How To Save Up For Your First Car

Buying a new car is a dream for many people as soon as they are old enough to drive. After all, owning a car gives you more freedom and independence. However, in today’s economy, most people can’t afford to learn to drive- let alone buy a car- until they are in their twenties. If you’re looking to start saving for your first car now, our team at Wizzcash have got some handy tips for you.

Decide Your Budget

First things first, you need to be realistic about what you can afford and set yourself budget. If you’re clueless about cars, this will involve doing some research about good first-time buys. If you’ve got friends or siblings that are already driving, ask them about their cars and find out if you should be looking for something similar. Be realistic about what you need, if you’re just buying a car for commuting and recreational use, do you need four doors and a large boot? Unless you’ve won the lottery recently, you’re not going to be looking at buying a brand new Audi!

Set Up a Savings Account

If you haven’t already got one, you need a savings account. This will help to keep your savings clear-cut in your mind and you won’t be tempted to overspend or dip into your car savings every time money gets a bit low. Depending on the bank you use, your savings account might have a better rate of interest than your everyday account.

Change Your Spending Habits

Regardless of how much you’re earning, you need to evaluate your spending habits in order to be able to afford a car. There are always ways you can change the amount you spend every month, whether it’s skipping out on your daily meal deal in favour of making your own lunch, or switching your mobile phone provider. Next time you feel tempted to make an impulsive purchase, consider whether you really need the item you’re about to buy.

Find a Good Dealer

A used car is always going to be cheaper than a brand new one. It’s a good idea to shop around and find a good dealer who will offer you your chosen car at a lower price in good condition. Even though it’s an exciting time, no one enjoys the process of buying a used car. It can be stressful and overwhelming, particularly for first-timers who are less sure of what to look for when buying a used car. Make sure you do your research beforehand, sometimes you can save money by choosing a car that has already been serviced and comes with warranty.

Exercise Caution

If you’re buying a used car online, from an individual or even from a dealer it’s a good idea to be a bit careful. If something seems too good to be true, for example if the price is very low for an almost-new car, it probably is. Always check out the reputation of your dealer online first and don’t feel pressured into making a decision you’re not comfortable with. Unfortunately, there are some untrustworthy people who will prey upon the naïve and you could be ripped off.

Generic advice is not a service regulated by the Financial Conduct Authority.