How to Quickly Save Up for a Car

Saving up for a car reduces how much you will need to borrow from a lender, which can put you in a better spot when you are at the dealer negotiating. Putting more down means you don’t have to borrow as much, which will save you in interest. It does require you to be disciplined but following a few steps will help you save the down payment you need in not that long.

Evaluate Your Other Debt

It’s especially important to take stock of your debt if you are planning on financing your vehicle, but even if you want to pay cash for it, you may want to see how you can save money on your current debt. If you have debt from school, getting another loan could help you pay back what you currently have. Both refinancing and consolidation can help you get there, but they are very different from each other. Choosing the right option can help you save money, and you can look at a guide with more information on both so you can choose the right one.

Figure Out How Much You Need for a Down Payment

You’ll need to get your finances organized and start by figuring out how much your car will cost and shop around for different brands in that price range to see if your budget will get you what you need. Settling on a price range can help you figure out how much you need to save for a down payment. It’s a good idea to put at least 20 percent down if you are buying new. However, don’t stop there if you can help it.

Coming up with more money means you won’t need to borrow as much and can get a better deal. A higher down payment means you are more likely to qualify for a loan. Take your time shopping around for financing just as much as you would shopping around for a car. Both terms and pricing can vary quite a bit depending on the lender. While car dealerships may offer loans, they might not have the best rates, so you may want to look to other providers as well.

Budget for Other Expenses as Well

It can be hard to determine whether your car’s expenses count as a want or a need but ask yourself why you are buying a new car and what you hope it will do for you. If you want something to get you to and from work, it might not matter that it’s a basic vehicle, and it may be a need. But if you are saving up for a fancy vehicle with all the features, it may be more of a want.

Trade in Your Old Car

If you replace your current car, you may be able to trade it in and get an amount to put toward a new one. You could also sell it, which may get you more money but can also take a lot of time. If you are thinking of selling or trading it in, you can use online appraisal tools to figure out how valuable your current vehicle is, so you know if you are getting a good offer or not.