3 Tips for Saving for a New Vehicle | St. Johns Bank

Whether you want your dream car or just a reliable daily driver, buying a car can be expensive. If it’s time for you to purchase a new vehicle or you just want to start planning ahead, follow these three tips to create a savings plan and make a wise financial decision to you can afford the car you want!

1. Create a Dedicated Savings Account

Open a savings account specifically for your new car. This will make the saving process much easier.

This dedicated fund will help you track your progress and resist the temptation to dip into the savings for other expenses. It will also show you visually how much you have saved and how far you have left before you reach your goal—instead of your vehicle funds being mixed up with your regular savings.

Be sure you know how much you can afford and whether you want to pay in cash or put a down payment down. Knowing what your end goal is will help.

2. Tighten Your Budget

When you want something new that is expensive, it is wise to make sacrifices in other areas of your finances. Review your monthly budget when saving for a new vehicle, and identify areas where you can cut back on unnecessary expenses and prioritize your needs over wants.

Consider cooking at home instead of dining out and canceling subscription services you rarely use. Reevaluating your spending and budget will help you reach your new car savings goal faster.

3. Send Extra Cash to Savings

Make sure you are thoughtful with the extra cash you might receive. Tax refunds, work bonuses, birthday money or any additional money offer an excellent opportunity to boost your car savings. Be diligent in transferring this money to your dedicated car fund, and you will be one step closer to reaching your goals!

Purchasing a new vehicle is exciting, but don’t allow this large purchase to create too much debt. Follow these tips to save appropriately and wisely so when your perfect car rolls up, you’re ready.

Are you ready for a new vehicle? We offer competitive loan rates. Contact us today, or apply here to get started!