Contributed Collaborative Post
Saving money on a purchase like a new car sounds impossible, doesn’t it? These days cars cost tens of thousands of pounds, which in a cost of living crisis is a pretty hard price to justify. But thankfully, quite a few people have been digging away at car prices for years now. Tips on saving money for a new one are free to find online, and we’ve listed three of the best down below for your convenience.
Check Your Credit Score
What’s your credit score like at the moment? If it’s in the good range, you’re going to be able to secure a loan even before you need to use it. This is known as being ‘pre approved’, and it’s a great strategy for new car owners. If you know there’s a reliable auto loan out there, that you’ll be able to steadily pay back over the next few years, you’ll be able to set your sights high and get yourself a car you really want.
So get to know your credit score, go through the full length of your credit report, and find out what a credit company will think of you when you apply for an auto loan. Even if you think your credit score is on the lower side, send in an application anyway; as long as you’re not tipping into ‘bad credit’, you have a chance of being pre approved here.
Sell Your Current Car
If you’ve still got a car in the garage somewhere, sell it and keep the cash in your new car budget. Even an older car that’s in the middle of breaking down is worth something, even if you’re just selling it for scrap or stripping parts off and selling those. You can get some money out of the transaction, and trust us, you’re going to need every penny you can get here!
So, to get the most money possible out of selling your car, make sure you know its value before you put it on the market. You can easily get your car appraised at edmunds, meaning a quote comes straight into your inbox, and then you can go from there. If there are a few zeros on the final price tag, you’ll have more than enough for a down payment on your new vehicle.
Put Away 10% of Your Monthly Income
And finally, if you want to save up as much money as possible in order to secure a car down payment, try to put away 10% of your monthly income. The average weekly pay in the UK is just over £650, meaning people are bringing home around £2600 a month.
Taking the 10% rule into action here, that means £260 should go into the savings pot by the 28th of each month. Of course, not everyone is going to be able to afford this, but getting as close to this number as possible will help.
Need a new car? Make saving affordable through these tips.
This is a contributed collaborative post
