How to Budget And Save for Your Car Down Payment

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Budgeting to save for a down payment for your new car doesn’t mean you have to make major life changes. If you just put a few dollars away each day, you will have your down payment saved up in no time!  Here are some easy steps to help you save your next car down payment.

Set your Goal

First of all, you need to set a goal before you can make a plan to reach it. If you are buying a $20,000 vehicle and want to save 15% for your down payment, you will need to save $3000 total. Next you need to decide when you want to make your purchase. If you are planning on purchasing in six months, you will need to save about $16 per day or $499 a month. Now that we have a solid number, we can start eliminating spending to reach it! Please note that the amount of down payment you will need for your car varies depending on credit history and vehicle purchase. If you are not sure how much you will need to save for your down payment, contact WA Auto Credit.

Find out where your excess spending is and eliminate it

We all spend money on things we don’t really “need”. One of the easiest steps to start saving more money, is to stop spending where you don’t need to. First, you need to find out if you are overpaying on some of your monthly bills. A simple phone call to your local cable provider, or cell phone provider can save you up to hundreds of dollars each month. Next, you will need to figure out where your excess daily spending is. Do you have a daily trip to the espresso stand or go out to lunch? (Starbucks?) Making coffee at home, and packing a lunch to work can add up to help you save a lot of money each month!

For example, let’s assume you spend $3 for a latte and $10 for lunch each day at work. If you work 20 days a month, that equals $260 in total monthly spending! Coffee brewed at home costs about .27 a cup, and you can easily make a home packed lunch for around $2 a day. If you choose this route instead, you can save around $214 a month towards your down payment.

Consider getting a second job

If you tried cutting your fixed bills and daily spending, but the money still isn’t adding up, consider getting a second job. Making a little excess money can be as easy as mowing your neighbor’s lawn on the weekend, or picking up a night shift at a local restaurant. There are also many ways to make additional money online by taking surveys, driving for Uber, or by opening your own online store. Finding extra ways to make cash online is as just a Google search away. 

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