Is there a car that makes your head turn?
That gleaming car of your dream that can catch your eye in any distracting traffic jam. How long have you been fantasizing about owning that car?
Well, as you already know, dreaming alone is not enough for you to sit behind that wheel in reality. The good thing is that you know exactly what you want and we are here to tell you how to achieve it.
As daunting as the big figures might seem, it is not impossible to save up any big amount with small conscious steps. Regardless of what your income is, you can always consistently stash some money away with these practical tips.
Accept That a Car Is Not an Investment
Not to discourage you right away, but it is significant before you make a dent in your bank account to understand that a car is not an investment.
There are many types of investment. Students hiring writers at EssayPro for college work or signing up for an online course make investments that will help them excel in academics in the long run. Getting back to our topic, the moment you take the new car out, its value drops tremendously.
In fact, in the first four years, a new car loses 60% of its value. Before you set aside money for this cause, it is important to understand that a car is not an investment. So it is for your personal enjoyment and passion for cars.
Focus on the End Point
The most common answer to why someone is not buying their favorite car is “Oh, it costs so and so.” So let us first get a clear idea of what is this “so and so.”
Start from finding out how much the car would actually cost and exactly how much money you need to save up.
The process of backward goal-setting process works efficiently with a clear endpoint in mind. By reversing the direction of planning, you will start thinking from a new perspective on completing each milestone to accomplishing the goal of possessing your dream car.
Find out More on Financing
One might wonder that when there is financing available, why should you even save up. Why can’t you start paying the installments and have the car now rather than wait for months to save up and then buy one?
The question of which is more beneficial depends on a number of factors such as the offer and the interest you would be paying. You should also check with different banks and compare the rates.
Depending on the interest, you will know whether it is better paying for the car with your cash or financing it. But remember, even with financing, you will need to save up some amount to pay the loan.
If you are ready to hold off for a year, you would be able to forgo the payments as well as save some money to aide the purchase.
Boost Your Credit Score
In the scenario that you are looking for financing, investing in a good credit score might be the best approach. Without one, you will be facing high-interest rates and a very low price point. There are different ways to raise your credit score without much trouble.
Check whether you can eliminate old debts, and start paying off the small amounts first.
While you are focused on paying off debts, it might not be possible simultaneously to save as much money as you would like. But having savings could also help you in increasing your score and beat debt.
Be Aware of Your Expenses
There is no way of budgeting if you do not know how much you are actually spending. If you do not already track your expenses, start it right away.
It is a step that is going to benefit several areas of life. With every expense accounted for, you will have a clear picture of your spending habits.
It will also help you identify which places you can save money. Even something as small as choosing not to buy a cup of coffee every day could make a difference.
Work on Your Income Sources
Probably the most obvious way to save more money is to make more money.
A second income does not necessarily mean another job. If you have the time to spare, there are many ways to earn more right from the comfort of your home. Now with the gig economy on the rise, plenty of opportunities are available to convert your hobbies into paid jobs.
There are several websites where you can sign up as a freelancer and offer your services with any skills you have. You can also start your own business, blog, or drop-shipping that will act as a supplement for your income.
So it is for your personal enjoyment and passion for cars. You definitely do build equity in your car, which could be used for car title loans, but vehicles are depreciating assets.
Be Prepared for the Unexpected
If you feel that you are equipped to make a purchase, be sure to check up the contingency as well. There might be other expenses and hidden costs that come along the way. Save a little extra, so you do not have to tap into your emergency funds.
While buying a new car is certainly an accomplishment, it is not wise to spend all your life savings on it. Even after you buy your car, continue the same strategies to save and invest in your future.
If you ever get into an accident, an NJ car accident lawyer can help you with your or the other party’s insurance.
On the Last Note: Find the Right Deal
According to car experts, you get the best deals from individuals, not car dealers. Your dream car might be someone else’s spare car, and they might be desperate to sell it. With a thorough cleaning and polishing, it is as good as new, and you would be saving thousands of dollars on the purchase.
You can also check out auctions. Before you make deals with individuals or dealers, make sure that you are thoroughly prepared and know the value of the car. It might take one, two, or even six months to land a right and beneficial deal.
It might be difficult to say no to deals when it comes to your dream car, but it is worth to wait for the right pitch.
By getting your finances in order, your dream car need not remain a dream. It could soon be right there in your garage.