It doesn’t matter how young or old you are, the first time you buy a car is always an exciting time. There’s something about driving down the road in a car that is your own, and that feeling drives (pun intended) sales for the automobile industry year after year.
Now it’s your turn to feel the pride of owning your own ride. Take a few moments to invest in information, and read through this brief look at a few tips that will help you save money to purchase your first car.
Aim small at first
If you’re purchasing your first car, you’ll need time to gain experience. You may be a great driver, but there are actions and issues involved in car ownership that you will have to learn as you go.
Give yourself the chance to learn on a midrange vehicle, and don’t break the bank. Owning a car is more expensive than you think, and you’ll thank yourself for securing a lower monthly payment.
Layout a detailed budget
To effectively begin saving the money it takes to procure a new vehicle, you must first gain hold of your finances as a whole. If you don’t already live by a strict budget, now is the time.
Lay out a detailed budget for every pay period, and stick to what you plan. Add a savings section to the budget, and forget that money exists.
Cut costs whenever possible
Whenever you know there’s a less expensive way to achieve your goals, take an alternate route. The savings will add up a lot quicker than you realize.
Purchase off-brand groceries, and second-hand clothing from the thrift store. As long as you have what you need, it doesn’t really matter how much it costs to obtain.
Open a fixed savings account
If you find that you’re having trouble with self-discipline, try setting up a fixed savings account. The rules that go along with this type of savings account are aimed to discourage you from spending the money you’ve put back for savings.
With a fixed savings account, you will be financially penalized for withdrawing money before the agreed-upon date or total is reached. To get a more accurate picture of these penalties, consider this.
If you were to withdraw $3000 before the date agreed upon, the bank would likely take around $900 of that money. You won’t like that hit.
Don’t take any hits to your credit
It’s important that you look after your credit when you’re working on purchasing a new car. You’ll need a decent rating to get a good offer on financing. Don’t take on any new debts for a while before you plan to make your purchase, and refrain from having any new inquiries hit your credit.