan, you must first figure out how much you’ll need to save. For a new car, this may include figuring out what a reasonable monthly payment would be. Then you’ll know just how much you’ll need to save for a down payment.
Keep in mind that you don’t necessarily have to make a car buying decision now. But you should have a feel for how much you’ll be spending overall and what you’d need to put down in order to keep the monthly payments reasonable.
Setup a new bank account
If you want to keep track of the money you have to put towards a new car, keep it in a separate account. This way, you know how close you are to your goal and you won’t be tempted to use it for something else.
Note: Take a look at high yield savings accounts from CIT Bank. Not only do they have some of the highest rates available, but you can also set up an account with just $100.
Take on odd jobs
These days, it’s easier than ever to pick up an odd job here or there in your spare time. You could become a Lyft driver, or run errands through sites like TaskRabbit. All you have to do is pick up enough jobs and put all your earned cash into the car fund you set up.
Before you know it, you can have enough to put down on a new car without even having to adjust your monthly budget. If you choose to finance your car, you can keep up with the side job to cover the car payments. Otherwise, you’ll need to adjust your budget to account for the extra expense.
Setup auto transfers
If your bank allows it, and most do set up an automatic transfer each month from your everyday banking account to your car fund. You can set something up once a month or move money each time you get paid.
When it’s automated, you don’t have to think about saving money, it just happens.
Save money where you can
If you aren’t being frugal already, maybe now is a good time. Shop the grocery store circulars and clip coupons to save money. Doing simple things should easily allow you to save $25 or more each week. That’s an extra $100 each month to put toward your new car purchase.
You can also take a closer look at your other finances. Are there areas where you can save money? Are there any subscription services you can cancel? Can you cook more at home instead of eating out? If you can trim your budget in other areas, it’ll be easier to save money for a car.
Note: Check out the Trim app. Not only will they help you find subscriptions you might no longer need, but they also help negotiate bills on your behalf. Last month alone they saved customers over $1 million.
Consider downgrading cable
If you’re currently paying for a lot of channels you don’t use, consider downgrading your service. These days, many people are cutting the cord on cable and going to Netflix or cheaper cable alternatives like Sling TV, which is a substantial savings over cable. Just be sure to stash the savings away in your car fund.
Saving for a new car doesn’t have to be difficult. With a few simple adjustments, you’ll be driving off in your new ride before you know it.
