Money-Saving Tips to Afford a New Car

Though new vehicles are more affordable than ever, buying one is still a major investment. If you’re looking for some money-saving tips on how to save money to buy a vehicle, you’ve come to the right place.

Money-Saving Tips | Bill Jackson | Troy, AL

  1. Set up a Budget: Before you ever consider purchasing a new car, you need to know how much of your income you can afford to spend on a new vehicle. Calculate your monthly expenses, then see what’s left. At minimum, you should save enough to cover your car payment, insurance, gas, and maintenance.

 

  1. Save for a Down Payment: One of the best ways to lower your monthly payment is to put a substantial amount down on your new vehicle. Most experts recommend trying to prepare a down payment that is 10 to 20 percent of the overall cost of your vehicle. You can also put this money into a high-yield savings account to earn extra passive income towards your purchase.

 

  1. Sell Us Your Old Car: If you already have a vehicle, you can sell it to Bill Jackson Chevy Buick GMC Cadillac for a credit toward your purchase. After a test drive and an appraisal, we’ll offer you a fair value for your old car.

If you want any more advice on how to effectively save up for a new car, how to navigate the financing process, or if you’re ready to get behind the wheel of the vehicle of your dreams, stop by Bill Jackson Chevrolet Buick GMC Cadillac today.

Money-Saving Tips to Afford a New Car

Afford a new car - Troy, AL

If you’re concerned about being able to afford a new car, you can rest easy. Bill Jackson Chevy Buick GMC Cadillac has got your back with a few money-saving tips to help you get that new car off of the lot and into your garage in no time.

  • Make a list of must-have features and a separate list of would-like-to-have features.
  • Establish your “target price.” Once you’ve determined how much you’d like to spend, research a few makes and models online to see if this price is realistic. If you can get all of your “must-haves” within that price range, you’re good to go. If not, either your target price or your must-haves will need to be adjusted.
  • Plan to put at least 20% down on a new car. Making a larger down payment means you may need to save for a little bit longer in the beginning, but it will save you money in the long run.
  • Try to limit spending on unnecessary expenses. Consider eating out less frequently or temporarily switching from name brand to store brand products.
  • Establish a savings account. If your financial institution allows for it, you can create a separate savings account dedicated to your new car and have a certain percentage of your paychecks deposited automatically.
  • There are numerous “gig jobs” available today in everything from ride-sharing to dog-walking. Consider picking up a temporary side job to help you save up for that big down payment.

Purchasing a new car is a very exciting process as long as you’re well-prepared. Visit Bill Jackson Chevy Buick GMC Cadillac and have a member of our staff walk you through everything you need to know and help you set up a savings plan.