Saving for a car can take a lot of time, but with these tips, you can get the money together in no time.
Tip #1- set your budget
Many people choose to get an older, cheaper car for their first car. There are many benefits to this. Firstly, it’s likely that as a new driver you’ll have a few bumps and scratches, and if you’re driving in an old car, you won’t mind as much. Secondly, it’s cheaper and more affordable in the short term, giving you time to save for your longer term car while still being on the road driving in the mean time (gaining confidence on the roads, etc.) So, with that in mind, set a realistic budget and don’t choose anything too luxurious as a first car!
Tip #2 – have a separate bank account
It’s easier to save for items when you have a dedicated goal and a dedicated bank account. You can transfer money across each money and keep on track more easily.
Tip #3 – Could borrowing be the answer?
If you’re really in need of a car because, for example, you need to drive to work, then perhaps borrowing the money wouldn’t be such a bad idea. As long as you can meet the repayments, you could consider this kind of loan ‘good debt.’ Wonga S.A. The online loan provider, blog that there is ‘good’ debt and ‘bad’ debt. Your car would get you to your new job, which is important, so it almost acts as an investment in yourself. This would be good debt – debt you can manage, debt you can pay off, and debt which ultimately gets you somewhere in the long term.
Tip #4 – Look at private sales
Many garages mark up their prices, but private adverts can come with a lot of good deals. The only issue is that it is important to get a mechanic to come along with you, or the very least, someone who knows a little about cars, to give the engine the once over and to estimate whether the vehicle is worth what the seller is asking. Look at local online adverts regularly and don’t be afraid to just go and have a look. Check out some online car buying guides to swot yourself up on what you’re looking for and what to ask the seller.
Tip #5 – make cut backs
You can’t expect to buy a car without cutting back elsewhere in your life. Remember, every extra Starbucks coffee is another few coins out of your car fund – and it soon all adds up. Make the cutbacks you need to afford the car and don’t worry about biding your time – a car is a big purchasing decision so don’t feel rushed to buy the wrong car if you’re not sure!