Saving money sounds so simple in theory, but it can be much harder to do in practice. When it comes to saving up for a down payment on a new car, things can get tricky, especially if you have some unforeseen expenses. Here are some tips on saving for a car in the New Year.
Determine What You Can Afford
Setting a reasonable budget is the first step to determining how much you need to save for a vehicle. Planning to buy an expensive luxury vehicle that you can’t afford isn’t going to end well for anyone. Instead, determine how much you can afford in terms of a monthly payment. Make sure to leave room for maintenance and insurance as well.
Calculate a Down Payment
The next step in saving for a car in the New Year is determining how much of a down payment you need. At most dealerships, this can run from 10 to 20 percent, depending on your credit score and the financial intuition. The internet is full of tools that can help you figure out how much you’ll need to get behind the wheel of a new car.
Stick to the Plan
Once you have those numbers in mind, it’s time to start saving. Stick to the plan and aim to save a certain amount, or percentage, each month. Spending a little money on trinkets can be enticing, but the thought of driving home in a new car is much more enticing.
Jimmy Michel Motors can help you determine your vehicle budget and financing options.