It’s 2022 and saving money is not a simple matter. Between fluctuating fuel costs and auto insurance spikes, driver’s have spent more time this year taking money out of their pockets than keeping dollars safely tucked inside.
Fortunately, things are starting to ease up a bit. Although we expect it will take quite some time for car ownership to not be deemed a burden once again. If you’re looking for ways to save right now, there are a few feasible steps you can take to make sure this happens.
Got no clue where to start? Here’s our team’s best insights on how to save the most money on a new or used vehicle in 2022.
Ways to save the most when buying a car
The first steps of car ownership often involve two crucial components: budgeting and saving. Whether you’re buying a brand new car or pre-owned model, it’s important to build a practical strategy that takes both into consideration. While budgeting allows you to estimate the amount you’ll save each month, saving calls for strict decision making. In either case, here are the best actions you can take to ensure your car buying goal is achieved:
Save more upfront
Contrary to many of life’s investments, car’s are generally ones that lose value within minutes of driving off the lot. Because of this, its best to pay more money upfront for the down payment so you end up borrowing less on your auto loan. Not only will this guarantee fewer interest charges over the lifespan of the loan, you’ll also enjoy the advantage of smaller monthly payments. Our advice — save the most money you can manage before jumping into a car buying decision.
Never walk into a dealership without having your bottom line number in mind. What we mean by that is definitely take some time beforehand to research what type of car and payment will fit well within your monthly budget. Buyers tend to get overwhelmed by the time they are discussing payment options with a car salesperson. While some offers might be enticing if you “pay a little more” each month, you also have to take into account sales tax, registration fees, interest rates, and auto insurance. All that stuff adds up quickly and will impact your car budget.
Create a car-savings fund
One of the easiest ways to stay on track of your savings goal is to create a separate savings account for your future car purchase. You can choose to automatically deduct a set amount from your paycheck each week that goes directly into this account. Many banks even have programs, like Chase Autosave, that offer high-yield savings with no monthly fees. Overall, automated savings guarantees your money goes safely in the right direction versus spent on some miscellaneous expense.
Trade in your old car
In the past, trade-in’s haven’t always been the smartest financial move. Why get less money from the dealer when you could sell it for more on your own time? While that might have been the case years ago, the automotive market is in a different position nowadays. Due to nationwide inventory shortages, dealerships are ready and willing to pay a bit more for trade-in models that are in good condition. Therefore, if your old car has some value left in it, consider seeing what a trade-in deal will do for your next purchase.
Earn some extra cash
As they say, time is money. So, if you have some extra time to spare this year, why not make the most of your budgeting and savings goals and find a way to earn some extra cash in your wallet? You could do freelance work, sell items online, sign up for a ride share service, or dog sit on the weekends. Truthfully, any position that gives you the freedom to work anytime and anyplace. Your side hustle will surely expedite the amount you can save and get you one step closer toward investing in a new vehicle.
Recap of how buyers can save the most money on a car
Despite the current financial climate, we feel there are always ways to make the most out of your budgeting and saving goals. Even if its only by a small amount! For that reason and more, we encourage shoppers to take these savvy tips into consideration at all times. The more you’re able to save (and the faster you’re able to save), the more likely you’ll reach your car buying goal and end up in a smart car buying decision.
We hope these money-saving suggestions lead all potential buyers in the right direction this year! Want to learn more about saving money? Visit our archives for the best resources on saving money in the automotive industry.