How To Easily Save For A Car Down Payment In Brantford

How To Easily Save For A Car Down Payment In Brantford

Posted on May 26, 2021

The down payment is a significant part of any car loan application. It can make a genuine difference in whether you’re accepted or not and can significantly reduce the amount of loan you need to get. But how can you easily save for a car down payment with everything else that’s going on with the average Canadian?

Our Brantford auto loan team outlines some practical ways you can easily save for a car down payment.

Figure out your finances

Your first step is to create a budget and use that to decide how much you can afford to save each month. Create a spreadsheet with your income in one column, outgoings in another and debt in a third.

Add everything together until you have a complete picture of your finances. This should show you in black and white where you are and how much you can afford to save each month.

The budget will also influence your car loan and how much you will be able to spend on a car. These can also influence how much of a down payment you’ll need.

Set up automatic savings

Once you know how much you can afford to save each month, you need to make sure you save that amount. The easiest way to do that is to set up automatic savings to a separate account.

Have the amount taken from your account as soon as you’re paid. If you have anything left over at the end of the month, add that to savings too.

Even if it’s $20-$30 a month you’re putting into savings, at least it’s something.

Identify areas you could save

Every household has things they spend money on without realizing it, which is why budgeting is such a useful tool. If you make sure to include every single outgoing, you’ll quickly identify areas where you could make savings.

Whether that’s gym membership you never use, cable TV package you never watch, subscription services you forgot about or something else, we all have savings we can make.

Identify yours and stop that payment. Add whatever you save to automatic savings to speed up the down payment.

Sell your old stuff

Have a Star Wars collection gathering dust? Have some clothes in good condition that no longer fit? Have stuff laying around the house that someone might like to buy?

Selling your old stuff will take time and effort but can be fun. It can also be lucrative. Look for specialist websites for items like Star Wars or other collectables. Or use eBay or other used marketplaces to sell your old items.

You would be surprised at how much money can be made with a little effort!

Earn a little extra

Depending on where you live and what you do, getting a side job can also boost your down payment savings plan. Whether that’s driving for as ride share, delivering takeaway, doing extra shifts at work or getting a separate side job.

There are opportunities out there if you know where to look and are willing to put in the hours. It will be hard work and will take willpower to stay the course but can also be a worthwhile way to earn a little extra.

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

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