Published on March 19th, 2022 | by Bibhuranjan

7 Easy Ways to Save Money on Your Car Financing

It is better to save for a vehicle than take out a loan. In the end, this might save you hundreds of dollars in interest fees at the dealership. Discipline is required, but if you stick with it, you may be able to save the majority of your down payment in as little as a few months.

1. Make a Down Payment Calculation

Estimate your deposit after you’ve determined your car’s pricing range. Set a budget and compare a few brands and models to see whether they are feasible. Aim for a 20% or 10% downpayment on new and second-hand cars.

The more money you raise on your own, the better bargain you’ll receive in the long run. A lower interest rate and more manageable monthly payments might be yours if you put down a larger deposit when applying for a loan.

2. Make a Car-Related Expenses Budget

According to NerdWallet, a 50/30/20 budget is the best way to invest. 50% of your monthly income toward essentials, 30% toward luxuries, and 20% toward debt repayment and savings.

Choosing whether or not to include car savings in your budget’s necessities or wants category might be a challenge, but consider this: An older model automobile with basic amenities will get you to work just as well as a newer one with more advanced features.

3. Limit Unnecessary Spending

Don’t waste money on other things when you’re saving for a big purchase like a vehicle. Cutting down on “wants” for a while and looking for methods to lower your present expenditures, like cable and food, will help you save money. Set aside the savings for a down payment on a new vehicle.

Without a clear understanding of where your money is spent, you may spend several hundred dollars each month on small items without even recognising it. However, if you keep track of your spending, you can identify trouble areas, and you’re more likely to think twice before purchasing if you have to write it down.

4. Set Up A Savings Account

Having decided how much money you should put away, the next step is to find a secure place for it. To avoid the temptation to dig into your savings for other uses, you may want to create a separate account.

Get the best deal, shop around. Invest your money in high-interest savings and fixed deposits for a few years. According to some experts, interest rates on internet accounts may be 150 times greater than those on regular bank accounts. Keep these funds in reserve until you’re ready to purchase the car.

5. Automate Your Savings

You should make regular contributions to your savings account. Automatic transfers from your checking account using your bank’s website or a dedicated third-party app may let you do this with little effort.

You can apply for Viva Loans, an online financing company that connects you with low-interest loan providers if you still need financial assistance. You may complete the short application process entirely online at the website vivaloans.co.uk/apply.

6. Sell Or Trade-In Your Current Car

Are you looking to replace an outdated vehicle? You may either sell or trade it in for a better car.

Selling it yourself will almost certainly net you more money, but it will take more time and effort,” Moody explains.

Please make use of appraisal tools to evaluate the worth of your automobile so that you can determine how much it may contribute to your savings account. If your prior vehicle was wrecked, your insurance company might have provided a reimbursement check to pay for a new car, either entirely or partly.

7. Pick Up A Side Hustle

Consider strategies to generate extra money to address any of your savings shortfalls. You may speed up your development by taking on a part-time job, but be sure it is reputable and worth your time before committing.

Having a second job gives you greater financial and time independence. You may begin to appreciate the freedom of not being entirely dependent on the cash from your day job.

Bottom Line

While payday loans may be more expensive than regular loans, they’re your best bet when you need fast cash.

Viva Loans may be helpful in times of need, mainly if your credit score is bad and you cannot get a loan from a more traditional lender.

However, you must research extensively to establish your finest payday loan choices before deciding on a specific lender.

Cover Image by Freepik

Tags: car loans, money, savings

About the Author

Bibhuranjan Editorial Officer, technofaq.org I'm an avid tech enthusiast at heart. I like to mug up on new and exciting developments on science and tech and have a deep love for PC gaming. Other hobbies include writing blog posts, music and DIY projects.