5 Ways to Save Money for Your Very First Car
You’ve been waiting for the moment you’ll own your first car since you were a little kid. And now that the dream finally comes true, you need to learn how to save money for and while having your very first car. There are several options to finance your car, some of them being PCP, PHC, and Hire Purchase. The best car finance option depends on your preferences, the type of car you want to purchase, the price, long-term goals, etc. While owning a car is a great milestone, you need to save sufficiently to accomplish the aspiration. And with the fluctuating market costs, you can consider some of these ways to save for your car.
Choose the Car
Think about why do you want to purchase that particular type of car. Whether you need to drive to college or work, have a bigger family and you need to drive your children, or you just want to buy a second-hand car. If you need the car only to drive to work or college, a small car is more than enough. In case you have children and want to fit all of the family, you will need a bigger vehicle. The new car purchase comes with some pros and cons. Some of the positive things include minimal repairs which mean you’ll spend money on regular maintenance only. New vehicles are more efficient and you will save more fuel in the long run, it’s covered under warranty and insurance and you can access roadside assistance if you get stranded on the road.
Some of the cons when owning a new car include expensive affair, depreciation by 25%, higher debt if you purchase the car by loan, and higher insurance premium. Familiarize yourself with the automotive industry as much as you can. Conduct a bit of research about the model of the car, and learn about interest rates, fuel efficiency, car depreciation, and safety innovation. Choosing the type of car can save you a lot of money, so make sure you’ve taken all considerations into account when making the purchase.
Open Fixed Savings Account
First of all, you need to create a safe space for storing your savings. We can recommend that you open a savings account with strict conditions on how you can access the savings. This is for the purpose so you don’t have easy access to your money all the time. If you are on vacation, social event, or birthday party, you won’t feel like you need to withdraw money from the account.
Avoid Excessive Spending
Another thing to have on your mind is your credit score. Credit cards are a great catch for those who purchase a car for the first time. Even though you will need a high score to secure a proper way of financing your car, you’ll realize that limiting your credit card while shopping can be rewarding. The more debt you make, the harder it will be for you to save money.
Consider All of the Expenses
Do not obsess over having the newest car model as you are thriving in life. If a single person lives on a fixed income, that person would want the ar to make sense for their lifestyle. It’s totally illogical and unreasonable to purchase a car off your limits and having to deal with the stress of debt and high monthly installments for long periods of time.
Remember that this is your first car and you need to think about all of the other expenses before you make the purchase. Costs like fuel, insurance, regular maintenance, gear change, and repair, etc. are some of the nuances you need to consider. Owning a vehicle is much similar to taking out a loan or buying a home. It’s an investment that comes with accumulating costs, so before you sign any papers, put aside some funds and check for the best insurance rates.
Think of Ways to Supplement Your Income
Well, probably this could have been the first thing to write in this article, but you need to think of additional ways to supplement your income. If you want to save for a car, first of all you need to have a job. And make sure that the income from that job is sufficient to cover any debt you might have, immediate expenses, and save for retirement. Only then you can put away funds to make your first car purchase.
You can supplement the income by securing a second gig and working besides your full-time job, work as a freelancer on projects like content writing, designing, data processing, etc. If you have good handcraft skills, you can make homemade items and sell them. There are a lot of ways to do it, so you can check some of the best side hustles nowadays. And for this you need stable connection to avoid any internet connection error.
