If you’ve ever dreamed of a 7 seat car for your family you know they’re not cheap. This means that you have to plan carefully to ensure that you can pay for it in full or afford a monthly loan payment. What are some tips that you can use to budget for your next vehicle?
Plan On Trading In Your Current Vehicle
Your current vehicle could be worth a few hundred dollars or a few thousand dollars. The value of the car that you drive now can help you create a plan to purchase your next car. If you have a car that is worth a lot of money at the moment, you may want to plan on buying a car now to take advantage of the excellent trade in value that you car has.
Start Investing Today To Buy Your Car Tomorrow
If you put $10,000 into an investment account today, you can have $11,000 next year. You then invest the money again to create an even larger return on your initial investment. Eventually, you will generate enough interest to be able to make your car payment each month. This allows you to buy a car without having to use any of your savings to pay for it.
Get A Second Job To Save Money For Your Car
It may be a good idea to get a second job to help you pay for your next car. The money that you bring in can be put exclusively toward the cost of your new car without ruining the rest of your budget.
Cut Other Expenses To Free Up Extra Money
You could transfer your credit card balance to a card with a lower interest rate. That alone could save you hundreds of dollars a month. That money can then be used to make a car payment. Getting a roommate to share your apartment can be an easy way to lower expenses as well.
Negotiate A Good Deal On Your Next Car
Whenever you shop for a car, you should pay less than the sticker price. If you have a down payment, you may be able to negotiate an even lower payment each month because the dealer will get more of their money upfront. Since you are doing them a favor, the dealer may be willing to do you a favor by giving you a better deal. If you can cut an extra 10 percent from the cost of the car, you can get your car that much faster.
Budgeting for your next car doesn’t need to be complicated. Investment interest or getting a second job can make it easier to pay for a car while getting a good deal on the price of your car can make it easier to pay for as well. As long as you prepare ahead of time, you should have no problem getting the car you want at a decent price.
Author Bio: Jack has been a mechanic for 10 years and is a complete rev head. He has 5 cars to his name, and his past time hobbies include redoing old cars, travelling, going to car shows and writing blogs about cars.