5 Tips for saving down payment in Port Dover

5 Tips for saving down payment in Port Dover

Posted on July 13, 2022

A car down payment is a percentage of the entire cost you pay up front to qualify for the loan. In most cases, these down payments are a set percentage but you can negotiate.

How do we now save up to pay for the down payment? How can we achieve our goals?

The points below are some tips from our Port Dover auto loans team to help you in your quest to save for a down payment.

What are the tips to help saving for down payment?

You must prioritize: When saving for something as important as a car, it must be all about priorities. You must be able to decide that saving up for this cause comes first before any other luxury.

You must be able to decide which is more important and follow whatever saving plan you have for yourself religiously.

Establish a separate saving account: Establishing a separate account for the cause you assigned it for is one of the steps in the right direction. This helps you focus mainly on your savings and not to make unnecessary withdrawals from them.

It is also advised that when such an account has been created, its contribution should be made automatically, and it should be a fixed account.

Look for cheaper ways to do things: This has been regarded as one of the best ways to save money. Many smart people have saved a lot of money by implementing this method.

You are to find a cheaper way of living your lifestyle without affecting your level of fun. For instance, you can rent a book instead of purchasing it. Also, you can make homemade meals instead of eating out.

These would help you save a lot more to reach your target in no time.

Use a tax-free saving account: The tax-free savings account is one of the best places that one can save for your down payment. Money saved in this account can grow conveniently.

In this account, there is no payment of income tax on money saved. Also, some accounts have a high percentage interest rate which will help your money grow. Saving in such an account would be a smart option also.

Speak with a professional: There is a lot of knowledge about managing finances we don't have. Meeting physically with a professional and giving them the necessary documents they need to access your life is a good step in achieving your goal.

The discussion you have with a professional during consultation would help shape your decision and bring you closer to your goal. Professionals can also help encourage whenever saving for a down payment seems overwhelming.

How much should you save for a down payment?

Down payments generally are dependent on how many per cent is struck during the deal. However, in most cases, the amount requested is 20%.

Also, it is advised to pay over 20% if possible. This would reduce the interest rate and monthly payments, making it a much easier task to pay in the future.

When you’re ready for a car lease or loan, get in touch with the Port Dover auto loan experts at Northway Ford for great deals on auto finance.