Saving for a new car can be difficult, but it’s important to keep the benefits of saving in mind. According to Forbes, it’s easier to save if you keep the “future you” in mind while cutting corners now to save for the future. You’ll thank yourself after you’ve saved a chunk of money for the down payment for your new car because it will make your monthly payments much more affordable than if you had no down payment at all. Having a smaller monthly payment will ease your finances and help you save interest on the loan so it’s a win-win. The more you save the better off you’ll be. Even better is to drive a clunker until you can afford to pay for your entire car it avoids paying interest and actually has your bank paying you interest (as small as it may be) while you are saving.
Let’s take a moment to examine some tips that will help you save.
Set a Date
The first thing you need to decide is when you want to make your purchase. You might need to ask yourself how long your current vehicle can last you until you make your next purchase. Once you decide how long that will be (i.e. one year, three years, etc), you can adjust your goals accordingly. Obviously, the further away the date is, the more money you’ll be able to save toward the purchase of your new car.
Plan Your Purchase
Once you’ve set a date when you’re going to buy your car, you’ll need to decide [Continue reading]