Last Updated on August 7, 2019 by Melissa S.
If you’ve recently passed your driving test, saving for your first car can seem like a daunting prospect. Saving for a car doesn’t have to be hard though, with these simple tips.
- Consider the different ways to pay for a car. You could save up for at least a deposit and then make up the rest with a finance option from the dealer, a loan from the bank or with a hire purchase or credit plan. If you’re struggling to find a finance option, consider a less intensive creditor like https://www.reallyeasycarcredit.co.uk/used/sunderland.
- Put aside a set amount each month to keep your savings ticking upwards. Even a small amount will help to get you closer to paying a deposit on your new car. If you have any spare money at the end of the month, add it into your savings.
- Keep the money in a separate savings account so you aren’t tempted to spend it on anything other than your car. A high interest savings account could help you boost your money too.
- Calculate how much you can afford to pay. Buying a car on finance or with a hire purchase scheme means you’ll be making monthly payments. Make sure you’ve factored these payments into your budget so you can afford them each month.
- Set a target date to have your savings ready for. Perhaps you need a car to start university, or would like to have your car ready for a big birthday coming up. Set a date to keep you on track with your savings and keep your motivated.
- Track your spending habits. Keeping a spending log can help you to see where your money is going and where else you could be making savings. Seeing written down how much your coffee habit or buying lunch at work is costing you could help you to make changes to your budget and find ways to save even more money.
- As well as opening a proper savings account, save money the old school with a money box. If you’re carrying around loose change, put it in the money box. Regularly clear out your wallet of small change. You’ll be surprised how quickly a good amount of cash can build up this way, from money you’d usually waste.
- Keep yourself motivated to keep saving by walking everywhere. Seeing how long it takes will have you desperate for that car, and you’ll do anything to save up enough for it.
- Be smart and get quotes for a car from several different dealers. If you can find similar model for cheaper somewhere else, you could use this to negotiate a lower price or more freebies thrown in with your preferred dealer. Many dealers will try and price match, or tempt you with included service plans or warranties in order to secure your business. Use this to your advantage and bring down the price of your car.
- Earn some extra cash by selling unwanted items at a carboot sale or on eBay. Put any money you make straight into your savings account so you don’t end up sending it.