Saving Up for Car? Try These Tips

Saving Up for Car? Try These Tips | Toronto, ON

Whether your old vehicle has finally given up the ghost or you simply want a new ride, saving up for a car is a big endeavour. That’s why we’ve come up with some tips to help you stockpile the money for your next set of wheels.

Calculate your budget. Before you begin saving, it’s important to know what you can afford so you can set a specific goal. Remember to include ownership costs like routine maintenance, gas, and insurance into your budget. Aim for a 10 percent down payment on a used vehicle or 20 percent on a new one.

Reduce unnecessary spending. Consider cutting back on the money you spend on “wants” and instead diverting that money towards your car savings.

Automate your savings. After you have set up a savings account specifically for your car savings, make sure you regularly contribute to it. You can do so by automatically sending transfers from your checking account to your savings account when you get paid, making it easy to accumulate that money without having to do any extra work.

Sell or trade in your old car. One of the best ways to grow a nest egg for a new car is to sell or trade in your old one. Get an estimate of your car’s value so you know how much it will give you to add to your savings fund.

When you’re ready to buy, contact one of our Downtown Autogroup locations — you’re sure to find a great vehicle here, whether you’re seeking a sedan, a crossover, or a truck.