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How to Save for a New Car

  • 22 Nov, 2021
How to Save for a New Car

We all have things in life that we are saving for. It could be a house, a holiday, a phone. For many, we all have a car in mind that we would love to own one day. AutoCoinCars have some top tips on how to save for a new car.

When we say a new car, we don’t mean a brand new 2021-22 plate, just a new car for you. Your budget could be anything from £500 for your first car to a luxury or vintage car priced over £100,000, or even into the millions.

It can be difficult to save for multiple things, and having the discipline to stick to a savings target can be challenging too.

These are a few things you can try to help you reach those saving goals:

Restrict Your Spending

Evaluate your monthly spendings. Where can you cut back on spending? Are you saving but just not putting it into a savings account? Do you have unnecessary outgoing such as a gym membership you don’t use? Do you have a habit of impulse buying? Looking at these things could help you significantly reduce your outgoing.

Have a look into when you last reviewed things such as insurance for your house or car, or your energy bills, or your internet provider. Are you getting the best prices from them, or could you save by switching to a new provider?

Looking through these things could save you money yearly, monthly, possibly even daily!

Research Savings Accounts and ISAs

How many bank accounts do you have? If you answered 1 you should definitely seek advice from your bank or a financial advisor on how you can improve your money management.

You don’t have to have a plethora of accounts across different banks and different types of accounts. However, we recommend that you look into a savings account. Look at the different types of savings accounts that you can hold and compare interest rates across various banks.

If you tend to have bumps in the road that mean you have to take money out of your account frequently then you’ll need to look for a flexible savings account that still has a decent interest rate.

Alternatively, if you are happy that you have a set amount you can put away on a regular basis and not need access to it for a year or two then you could get great rates by choosing a fixed ISA where you could get interest rates as high as 0.5%. The best part of this interest is that it is completely tax-free!

Set up an Automatic Transaction

If you are someone who is prone to impulse buying when you know you have money in your account then this is where a standing order/automatic transaction will come in handy. 

Set yourself an amount that you know you could comfortably afford to save each week or month. Once you have set this, create an automatic transfer to go into your savings account a few days after you would get paid from work/receive income. 

By setting this up you will lower the temptation to spend that money because it will feel like you don’t have access to it or aren’t allowed to spend it. You can then enjoy seeing that savings total go up steadily with each transfer.

Choose the Right Buying Option for You

Choosing how you are going to buy your car is an essential step in knowing how to save for a new car. 

Are you going for large savings so that you can pay for the car in full? Or perhaps you want to finance it, in which case how much of a deposit do you want to save for and how much do you want to spend monthly on financing?

If you have evaluated your money then you should be able to have a clear choice of which option is the most achievable for you.

Sell Your Current Car

If you already own a car and are looking to upgrade to a new one then selling it for the right price and in the right way can help add some funds to your car savings.

Our first suggestion is to try and sell your car privately. Selling it yourself will mean that you get to keep all the money from the sale, you won’t lose anything to a dealer, reseller, or scrapper. It may be time-consuming but it would be worth it if you can sell it privately.

If private selling isn’t an option for you then you can also look at part-exchanging. Part-exchanging a car through a dealership will help reduce your final bill and will remove the stress and time of making your own arrangements for your car privately. 

We would advise researching the dealership to make sure they are reputable and will give you a good price for your car. Always try and haggle as well, you could get more for your car if you are willing to negotiate.

If your car is too old or in poor condition then your final option could be to sell it for parts or sell it to a scrap company. This may not get you much, but it’s better than nothing and will be a helpful amount towards your new car.

Saving Your Crypto

At AutoCoinCars we allow customers to buy a car with cryptocurrency. So, if you are looking to save up your crypto we have a few pointers here as well. Firstly, ensure that the crypto you want to buy in is part of our accepted payments, you can see those here. 

Secondly, keep an eye on the market, the crypto market is volatile so try and buy within the dips in the crypto trend to try and maximise your crypto funds. 

Thirdly, avoid scam coins, there are many scam coins in the market that will sharply rise and fall and then vanish so you are stuck with a heavy loss. To avoid this, make sure that you research the cryptos you invest in. 

We only partner with reputable cryptos so you have the best outlet option when spending your crypto on a car from AutoCoinCars.

We hope our top tips on how to save for a new car have been useful for you.

If you are looking to buy your next car with crypto you can browse our stock or contact us today for more information.

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