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Five budgeting tips for car loan down payments

Five budgeting tips for car loan down payments

The new year is almost upon us, 2020 vehicle models are out in force and it’s the time of year where we begin looking forward in earnest and making plans for the months to come. Now is as good a time as any to begin budgeting for your next car.

A larger down payment can lower the amount of a car loan, provide a higher chance of loan acceptance and even help overcome a less than perfect credit score. It demonstrates you are fiscally aware, can afford the payments and offers the practical advantage of reducing the amount you need to borrow to get the car you want.

Here are five ways you can easily save money:

Make your own coffee and lunch

This is a simple tip that some of us here at Car Nation Canada use ourselves. Rather than buying a sandwich or meal for lunch and buying coffee on the way in, make it yourself. You could say $5-$15 a day depending on what you do now. Multiplied over the 261 days per year the average Canadian works and you’re already up by at least $810.

Use vouchers and discount codes

Whether you still cut out vouchers from newspapers and magazines or use online voucher websites, you can save a lot of money on everyday items. The exact amount will vary a lot depending on how far you go with your couponing but you could feasibly add a couple hundred dollars to your savings over a year.

Make a list and stick to it

Do you find yourself making lots of impulse purchases when grocery shopping? Avoid that by creating a list before you leave and sticking to it. As well as reminding you of exactly what you need, it focuses the mind on the task at hand. That can be equally useful when you’re surrounded by advertising designed to make you buy.

Use a cashback credit card

Depending on where you live and availability, using a cashback credit card kills two birds with one stone. For one, it gives you a small percentage cashback on purchases. As long as you pay off your balance in full at month ends, you’re in profit. Second, using a credit card and making payments on time also helps improve your credit score. This will also save you money on a car loan.

Compare and switch

Have you been with your phone or cable provider forever? Maybe it’s time for a change. When your contracts come up for renewal, shop around. Look at the competition. Assess whether you need unlimited data or all those cable channels. Do you need cable TV at all with viable legal alternatives? This could feasibly save you $100 or more a month!

Those are just five of the many ways you can save money for a larger down payment on a new car. I’m sure you can think of others!

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