Buying a car is expensive and car loan installments have become one of the biggest monthly expenses for most households. The price of a car is only a baseline. There are additional costs of car insurance, registration fees, and maintenance. Maintenance includes oil changes, new tyres, new battery, and windshield wipers, among other aspects. In order to buy the right car, you need to be confident that the model you choose will serve your needs. Explained ahead are a few ideas to help you save money if you wish to purchase a new car.
Tips to save money to buy a new car
Remember the below-mentioned tips to ensure you find a car that offers value for money.
1. Consider the amount of car payment
The first step is to decide the car you want to buy and the payment you will have to make for it. Make sure that you consider all the costs associated with the purchase since car payment is not a single expense.
2. Calculate the cost of down payment
You might not be paying the entire cost of the car at the time of purchase; hence, you need to calculate the amount of down payment you need to make. When you apply for a loan, there will be a down payment requirement and this is something you will have to pay from your savings.
3. Set a budget
Cars are expensive but they are a necessity today. You need to budget the expenses to make the right decision. Set a budget and stick to it. See how much money you can save each month to make the monthly loan repayment. Prepare a repayment schedule once the loan is approved. In addition, you must reduce spending other unnecessary expenses until the loan is repaid. Consider the cost of insurance premium in addition to the EMI. You can opt for zero depreciation car insurance if you want a higher amount at the time of claim. The insurance company will not consider depreciation on the car if you have this cover.
4. Make savings a habit
This is the hard part: sticking to the plan and saving. You need to make savings a habit until you achieve your goals. You can start by saving a small amount each month and setting it aside for the car purchase. Do not debate every purchase you make but remain practical about where you are spending your hard-earned money.
5. Do not punish yourself
You need to save but do not punish yourself over it. Your savings are building but you need to keep your emotions in check throughout the process. There is guilt when it comes to spending too much on something. Also, there is always a fear that you will not save enough and will fall behind. Do not punish yourself over this. Remember why you are saving and work towards your objective.
Be realistic about the car you can afford, what you can spend and where. Make a plan and relax. Cutting down on little expenses like coffee or dinner at an expensive restaurant will help you save in the long run. Following the aforementioned tips will help you in getting your preferred car.
Also, buying an insurance plan from an insurance provider you trust, like a car insurance through Finserv MARKETS, will help you to give good financial coverage to your new vehicle in times of need. You can benefit from features like 24×7 roadside assistance, cashless facility, insurance premium in installments with Bajaj EMI Card, hassle-free renewals, and more.
Read more about what is IDV in car insurance and then move on to buy Car Insurance at Finserv MARKETS online.
To know more on car insurance in depth, you can check out these blogs:
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