How to Save For a Car: 5 Tips, Loan, Craigslist, & Bonus Tip


Is it starting to feel like it’s time to buy a new car? Or maybe your very first car?

No matter what point you are at in your life, it can feel difficult to take the step to start saving the money you need.

It can feel far away whether it is a brand new car you are looking for or a car that is new to you even if it has been a few years.

If you take one thing at a time, it can feel easier.

So, how do you actually save for a car?

The best option for saving money for a car may be to start saving in stocks and mutual funds to get together for some money. Then you can save a certain amount every month and then after a year or two you have collected a small penny plus you get a return, get shares and dividends every year.

Here are 5 steps you can take to get closer to your goal of buying a new car

1. Take a loan?

As I said, there is an alternative to saving and that is to take out a loan.

On the one hand, there are car loans that are a specific loan just to buy a car. Then there are other loans that can be used to buy a car.

Calculate if you can afford to borrow the entire amount for the car, or part of it. Also keep in mind that there will be other costs associated with your car purchase.

Like taxes, insurance, fuel, service, tires and more.

2. Set a goal

It is good to set a goal when you want or need your new car. If you already have a working car, it may not be as urgent as being completely without it.

It is good to set a clear savings goal. A sum to work towards, so to speak.

Then you can calculate how much you have to save each month to reach this amount. When you start approaching the amount you intended, it may be time to start looking for a car.

It is important to be patient, a car still costs some money.

Do not take the first best car.

3. Calculate how much you need to save

If it is the case that you do not have a car at all and no savings capital, the simple answer is that you must save the entire amount that the car costs.

You can then think about what you want to put on a car, within which price category feels reasonable to you.

Maybe it could be more worthwhile to invest in private leasing?

If you already own a car, then you may be able to get a certain amount for it, which you then add to what you save together.

Then you do not have to save the entire amount.

You can sell the car on your own, or exchange it when you buy a new one.

There are also companies that buy your car, which can pay really well, so check out and compare in several places what you can get for it.

4. Start saving

To start saving, it is good to say that you have decided how much to save and how long it will take.

It is a must to know how much money you have to spend each month.

If you want to be sure to save every month, it is a good idea to set up an automatic transfer of your payday to the amount you need to save directly to your savings account.

Then you will not notice them, so to speak, or risk using them on other things.

If you want a car that costs $1000, you need to save about $80 a month to reach the goal in one year.

If the car costs $2000, you need to save around $160 per month for one year.

Set a goal that is reasonable for you.

Both in terms of sum and time.

5. Save without sabotaging yourself or your family

To be sure that you will succeed, you should have set a realistic budget.

It should not be a punishment to save and that you should not save so much that you neglect other things, so to speak.

Of course, it is a must to first pay all bills and more that come every month.

That before you save. Then you must not say no to other pleasures, it should be ok to treat yourself to certain things. There should be room for that as well.

Be moderate in your changes so that you do not kill the joy of life or stress yourself out.

By setting a good budget and having a good plan, you can succeed without tightening too much. It is better to save a little less for a long time, than to neglect a lot of other things.

Also remember to set up a savings in buffer form. It is almost a must to start with, before you start saving for a car.

Now you are ready to go. Set a budget, check if you can afford to borrow money or if you only want to save money for your car.

Calculate what amount you need and think about how long you want it to take you to get it together.

If you choose to borrow, whole, or parts, then make sure you find a good loan, at a good interest rate. A loan that does not have an excessive cost.

Also: Craigslist

An alternative is to also review if there are other things at home that you can sell.

It can give you more money for your savings goal. Many of us have a lot of things in the home that can do better for others.

So check your storage, closets and basements.

Go to a flea market, or place ads on Craigslist. You may also be able to sell services such as cleaning, shoveling snow, mowing grass, dog sitting and more.

Or if you are good at crafts, crafts, or writing. You can then make money from it too.

Then you will reach your goal even faster.

Bonus:

Have advertising on the car

There are companies that mediate contact between private drivers and companies that are willing to pay to have their advertising on your car.

How much you get paid per month depends on several factors, for example if you are willing to have the whole car repainted.

From what I have heard you can earn up to $450 per month just to drive around with stickers on your car.

Conclusion

Saving money for a car

It can be hard but it is a very fun reward you get when you have saved. Then and you buy a new car, the value of it lasts quite well, so then you can resell it after a few years if you are tired of that particular car.

But keep in mind that saving money for a car is significantly better than borrowing for a car.

Also, check out this video I found on Youtube on how to save money fast:

Sources

https://www.researchgate.net/profile/Hans-Otto-2/publication/318900358_Save_the_Diesel_Car_Proposal_for_Nitrogen_Removal_with_the_Aid_of_Cost-Efficient_Built-In_Zeolite_Based_Oxygen_Concentrators_and_Accompanying_Steps/links/5de8c28f92851c836462a93b/Save-the-Diesel-Car-Proposal-for-Nitrogen-Removal-with-the-Aid-of-Cost-Efficient-Built-In-Zeolite-Based-Oxygen-Concentrators-and-Accompanying-Steps.pdf

https://www.sae.org/publications/technical-papers/content/2015-01-0153/

Kevin

This article has been reviewed by our editorial board and has been approved for publication in accordance with our editorial policies.

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