Whether you need a replacement for your current car, or you are working on buying for your teen, these tips for How To Save Money for a Car are a must! Check out our top tips and learn how anyone can manage a new car, despite their budget!
This week I wanted to talk about one of the biggest expenses in a monthly budget… Your car (or cars). When you are starting to plan on living a more frugal lifestyle, one of the biggest contributing factors to success is to being able to minimize how much money is going out of your budget every month.
How to Save Money for a Car
Car payments are a huge chunk of your budget. As with almost anything in your adult life, owning will be more cost-effective than leasing. There is are very few scenarios where a lease is a frugal option. Making payments is another pitfall to try avoid. The reality is that sometimes things happen and purchasing flat out in cash will not be an option. But if you consider that a loan will cost you more in the long run, perhaps you will make some wiser choices with that loan.
Carpool: What about sharing a car for a month or two while you save? This will be harder but could pay off down the line.
Check out Public Transportation: Is public transportation an option while you save? Does anyone you know at work carpool and would be willing to help you with rides to and from work for a few months while you save?
Buy the used car instead: Perhaps you don’t really need the newest, nicest car for just driving back and forth to work. Maybe you could get a safe, reliable, albeit less attractive car to drive back and forth while you save?
Research all options before you enter into a loan: If you must get a loan, there are a lot more options than just going to a car lot and working with their financing. Do you have a credit union in your area? Most have car loans at extremely low prices with short repayment schedules. Then you will also walk onto a lot with “cash in hand” you will not only end up paying less in interest but will also have the upper hand if there is room to negotiate.
Consider using credit card loans: What about a credit card company? On occasion, this may be a smarter route. There are cards that will offer you a small amount (usually less than $10,000) for 48 or 36 months interest-free. If you can stay on track with repaying quickly, this might be an exceptional option.
Get creative with financing. Google those big advertised sales and see what that fine print is. Know your options. Shop for the best deal. Always get an outside mechanic’s opinion on a car before the return window ends. Don’t be blinded by wants versus needs. Always look at your bigger financial goals to keep that bigger picture well within view.
Learn how to save money for a car and avoid extra debt when possible with our great tips!
More Frugal Living Tips:
Read part 1 of Angie’s Living on $30,000 Best Frugal Tips on Thriving and (not just surviving) on $30,000 a year!
Part 2 – Basic Home Budgeting
Part 4 – How to Not Spend Money
Part 6 – Money Management Skill
Part 7 – Why Couples Should Talk About Money?
I am a stay at home mom and happily married to my husband Tom. I have a five year old daughter and a two and a half year old son. I grew up in Orlando, but went to school in New York City and lived in Los Angeles before moving home to raise a family. I have worked in the film industry since the early nineties, and for over a decade with the Florida Film Festival. I also spent many years working in marketing with Glaceau and Honest Tea. But, I am happiest at home building my family.
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