With a new year and new decade, you probably have some big goals for the year. If you want to put aside enough money for a down payment on a new ride this year, we have some tips to share on how to save for a new car.
- Are you buying new or used? The first thing you need to decide is if you want to buy a new or used car. If you want a new car, you should aim to save 20% for a down payment. For a used car, you should save 10%.
- Make a budget. Financial experts recommend you create a 50/30/20 budget, which means you should use 50% of your income for needs, 30% for wants, and 20% for savings and debts. Depending on what kind of car you want, it could be considered either a need or a want.
- Cut unnecessary spending. If you want to reach your goal sooner, you should cut out any needless spending. This could mean fewer trips to the coffee shop or evenings spent at the movie theater.
- Use a savings account. The best way to make sure you don’t spend your savings is to keep the money in a separate savings account. You should also make your savings automatic by depositing money into the account every time you get paid.
By following these steps, you will be well on your way to driving home in a new-to-you car. And remember — at Blaise Alexander Chevrolet, we’ll always work with you to get you the best deal on a car regardless of your credit score.