4 Ways To Come Up With A Car Down Payment
When you buy a new car, paying at least 20% down is ideal. If you can afford to hand over more, however, it’s highly recommended.
The larger your car down payment, the less you have to spend on interest. You’ll have more options as far as monthly payments go, and you’ll increase your chances of qualifying for a bank loan.
The struggle is having enough money to make such a substantial payment upfront. Saving that kind of cash can feel almost impossible, but where there’s a will, there’s a way.
4 Ways To Come UP With Car Down Payment
We have a few tips that will put you in the right financial direction. Keep reading to learn more.
1. Automatic Savings
The hardest part of saving for a car down payment is remembering to take money out of your paychecks and place it in your savings account. The good news is that you can ask your bank to do the remembering for you.
Set up automatic deposits. It will take a portion of your paychecks and place it in your savings account. You get to choose how much goes in, and it will be safe from any bills you have on auto-pay.
2. Plan a Realistic Budget
Grab a pen and paper and take a minute to calculate all your monthly expenses. What you have left over is how much you can spend on a car. There’s not much of a point in saving up 6,000 dollars for a down payment when you can’t afford the vehicle that would call for that kind of money.
By calculating your expenses, you also find out where you can cut corners. Get rid of that pricey gym membership in favor of going on morning jogs, switch to a cheaper phone plan, bring lunch from home instead of eating out, and bike to work if you can.
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3. Take Up a Side Hustle
You shouldn’t force yourself to get a second job just so you can save up for a down payment. There isn’t anything wrong with taking up a little side hustle, though.
Sign up to drive for Uber or DoorDash. If you’re crafty, you can always sell things on Etsy.
4. Erase Your Credit Card Debt
Coming into the dealership to buy a new car with a prequalification in your hand will lower the amount you need to put down. The problem is getting that personal loan.
If your credit score isn’t outstanding, there’s no way fastloandirect.com or any other lender is going to help you. For that, it’s recommended to talk to the creditors.
They want their money, so they’ll probably be willing to work with you to figure out a payment option that works for you.
Get Your Car Down Payment Squared Away
One of the hardest parts of buying a vehicle is getting your car’s down payment squared away. For many people, the only option is saving up and getting a car later.
If you need your vehicle now, try taking up a side hustle, get your credit card debt in check, start budget planning, and set up automatic savings.
For more tips that will help you save up for your next car, visit the Lifestyle section of our blog.