Saving Money For A New Car in Tough Times

Finding the money for a new car can be hard, especially when times are tougher. But you may need one for various reasons if your old one is failing, not least for safety.

However, there are some things you can try, from reaching the required deposit to setting money-saving goals.

Get a Valuation of Your Old Car

The time often comes when it is time to say goodbye to your old lemon. You may have had some good times, but older cars become more of a burden than you can shoulder.

Scrapping a car is an option. But there is a good market for old vehicles, and sites like Jamjar offer free valuations of used cars. You may not get much for it, but every penny helps when you are trying to save the money needed for a shiny new vehicle. You may at least need to save for a deposit on a new car.

Focus On Deposit Money for a New Car

The deposit is often all that is required, and you usually don’t have to save the full amount of the car’s value. Of course, the more you can offer upfront, the lower your monthly payments will be through financing.

Yet you will typically be required to pay at least 10% of the total value of the new car you want. So, a standard £12,000 hatchback could cost you £1,200 upfront. To be fair, this isn’t much and is achievable if you are determined and disciplined enough to save the cash.

Saving Money for a New Car in Tough Times

Consider If you Want to Buy or Lease

Buying a new car is something you should consider because it is yours and you earned it. The feeling of getting to your goal is like nothing else. But there is another option to consider, and one that is becoming more popular these days.

Leasing cars is available if you have good credit and a clean licence. Through leasing, you basically rent a car and pay for the privilege on a monthly basis. You don’t own it, but the upside is you have access to the latest models of vehicles.

Think About What You Want or Need

A car is a very personal choice and can often be an extension of personality. However, a car is a tool, and a tool is usually used based on needs.

So, that Corvette you always wanted may not be the best choice with a baby on the way, and it helps to consider what you need the car for:

  • A family car needs to be larger than usual with space for shopping.
  • You need good mileage if you intend to use your car for holidays.
  • The geek in you might want a car with all the latest technology trends.
  • Consider the overall safety features you are looking for in a new car.
  • Can you get a new vehicle with good financing options to reduce costs?

If you do have a family, nothing can reduce the stress of travelling like a roomy vehicle.

But you do need some fun, and Bluetooth or AI-enabled vehicles can indulge your inner technophile. And always ask about the flexibility of financing to save a little money that can help with monthly bills. 

Should It be a CE, EV or Hybrid?

The UK recently announced that it would be extending the cut-off date for the sale of combustion engine vehicles. This is good news for some people, but you may want to consider future-proofing your car anyway.

An electric vehicle has multiple benefits, including being cheaper to run but costs more initially. Hybrids are a popular compromise for people looking for the best of both worlds, and Toyota is unbeatable, especially with their new hydrogen vehicles.

Set Goals for Saving Money for a New Car

Goals can always help when it comes to money matters. And you may need to set goals for a new car, given how expensive they can be. Taking the UK as an example, you can expect to pay between £112,000 and £36,000 for a hatchback all the way up to a medium-sized family car.

Decide what you can reasonably afford to pay each month without affecting your disposable income and money for essential bills. A car dealer may ask you to provide evidence for this.

Don’t Dismiss Used Vehicles

Saving Money for a New Car in Tough Times

While we are talking about new cars, a new car could also mean a nice used vehicle. It’s just better and an upgrade to what you previously had.

The used car industry has a bad reputation sometimes, but there are tons of reputable dealers out there with excellent used cars. If you can’t afford a brand new model just yet, a used car can be just as good, and you can always save for a new model over the long term as you prioritise your immediate needs.

Summary

Trading in your old vehicle helps when saving money for a new car.

You should also consider the features you need or even want. Consider upgrading to a reliable used car to save money.

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