Everyone knows cars are expensive. A car payment is considered one of the biggest monthly budget items after mortgage or rent payments. Because the expense of a new car is so high, it’s important to save for a decent sized down payment before you purchase your vehicle. After all, the higher your down payment, the less you have to pay towards your loan each month.
Many people struggle to save for a down payment, though. To help make the process of buying a vehicle easier for you, here are a few tips on how to save for a down payment on a car.
Calculate the right car payment for your budget.
Before you even begin shopping for a new vehicle, it’s important to calculate how much you can afford to spend each month on a car payment. If your budget only allows for $150 a month to go towards a new car, it’s likely you should save more money for your down payment. When calculating this payment, make sure you include some wiggle room for maintenance or changes in insurance.
Figure out how much money to put down.
Use the Gateway Easy Auto Credit Help Payment Calculator to determine how much of a down payment you need in order to receive your calculated monthly payment. Depending on the interest rate and the loan term, the down payment may vary, so consider these factors, too, as you make your calculations.
Work out a timeline for buying.
The sooner you want (or need) the car, the faster you will have to save. If you plan on putting a down payment of $4,000 down and you only have $500 in your savings account, you won’t be able to go out and purchase a car in two days. Instead, delay your purchase as long as possible until you have the right amount of savings for a down payment with some left over just in case.
Reduce your monthly expenses.
Cut down on the amount of frivolous spending from your monthly budget, including going out to eat, purchasing new clothes (unless they’re needed), and buying things online. Also, consider shopping around for new cable, internet, cell phone, and insurance providers. You might be able to find a lower rate on these monthly expenses, which will help you increase the money you save each month.
With these simple tips, you can easily save for a down payment on a car. Once you’re ready to go, stop in to Gateway Easy Auto Credit Help of St. Louis, MO to check out what Buick and GMC models we have to offer. Or give us a call at 888.385.2261 for more tips!
*Buick/GMC rebates and dealer discounts included in sale price, if discount is shown, see dealer for details.
*Price does not include taxes, license and title fees, or documentation fees. EPA estimates only. Please call for more information.
820 James S. McDonnell Boulevard, Hazelwood, MO, 63042 (888) 385-2261