Many people have car loans. In fact, approximately 107 million Americans own a car that they pay a note on.
Not only are car loans expensive, but they can also be avoided, even if you are on a low income. If you are looking for a vehicle now or soon, here are a few tips to help you pay cash for your next car.
Drive Your Old Car As Long As Possible
If you have a car already, drive it until you can’t drive it anymore (or until it doesn’t make sense to keep repairing it). Why buy a car you can’t afford when the one you have works just fine? Sometimes, you may be envious by the people driving new wheels, or the people who don’t have to manually roll up their windows. However, you have to remind yourself that it’s not worth getting into massive amounts of debt just to own a newer car.
If you don’t have a car yet, now is the time to act like you do. Start saving money as if you have a car note, insurance, and other miscellaneous things to pay for.
Save Each Paycheck
Even if it’s just a few dollars, save money from every paycheck in a new car fund. You can always increase this amount as you earn more or cut out expenses, but try to save something. It may take you a little longer to save enough money for a car, but it can be worth it when you realize you don’t have that extra bill hanging over your head every month.
Save Extra Money to Pay Cash For Your Next Car
Do you get bonuses, raises, or even birthday money? It should go straight into savings when you get it. It may be hard seeing that money sitting in your savings when you feel you deserve to spend it, but that extra money helps grow your savings faster.
For every bonus or raise you get, continue to save it and live off of the income you were making before. Before you know it, you’ll have a nice chunk of change to use for your next car purchase. ...continue reading