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.

4 Terms to Know When Buying a Used Car

Buying a Used Car | DAG Blog | Toronto, ON
Happy couple talking with mature customer service representative in a showroom.

So, you’ve done it — you’ve decided that you want to purchase a used car. Before you begin the process of purchasing, though, it’s important that you understand the specific terminology that come with buying a used car.

  1. Equity: If you’re trading in your own vehicle, you might still owe money on it. If the money you owe happens to be less than the trade-in is worth, then you have equity on the vehicle. This equity can likely be applied to the purchase price of your new used vehicle.
  2. Wholesale Value: Also known as the trade-in value, this term applies to the amount you can expect your trade-in car to receive from a wholesaler or re-seller (a dealership). The wholesale value of your car will vary based on multiple factors.
  3. Down Payment: When you choose the used car you want to purchase, unless you’re paying for the vehicle entirely in cash, you will likely have to make a down payment. This is a one-time payment made towards the purchase price of your used vehicle, helping to reduce the monthly payment amounts of your loan.
  4. Finance: If you opt for a loan to purchase your new used vehicle, you will be financing the vehicle. This means a lender will pay for the up-front purchase and you will receive a loan that you’ll repay over time.

To learn more, contact one of our location’s finance department as a part of the Downtown Autogroup. We’ll be happy to walk you through what you need to know to purchase a pre-owned ride.