If you’re thinking about getting a new car this fall, you’ll probably want to start planning for it now. The more money you can save, the less you have to borrow when it’s time to get your vehicle. This puts you in a stronger buying position. Use the following helpful tips so you’ll be able to get your new car this fall.
1. Choose Your Car Ahead of Time
Before you can begin saving for your new car, you have to know how much money you actually need. Make a list of all the features you would like to have in your new vehicle. Include things like safety features, connectivity technology, interior comforts, and exterior conveniences. You can then start searching for a new car based on these wants and needs. When you decide which model you’re interested in and you know how much it will cost, you have a goal to start saving toward.
2. Set up Automatic Savings
Once you know how much money you need to save, it’s time to actually start saving it. One of the best ways to do this is to set up a separate savings account just for your car. Decide how much money you want to put aside each paycheck or each month, and then create an automatic transfer to send that money into your savings account. Making your savings automatic will help you reach your goal because you won’t be tempted to use it for other items.
3. Improve Your Credit Score
After you have your savings account set up and you’re putting money in it, you want to explore other ways you can save money. Improving your credit score is one step you can take. Good credit scores can help you qualify for a better interest rate on your car loan. To improve your credit score while you’re saving money for your new car you should pay your bills on time, pay off your debt, keep low balances on your credit cards, and make sure there are no inaccuracies on your credit report.
4. Cut Back on Unnecessary Expenses
Cutting back on any unnecessary expenses is another way you can save money for your new car. Start taking notes on everything you purchase and decide what you can reduce. For example, if you typically eat out five times a month, consider cutting back to three times a month and putting the money you save directly toward your new car.
5. Sell or Trade Your Current Vehicle
When it’s time to get your new car, you need to decide what to do with your old vehicle. If you sell it or trade it, you can also put that money toward your new car. While you’ll likely get more money if you sell your car yourself instead of trading it in, you have to decide if that’s worth the extra time and paperwork involved.
If you’re ready to buy a new car this fall, you can use these money-saving tips to make sure you have the cash saved up for the vehicle you want.
Image via Flickr by 401(K) 2013
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