Congratulations! You’ve finally got your license and you are ready to hit the open road! The only thing stopping is figuring out exactly how to save enough money to purchase an affordable vehicle. Whether you are looking into buying a new car or a used car, here a few things you might want to consider:
How soon would you like to purchase your new vehicle? It is important you figure out a timeline such that you can save the proper amount of money and you have the opportunity to get all of your other finances in order. Make sure your timeline is realistic and falls in line with your income and other expenses.
Car payment plan
You need to figure how much you are comfortable spending in car payments each month. While creating this budget, bear in mind that you will need to be able to simultaneously save enough money for car insurance and car maintenance. Maintenance can include but is not limited to tire rotation, oil change, car batteries, etc.
How much do you need to put down?
Take advantage of all the internet has to offer and use available tools to help you figure out how much you need to put down. Take the time to test different down payment amounts and terms to see which scenario can best fit in your budget.
Now that you have figured out when you want the car, how much you can afford and how much you need to put down, you need to start saving! Eliminate anything from your budget that you don’t need to spend money for and allocate that money towards your “new car fund”. This may not be as easy as it seems but it will definitely be worth it once you’ve reached your goal and are behind the wheel of your new car.