How To Save For A New Car In Woodstock

How To Save For A New Car In Woodstock

Posted on March 30, 2021

Cars are steadily becoming more expensive. New features, new fuels, new motors and new safety technology all takes money to develop, which is passed on to buyers through the price. If you're wanting to save for a new car or a down payment on a Woodstock auto loan, this post might help.

We’re covering simple ways to save for a new car.

We appreciate that not everyone will be in a position to save much each month. That’s fine.

What we would say is even saving $20-30 per month will help. It will create an emergency fund to help out if you need it and form part of the down payment if you don’t.

Set a budget

Budgeting is a core element of household finance. Without knowing what’s coming in and what’s going out, you have no chance to identify savings or know how much you could save.

Your budget doesn’t have to be complicated. A simple two column spreadsheet should suffice.

Have your income in one column and outgoings in the other. Hopefully, the first column will be higher than the second!

Once you can see in black and white what’s going on, you should be able to see whether you could afford a new car or a car loan.

Identify easy savings

We all have little things we buy without noticing. A newspaper on the way to work, a coffee every time we buy gas, buying breakfast in the work canteen or something else.

These are all savings we could make without them impacting our lives too much. Make your own coffee, read the news online, make your own breakfast, lift share with a colleague, shop around for cheaper gas, there are multiple ways to save money.

Saving just a few dollars a day by making your own breakfast or eating before you leave home could mount up to a lot over the working year, allowing you to properly save for a new car.

Identify all your debts

By creating a budget spreadsheet, you have likely identified all your debts. Now it’s time to list those separately. List everything you own in order or interest rate. Don’t do it by amount owed but by the interest rate you’re paying, highest first.

Depending on the amounts in question, paying off the most expensive debt first will save the most money in interest. If the amounts differ a lot, do the maths to see which is the most expensive to service each month and prioritize paying that off.

Not only will it lower your income to debt ratio, it will also reduce the total amount you’ll pay. That alone is worth creating a budget for!

Set up automatic savings

Once you have your budget in order, you should be able to identify an amount each month you could comfortably save. Set up a savings account if you don’t already have one and set up an automatic payment each month to save.

Doing it automatically means you won’t forget, you won’t be tempted to spend it elsewhere and you stand a much higher chance of saving for a down payment or to pay off any debt.

Once you have your down payment, contact our Woodstock auto loan team. We would be happy to help!

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

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