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How to Save for a Car

While getting a new car is exciting, it’s important to get one that fits into your budget. By setting money aside ahead of time, you’ll acquire the vehicle you truly want for your trips around Harrisburg, Mechanicsburg, and Trevose.

Our team at Faulkner Auto Group will give you the step-by-step process on how to save for a car. Read through the information below, and contact our finance center if you have any questions.

1. Calculate Vehicle Payments.

How to Save for a CarYou’ll first need to determine how much you can afford to spend on a car each month. Keep in mind that this includes more than just the loan or lease that you’re paying off per month. You’ll also need to factor in car-related expenses, like:

  • Taxes and fees
  • Maintenance/repairs
  • Gas
  • Auto insurance

If you’re trading in one car for another, you can use that as a down payment. Otherwise, you’ll need to put extra money aside for this purpose. It’s recommended to put 20% of a new car’s total cost down or 10% on a used vehicle. This way, you’ll have monthly car payments that you can stick with, along with a good interest rate.

2. Determine the Type of Vehicle You Want.

Once you’ve determined a monthly budget, you’ll need to think about what kind of vehicle you want. Whether you decide to go the new or used car route, it should still stay within your available funds.

How to Save for a CarYou’ll also have to decide on the type of car you want based on what you’ll primarily use it for. For example, you may need a vehicle just for yourself to get to work. In that case, a fuel-efficient sedan may work for you.

Furthermore, you’ll want to think about features you want vs. what you need. A fancy navigation system may sound great, but if you don’t plan on driving the car far, then you could do without it. On the other hand, if your town gets snow or ice in the winter, then all-wheel drive might be on your must-have list.

3. Decide When You Need a Car.

Timing is everything, including when it comes to getting a new car. If you need a new vehicle right away, then you should start saving as soon as possible. Otherwise, you may be in a situation where the amount of money you have is less than what’s needed for a down payment.

To prevent that from happening, you can do one of two things. You can either wait a few more months to get a new car, or you can get a used vehicle that fits within your current budget.

4. Start Saving.

How to Save for a CarOnce all the above variables are worked out, it’s time to start saving. Try to limit unnecessary spending as best you can. You may also want to find ways to reduce current essential expenses, like groceries and clothes.

A log is great to keep track of your spending habits. By writing down where your money goes each month, you can quickly determine which expenditures you could cut down on or eliminate.

Additionally, you can open a savings account that’s just for car payments. If your job does direct deposit, see if part of your paycheck can go directly into that account. This way, the money will get put there without you needing to think about it.

Start Saving for a Car Today!

If you follow all these steps, you’ll have the money you need for a new car in no time. And when you’re ready to get a new ride near Harrisburg, Mechanicsburg, or Trevose, contact us at Faulkner Auto Group.

We look forward to helping you find a great new automobile.