The purchase of a car, even a used car, requires a good amount of money. Unless you have the cash to buy a car up front, you probably have to save for one. Don’t wait until you find a car you want before you start putting away cash. If you want to buy a car in the future, save now. That way, should you find your dream car one of these days, you’ll be ready with enough money to actually drive it home. Here are practical ways on how you can start saving for your dream used car today:
Find your figure
Before you begin putting away money for the purchase of your dream used car, find out how much it will actually cost. A good way to find out is to determine available makes, models, year and brands. Compare units for sale at your local used car lot. There are also several online sites you can use that allow you to search used cars based on certain categories you set. The results will also produce prices for these cars so you have a good idea about how much money you need to save.
Take note that when buying your dream used car, the price offered by the dealer are inclusive of the warranties. Other stuff, such as service contracts, are charged extra so make room for other expenses such as these.
Have a plan
The point of making a plan is to know exactly the time it would take for you to save up the amount you need. Let’s say you prefer to pay cash and the price range for your dream car is from $12,000 to $16,000. If you can save $300 a month, you’ll be able to save about 30% of the total amount you need by the end of the year.
Find other sources of income
You could save as much money as you can from your regular job but it would be a good idea to find an extra source of income. If you want to save for your dream used car, put away all the money you earn from other jobs or income sources. Remember that an extra $50 will still be $50 less than what you’ll need at the end of the year. By putting away as much money as you can spare, you should be able to get the used car of your dreams within only a short span of time.
When the time comes to buy your dream used car, consider paying cash. You can take advantage of discounts the seller may be offering and avoid paying extra for interests.