If you are a car geek and desire to buy a car, you probably dream about your favorite wheels – ON REPEAT!
Unfortunately, the cost of most wheels compels us to push away the idea of owning them. After all, it isn’t only the automobile structure that burdens your pocket. Instead, you need to pay the insurance tax, running costs, and regular maintenance fee.
However, there is a bright side to the story. You can turn your auto dream into reality by taking the proper measures. Plus, you must make sure you don’t overpay in the process.
This blog provides a detailed insight on how you can afford your dream vehicle without paying extra:
Research your dream car
You may think you know all about your dream car; it is crucial to do more digging. There is no point in saving a considerable amount if you can’t legally drive the car or fix the issues you face while driving.
Doing your research into the cost of the car always pays off.
It lets you know all about the insurance money, fixture expenses, and running costs. This gives you a heads up about the spending waiting ahead and lets you prepare in advance.
Create budget
At this point, you may be aware of the cost of your dream car. Now, it is time to devise a budget plan for those wheels.
For starters, consider how much you earn per month and how much you can set aside for the car. Remember that you need to save for further expenditure, including insurance, gas, and fixtures. It would be best to set some money aside for later expenses even before you get your hands on the car.
Next, project and designate a budget for your expenses. Besides the car, you also have to pay your bills and spend some money on yourself.
Take this as Warren Buffet managing Berkshire Hathaway’s investment portfolio. Buffet has devised a concrete set of criteria to look for solid business models that sell inelastic products and pay a good dividend. You must know the long-term goals, so you stay motivated and keep saving for your future car.
Go for a savings account
So far, banks are the safest place to keep your money. Thus, open an account and keep all your money there. Also, consider a passbook savings account, so it isn’t easy to withdraw anytime you like. This keeps you restricted and controls your expenses.
If you already have a bank account, we recommend you opt for another account to keep the car budget aside.
Spend less, save more
When planning for your dream car, spending less and saving more to align with the budget is the thumb rule. Tracking the expenses and monthly revenues gives you a peek into the larger picture of your finances.
If you don’t have a well-designed budget, you must create one to plan your spending and saving. This allows you to determine all the areas you need to control and where to cut unnecessary expenses. You have to sacrifice your “wants,” but you will find a better replacement in the form of your dream car.
Opt for alternate financing options
If you have been saving for a long time and you find yourself nowhere, then you should consider speeding up the process. Alternative financing is the best way to do so. These include bank loans, auto loans, salary, and car title loans. These are the alternative financing modes that give you a fraction of the cost you need.
Or you could go for the car title loan to borrow a considerable amount. But you need a car title in place for this. Also, remember that it is a loan, and you have a monthly payable even after you have already purchased your car.
Always inquire about the payment terms, interest rates, and collateral needed before picking an alternative financing option. Another strategy could be to ditch your junk car and keep the money aside in your savings account.
Improve your credit score
Improving your credit score is a prerequisite for all kinds of investments. In this scenario, it will increase the speed of becoming an owner of a great car. Savings and investments are not enough if you have a poor credit history. In fact, extracting a bad credit loan will cost you a massive amount in repayments.
If you improve your credit score, it will increase your options for reliable borrowing methods. It would be best to research ways to improve your credit score and then lay out a well-structured plan to buy a car.
Don’t overwhelm yourself
We understand the urge to splash all your savings on the dream car. However, sometimes, you have to bide your time. Nobody wants to end up in a phase where they can’t afford to spend on necessities because they are saving for a car.
If you find yourself stuck in this scenario, it is wise to look into your financing options to learn about your loans. Bear in mind – patience is the key to reaching a sound financial position. It may take some time to reach that state, but buying your dream car from a solid financial position is quite fulfilling.
Participate in car competitions
If you participate in competitions to win your dream car, you increase the chance of winning your desired vehicle if your luck is kind enough!
There are many online competitions where you have to purchase a ticket and wait for the announcement day. Entering these competitions may appear lame and unworthy, but you must stay in it to win it. This will eventually help you to afford something you were always dreaming about.
Parting Notes
With these tips in mind, are you ready to commit yourself to this endeavor?
Many people give up on their dreams because they believe it’s surreal. On the flip side, we have an entirely different perspective. No dreams are impossible if the player knows the ins and outs of the game. Buying your dream car isn’t a far-fetched dream if you strike the right notes!
