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How Can I Save For A New Car In Oshweken?

How Can I Save For A New Car In Oshweken?

New cars are becoming steadily more expensive. Even the used car market isn’t quite full of the same bargains it used to be. All that means you need to spend more on a car than you used to, and have to save for a new car for longer.

 

That’s where savings come in. Along with an Ohsweken auto loan, a larger down payment helps lower the amount you have to borrow and your monthly payments. Two good reasons to save!

 

Saving isn’t always easy though. Not everyone has disposable income or the willpower to save every month. We may know we should do it and we know it’s good for us but that doesn’t make it easy.

 

Hopefully, this five step savings program will make it easy to save for a new car!

 

Step 1 – Set a budget to save for a new car

 

Knowing in advance how much you’re planning to spend can help put the need for savings into perspective. If you need specific features in a car, price them up, calculate the approximate cost of the car and work backwards from there.

 

The total cost of the car will of course dictate how much of a car loan you’ll need. Which will tell you how much you’ll be paying per month. Use a car loan calculator to work out how much you can afford each month. This should then tell you the amount you can borrow.

 

The difference between the two will be how much you’ll need to save.

 

Step 2 – Analyze your outgoings

 

Another side of budgeting is assessing your income and outgoings to identify savings you could make. We all spend on things we aren’t conscious of so creating a budget spreadsheet and listing every income and everything you spend money on in an average month will overcome that.

 

Identify easy savings you could make and allocate that money to savings. Cut as much as you’re comfortable with while still maintaining a good standard of living to come up with a figure you could realistically raise month to month.

 

Then divide the amount you need to save from Step 1 to see how long you’ll need to save for.

 

Step 3 – Set the date

 

Setting the date and then telling people about it is a psychological trick used to help drive willpower.

 

Having a specific date in mind to buy the new car makes it more tangible. Telling people about your plans adds more impetus to achieve it as we don’t usually want to be seen to fail by friends and family.

 

Both are surprisingly effective methods of achieving things and can be useful when used sparingly.

 

Step 4 – Automate your savings

 

Now you have an amount, a target sum and target date, now it’s time to automate your savings. Set up an automatic payment every month the day after you get paid to send money into a savings account.

 

Automatic savings takes the human element out of the equation. You won’t forget. You won’t change your mind. You won’t back down. Everything will be done for you and the money will be gone from your account like all your other bills.

 

Step 5 – Stay strong!

 

Saving is a gradual process and takes time. Depending on how much you can afford to save each month, it could take months or it could take years. This is where willpower comes in.

 

Stay the course, have your end goal in mind and keep saving. Your new car depends on it!

 

If you need help or advice on anything to do with auto loans in Ohsweken, contact Car Nation Canada today, we can help!

 

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