10 Tips To Saving For A Car

In today’s guest post, Cait of Cait’s Cozy Corner is sharing 10 tips for saving for your first car! Cait’s Cozy Corner is a life and style blog based right here in the Peach State! Since I’m currently looking to buy my very first car, these tips couldn’t have come at a better time! Read on to learn how to begin your new car savings journey, and make sure you stop by Cait’s Cozy Corner and say hi!

xoxo,

Raine

When it’s time for you to buy a car, it’s a huge event! Second to buying a home and perhaps your education, it may just be one of the most expensive purchases! It can also be one of the most stressful items that you buy; negotiating with the salesman, fear of buying because it is so much money…the list can go on and go. With all your other expenses ( yes college students I’m looking at you! ) how can you justify setting aside money for an asset that depreciates as quickly as an automobile?

You’re in luck! I’m sharing 10 tips to save for your first car! Whether you’re looking for a great convertible or a reliable mini van, I have some great tips and tricks to help you out.

1. Set a Budget- I love budgeting. No really- it’s a little embarrassing how much I enjoy figuring out how I can reach a goal. Setting a budget helps you determine how much, per month you’ll need to save for your car. Don’t forget about all the other costs of ownership. Think about insurance, gas, repairs, maintenance, taxes, and registration. Determining how much you might spend monthly, or even weekly will help you choose a ride you can afford.

2. Shop Smart- There’s a difference between saving FOR a car and saving ON a car. You also want to make sure you’re getting the best deal on your car. Did you know that just 1% difference in interest rates can save you thousands over the life of the car?! This is critical if you’re going to finance your car instead of buying it outright. The lower interest rate means more money saved, lower monthly payments and better ability for you to save for other goals ( like a house ) once you’ve checked a car off your list. Many dealerships can offer to finance the car for you but it’s important to shop around first as some may not offer you the best interest rate.

3. Make It Work For You- You obviously are wanting your car to last as long as possible. How do you determine that? Just make sure you look up how reputable the car is on car review sites and magazines. Check Kelley Blue Book and Consumer Reports which pretty much do all the research for the right car for you. In addition to reviewing professional reviews, Kelley Blue Book can offer consumer reviews. These can be extremely helpful because people will provide honest feedback on how their own personal cars are holding up two, three or more years after they bought it.

4. Used or New – There are many things to consider when deciding if you want a new or used car. If you want a used car, think about the costs for maintenance and repairs. But a used car may also cost less than a new car. If the used car is still under warranty, find out if it’s transferable.  New cars often come with warranties from the dealer that can range by manufacturer. Determine your preference, research, and ask others for advice to help you decide.

5. Think about your lifestyle- Choose a car that will match your needs, not just because it looks nice. Think about the places you always go to and the reason you’re buying a car in the first place. A fancy sports car won’t work if you’re driving in snowy weather, and a big truck or SUV might not be the best choice for maneuvering around a busy city, or if you drive long distances to and from school or work.

6. Shop online- Technology makes most things a lot easier these days. Start shopping for your first car online to get an idea of what you want, and how much that will cost. If you know the dealership you want to buy from, shop on their website to make the process easier when you go there.

7. Take a test drive- When you finally see a car of interest, it’s always best to take a test drive. Use this time to see how the car feels on the road and how comfortable you are behind the wheel. You might discover that the car you thought you wanted isn’t for you after all.

8. What’s your credit score?- Knowing your credit score is important when buying a car or other big purchase.. Your credit scores help determine the interest rate you will qualify for on a loan. The better your credit, the better interest rate you’ll have. There are also many sites like CreditKarma that will give you a free credit report.

9. Down payments- Down payments aren’t required, but it can be a good idea when buying your first car. Making a down payment means you don’t have to borrow as much money, so you’ll have to borrow less after you’ve already paid down a chunk of the balance.

10. Apply for a loan- A car loan can help you decide how much you can reasonably borrow and will help you figure out how a car can fit into your monthly budget. Remember: you don’t have to buy a car that’s at the top of your price range.

**BONUS Tip**

Now that you’re finally ready to purchase your car, you also want to make sure you have a proper locksmith on hand to help you out if you’re ever locked out of your car. ( I know from experience) ! I always call STL Locksmith LLC because of their expert technicians who are trained in the field of auto locksmith services. They are reliable, professional and always quick to help when in a jam! They also are equipped with mobile workshops to handle all your needs on location day or night!