Helpful tips for saving money to buy your first car
When you are in a good financial position and you’ve passed your driving licence, buying a car would naturally be the next step.
Having your own vehicle is crucial especially in today’s fast-paced society.
When you have your own car it is more convenient for travelling to work and running errands.
Travelling with public transport in South Africa can be stressful because there are incidents which you don’t have control over such as strikes and operational issues. Cars are expensive and that’s why most people don’t have cars. You can’t buy on impulse. You have to budget well in order for you to avoid financial strain.
Below are helpful tips on how you can own your dream car
Know what type of car you would like to buy
It’s important to have some sort of an idea of what you are looking for. There is a large variety of cars for sale, whether it is a brand new one or certified pre-owned car.
When buying a vehicle, you don’t have to buy a brand new one because there are plenty of good quality second-hand cars available. You could find a previously used BMW for sale, or even a Mercedes Benz or Volkswagen. If you are planning on buying a BMW, you can get your dream car at a lower price by purchasing a BMW pre-owned car.
There are many BMW used cars you can choose from such as a BMW 3 Series or a BMW X5 with helpful features like:
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Cruise control
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Leather seats
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Central locking
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Alloy wheels
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Electric mirrors
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Electric windows
Consider the cost of maintaining your new vehicle
Before going out to your car dealer you should always consider the cost to maintain your vehicle. The last thing you want to do to yourself is to buy a car and then struggle to maintain it. Maintenance includes car insurance, vehicle registration, servicing, repairs and petrol.
You need to budget carefully and plan how you will be able to pay for all these items as they are important.
Create a budget
When making a big purchase it is always beneficial to have a financial plan for everything. Once you have worked out your budget It would be best for you to open up a savings account.
A savings account will help you save towards your upfront payment. A large upfront payment will help lower your instalment.
After going through your income and expenses, calculate how much you can afford to save monthly. In order for you to buy the car, you want to try, by all means necessary, to stick to your budget. Once that is sorted you can go to a financial institution.
Reduce the amount of money you spend
By not spending your money on the latest fashion or technology you can save more money. Try to spend money on things that you need like rent, groceries and other essentials. Cut back on your wants, for example, if you are a book lover choosing to rather go to the library or get the books online instead of purchasing a new book. More importantly, practise intentional buying rather than impulse buying because that will hinder your process of saving money.
Find ways to earn more money
Another helpful tip on saving money for your new car is to earn some extra money. You could either get a second job in the evening such as tutoring or babysitting and that money will go towards your savings. You could also work overtime at work or have a garage sale. Not only will a garage sale push you closer towards your dream car but it can also help you clean out your home.
Get financial assistance
Saving to buy a car in cash isn’t something you can do easily, there are financial institutions which can offer you a car loan. Always remember that a smart financial decision would be to save up some money for a deposit.
Always do your research first before and go to different banks in order for you to find a loan which works for you.
Avoid extra add-ons
You’ve budgeted and saved successfully. It’s time for you to choose your new car. When buying a car, as much as you would like to follow your heart, be sure to take your head with you. If your budget doesn’t allow you to get extra add-ons such as such as a sunroof or bigger wheels, don’t get them because it’s not a need.
Buy your car at the right time
The best time to negotiate with a dealership is at the end of the month. At the end of the month, you could get a great deal because the car dealership is trying to meet their sales targets for that month. The same thing applies when you purchase a vehicle at the end of the year. You might pay less because dealers are trying to sell their remaining stock in order for them to reach their year-end targets.