Simple Ways to Afford the Down Payment on Your New Car

Your dream car is sitting right in front of you, but there’s one problem. You don’t have the cash to put up for the down payment. Don’t panic. There are some simple ways that you can get some extra money in your pocket, so your car doesn’t drive off the lot with someone else.

Sell Your Old Car

If you don’t need to keep your current car as a backup for your family, you could get a lot of money by selling it. Even if you have an old beater, you can get money for your junk car. Investigate different local companies to get the best deal. Many of them will come to your house to pick up the old car, making it more convenient for you. You will get cash immediately, and you can use it for your down payment.

Consider Your Budget

Even if you’ve made money donating plasma or through other side hustles in the past, it’s not always realistic that you will be able to depend on unconventional saving methods. Don’t purchase a car that will cost $500 a month when you can only afford $300 in your base budget.

Taking a realistic look at your budget, you’ll be able to afford your car note every month, and your down payment will be more feasible. Take a few months to save up for a down payment that will make monthly costs doable. If you are able to continue your side hustles for a while, use those to pay a little extra on your monthly bill as you go.

Commit to Saving

Getting a brand new car is exciting, but be patient. One way to get into your dream car faster is to automate your savings. Direct deposit a portion of your paycheck into a savings account, so you’re not tempted to spend it on something else before saving. Your funds will accumulate quickly, and you’ll be cruising in your new car in no time.

Get Creative

After you have looked at your budget, you might realize that it’s going to take you forever before you can afford the down payment. There are some great options to put some extra money in your pocket without waiting. For something that you want, you have to do whatever it takes. Your extra persistence for new savings strategies will pay off. Cook your own food and eat out less. Have a garage sale (you probably don’t need that extra anyway). If you’re artistic, sell a few pieces.

Buying a car is a big decision. There can be a lot of benefits to saving up for your down payment, including a lower interest rate and monthly payments, and offsetting depreciation. There’s a lot to consider, and planning can help you afford your down payment, and even do some negotiating. You’ll drive away happy knowing that you made the best financial decision for your car.

 

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