Saving For Your First Car:
Whether you’re looking to buy a brand new tricked out ride that Xzibit would be jealous of, or a rusted-out beater that you have to kick the rear tire while jiggling the key to start – you’ve got to pay for it somehow.
We’ve put together a quick how-to-guide to help you save those De Niros so you can hit the drive thru yourself without mom saying you can’t have three desserts.
Ask yourself – what’s your budget.
- Are you going to save up the moola and buy the car outright? OR
- Are you going to save for a down payment and then make regular payments?
Don’t forget that you’re going to need gas, oil changes, maintenance, registration and a sick pair of fuzzy dice. It all adds up. Make sure to include those costs in your monthly budget.
Once you’ve figured out what you can spend, it will help you decide if you can get a brand-new DeLorean with a top of the line Flux Capacitor, or a Fred Flintstone ride.
Crunch the numbers.
If you’ve decided to make a monthly payment, now you’ll have to figure out what your down payment is going to be. If you’re going to pay for the whole thing at once, skip ahead to number 3. There are lots of online tools that can help. Some good ones we found are:
Now you have a goal. A rule of thumb is to have at least 20% of the total price ready as a down payment. You’ll also be able to figure out when you’ll have enough for the down payment based on how much you can save monthly.
- Set it up to happen automatically. If you get paid by direct deposit, let your payroll department know you want $XXX deposited into your savings account. This is ideal because it happens on it’s own and you don’t have to scrutinize everything else you want to buy. Set it and forget it.
- If you don’t have direct deposit, you’re going to have to make it happen. As soon as you get paid, take that chunk and put it in your savings account.
That’s it! Figure out what your goal is and start saving. You’ll be hitting the road before you know it!
For those of you in Florida, the first step to getting behind the wheel is by taking the #TLSAE