On average, a new car costs around $48,000 around the US. That’s a lot of money to come up with all at once for most people. So if you’re hoping to buy your dream car without taking out an expensive loan or sacrificing every extra penny you make, then it’s important to start planning and saving early. You don’t have to wait until you have the full amount saved up either. Here’s how to effectively save for and own your dream car:
Set a Realistic Goal
It’s important to know exactly what kind of car you want, how much it costs, and when you’d like to purchase it. Once you have this information create a timeline that outlines an achievable plan for reaching your goal. For most people, this is usually done at the beginning of the year, when they first create a budget. But it’s never too late to start planning, no matter what time of year it is.
Your dream car can be any vehicle you define it as; whether it’s a brand-new sports car, a classic collector’s edition, or an affordable second-hand vehicle. The important thing is to choose an amount you can commit to saving each month.
Build Your Credit Score
One of the things that can stand in the way of owning your dream car is a lack of credit. A good credit score will give you access to more favorable auto loan terms and interest rates, allowing you to purchase your dream car more affordable.
Start by checking your credit report, which can be obtained free of charge once per year from each of the three main credit bureaus: Equifax, Experian, and TransUnion. Make sure there are no errors on your report and take steps to repair any damages that may have been done to your credit score. Pay your credit cards and other bills on time to improve your score over time even as you save.
Create a Separate Savings Account
By up a separate savings account specifically for your dream car purchase, you can make sure that the funds you set aside for your goal stay untouchable. A separate account also helps you stay motivated, as you can track your progress more easily. You’ll also be less likely to dip into your savings when you can actually see how much you’ve been able to put away.
Cut Unnecessary Expenses
Looking for additional ways to save? Opt out of unnecessary expenses like cable TV, gym memberships, or expensive meals out and allocate that money towards your dream car purchase instead. The more you can cut, the faster your savings will grow. You’ll be surprised at how quickly your savings can add up!
Consider Earning Extra Money
One of the easiest ways to save is to work some extra hours or take on a freelance job. You could also look into selling items you no longer need or use, like clothes, gadgets, and furniture. These extra funds will go straight toward your car fund and help you reach your goal even faster. With the many job opportunities available online, you should be able to find a source of extra income and fund your car more quickly.
Take Advantage of Deals & Discounts
The key to successful saving is to always be on the lookout for great deals or discounts when making purchases. Make sure to compare prices, look for coupons or use apps that give you cash-back rewards, as these small savings can really add up over time. When you do finally buy your dream car, take time to research the best offers and deals available, as this could potentially save you hundreds of dollars or more.
Put Savings on Autopilot
If you’re the type of person who often forgets to put aside money for savings, it might be time to set up an automatic transfer from your checking account into a dedicated savings account each month. That way, you can ensure that your car fund is always growing without having to manually transfer money. Doing this can also help if you’re prone to impulse-buying, as the money will already be safely tucked away.
Make Savings a Priority
When it comes to achieving your goal of buying your dream car, remember that the earlier you start saving and the more you save each month, the sooner you’ll reach your target amount. Therefore, it’s important to make savings a priority and put away as much money as possible each month. You can even set a reminder on your phone to make sure you’re never forgetting about your goal of buying the car of your dreams.
Consider Buying a Used Car
If your dream car is out of reach or you simply don’t have the budget to buy a new one, consider buying a used car instead. Buying used can be an excellent way to save money and still get the car you want. Before making any decisions on what kind of car to get, make sure to do lots of research on the make and model of your chosen car to ensure that it’s a reliable option. Also, you should always have a mechanic inspect the vehicle when looking at used cars – this can save you money in the long run by ensuring that any major repairs aren’t needed soon after purchase.
Buy Your Dream Car With Lakeland Ford
If you’ve set your sights on a brand-new car and you have the means to purchase it, Lakeland Ford is here to help. Our team of helpful sales representatives will work with you to find the perfect car for your needs and budget. We offer an extensive selection of new Ford models as well as used cars from different manufacturers. Need financing for your dream car? We have a variety of financing options to help make that car purchase easier. Visit us today and get the car of your dreams!