Home » Money Management » The Financial Side of Your Dream Car

The Financial Side of Your Dream Car

Ferrari Dream Car
Ferrari Enzo” by fklv 

Whether your dream car is a Ferrari, a Tesla, or even just a Prius it is probably a goal that seems out of reach. Luckily, with dedication, hard work and a bit of planning, it is more accessible than ever to own your dream car.

Test Out Your Dream Car First

Before even planning to buy your dream car, make sure it’s the best fit for you. You never want to spend money on something just for status because the feeling you get will fade quickly. There’s nothing worse than saving for years and spending tens of thousands of dollars to get a vehicle you do not truly enjoy. It may look sporty but not ride comfortably or it may ride nice but not have good visibility.

Corvette” by archer10

A friend of mine dreamed of getting a Corvette for years and finally bought it. He was rather tall and after driving it for a while he realized that he really didn’t like cars that were that low to the ground. He said, he preferred one that “he didn’t have to climb down into”. So he ended up selling it with only a few thousand miles on it and getting something else (but he lost quite a bit of money in the process).

Set a Strict Budget

Luckily, with the advent of the Internet, renting luxury cars is more accessible than ever. Turo and other businesses have effective mobile apps where you can rent a car within minutes. When you take it on a test drive, assess how you feel about the control and features of the vehicle. By trying your dream car out first, you can be confident in your purchasing decision. Of course, you can test drive a car at the dealer but that is usually just a short trip and your excitement might overwhelm your reason. By renting for a few days or a week you get the feel of what it is r3eally like during your everyday driving.

Prius

Once you have picked out your dream car, it’s time to start budgeting. Be transparent with yourself and your spending habits. How much do you want this luxury vehicle? The more you are willing to give up, the faster you can save enough to buy your dream car. Next, you need to follow your budget strictly. If you have trouble following the budget, start only paying for things in cash. Cook more instead of going out to eat. You can also get an accountability partner who will keep you on track or use a service like Beeminder.

Consider Buying from a Used Luxury Car Dealer

Tesla-Model-S
Tesla Model S” by Daniel Piraino

One savvy way to purchase more affordable luxury cars is to look at the used car market. Many luxury used cars have barely been damaged and are well-maintained. You could save tens of thousands of dollars by visiting a used luxury car dealer and finding a steal. When you look at a used car, bring an expert or research to assess the vehicle’s qualities. Sometimes refurbishments will be needed, like replacing the seat cushions or repainting an ugly spot. You need to know how much these repairs will cost to decide if the used car is worth it. Start with your local used luxury car dealer because it is easier to test drive but don’t be afraid to use established online platforms.

Improve Your Credit Score

Finally, it is far more affordable to buy your dream car if you have an excellent credit score. To improve your credit score, you must always pay your balance on time and never spend over your limit. Consistent payments will help improve your credit score. You can also limit your credit utilization to 30% or less. If you have any credit card debt, you need to work to pay that off immediately. That debt will come before any savings for the car.

You can make your deepest financial wishes a reality by following a strict budget, improving your credit score, and purchasing a used car. When you finally purchase your dream car, the feeling of pride and accomplishment will be just as rewarding as the car title.

You might also like:

Scroll to Top