Strategies for Saving for a Brand-New Vehicle

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There is something undeniably appealing about the smell of brand-new leather and the impeccable shine and cleanliness of a brand-new vehicle. Between 74 and 78 million new vehicles are sold worldwide. Many are currently making the switch to plug-in electric or smaller cars that do their share for the environment while providing the required speed and power. If you think it’s time to invest in a new ride, keep the following considerations in mind.

 

Creating a Savings Target

When you buy a new vehicle, manufacturers often ask you to leave a significant downpayment (20% more or less). Therefore, once you have drafted your list of desired vehicles, calculate how much you will need to save for each. To help things along, create a separate savings account for your car, so you can make sure it grows by the rate it needs to, so you can buy your car when you want to. You should also calculate the monthly quota for each respective car. Calculate your monthly expenses and see whether specific quotas will enable you to meet your other expenses and save for other goals such as buying a home or paying back a student loan.

 

Looking into Leasing

Buying a car means you have legal ownership of it, and you can sell it when you wish to upgrade it. Calculate how much you think you could resell your car in five years. Cars deprecate fastest in the first year (during which they lose around 20% of their value). After that, they lose around 15% of their value per year. A leasing arrangement (which generally involves a smaller monthly quota) may be more desirable if you enjoy having a new car every four or five years. When you are done with your payments, you will have nothing to sell, but at least you haven’t had to make a big downpayment. You can easily calculate the ultimate cost of both options with the help of online calculators.

 

Checking Out What Car-Buying Services Can Offer You

If you dread the time wastage involved in visiting different dealerships, a vehicle buying program will help you identify a few good deals. Through popular auto-buying programs like Sam’s Club or Costco auto, you can state your ideal car model and features and the company searchers for a match with a certified dealer. One bonus of relying on this system is that the professionals you are dealing with will be able to give you advice about ‘best in class’ vehicles or suggest vehicles that may be up your street. Because they do not represent a specific car marque, you know the advice they are giving is independent.

 

Picking Up Freelance Work

If you find that your current salary or income is simply too small to enable you to afford the car you want and need, and you find that you will need a few extra hundred dollars to make payments comfortably, consider a freelance gig or a part-time job. There are many opportunities for creative freelance workers like writers, designers, and photographers. If you have to, invest in any required training. Wedding photography, for instance, can be very lucrative as a profession but your images need to be 100% professional looking, and your service has to match your talent.

 

Saving for a car begins with crunching numbers and seeing how much you can afford to pay monthly. It also involves saving for a downpayment, unless you are looking into leasing. Finally, consider enlisting the aid of concierges and other professionals who can conduct searches on your behalf and recommend new models you may not have been aware of.