How to Afford Your Dream Car in 7 Steps
Buying your dream car can be a reality with a little planning. Here, read our tips on how to afford the car of your dreams so you can drive around in style.
Cars are emblems of freedom. You can see that freedom in your mind. Imagine flying down an open road, your windows down, your music blasting. It’s one of the most liberating feelings in the world.
When you picture that scene, you probably imagine yourself in your dream car. Maybe it’s a convertible, an old muscle car, or some other vehicle. But it’s just a dream, right? There’s no way you could ever afford it.
That may be what you think, but as it turns out, you’d be wrong. Purchasing a dream car can be done if you take some time to plan. In this article, we provide you seven steps that will enable you to finally own the car of your dreams!
1. Set a Clear, Realistic Goal
When you’re trying to figure out how to buy a luxury car, the first and most critical step is to decide on the car you want. Goals can only be attained when they’re clear and specific.
Specificity is everything in this. Most types of luxury cars cost anywhere from $50,000-$100,000.
If you’re unrealistic about the amount of money you’re spending, you’re bound to come up short. Leave no detail undetermined; pinpoint the make, model, and year you want before you begin planning.
You also have to be realistic about the fact that this car is an investment like any other. Unless your car is vintage or an antique model, it will lose value over time. Whatever money you spend on this car will depreciate over time. Let that realization be the limiter on what car you purchase.
2. Apply Your Savings
Do you have any dormant savings accounts you’re not using? If you’ve already built up a substantial amount of savings, buying a luxury car is a fantastic way to apply that money.
If you don’t have any money in your reserves for a car yet, that’s okay, too. There are other ways to get that money, they just take a little more time.
If you want to put some money away for your new car, spend some time examining your budget. What are some things you could spend less money on in your day-to-day?
One of the most common saving tips people get is to cut out the morning coffee run. Big coffee chains often charge up to four dollars for a drink, let alone any pastries or side items you may get besides.
Instead of spending that money on coffee, put it towards your dream car! In the long run, those groggy hours will feel like a small price to pay.
3. Improve Your Credit Score
Few reliable dealers are willing to sell you a car if you have a weak credit score. Even if you have all the savings in the world, it does little good if your credit is weak.
There are several ways to improve your credit score. Paying your bills on time is one crucial step in getting your score higher. Other actions you can take include keeping your credit cards open.
While this may seem counterintuitive, closing a credit card takes its credit limit out of your average, which can lead to a reduced credit score. Instead, keep those lines open and use them occasionally. Whatever cards you use, be sure to pay them on time.
Another option that can help build credit is taking out a small personal loan designed to improve credit. By making your payments on time, you can raise your credit score at a faster rate.
4. Take a Personal Loan
Personal loans aren’t only ways to build your credit; if you have enough credit, you can take a larger loan to put towards a car down payment. Depending on who you get your loan from, you may have access to lower interest rates as well.
5. Get a Second Income
This option may not be available to everyone; it requires you to have the sort of time that people with families or highly demanding jobs won’t have. However, if you have the opportunity to take on a second income, it can drastically aid you in purchasing your luxury car.
If you have an income that lets you get by already, then you can devote as much of your second income as you want towards your dream car.
6. What Maintenance Does Your Dream Car Require
Once you’ve figured out how your luxury car financing options, it’s time to handle daily finances. Once you have the car, how will you pay for its regular expenses?
A lot of work goes into maintaining and using cars, and even more money. Take some time to calculate the monthly expenses of your dream car. Here are some common considerations to bear in mind:
- Gas prices
- Parking fees
- Registration and inspection fees
- Insurance payments
- Loan payments
- Cleaning and customizations
Several types of luxury cars require more expensive fuel regularly, contributing significantly to its upkeep expenses. Regular cleanings or any customizations you may further add to its costs.
None of this is to dissuade you from buying your car. While this may seem like a lot, it’s simply asking you to be realistic about your goals and their requirements.
7. It’s Okay To Wait For The Right Pitch
Don’t feel like you have to take the very first offer that comes your way. Once you have the means for financing a dream car, be content to ”wheel and deal” a bit. Find the offer that seems best for you and your circumstances, and when you do, snatch it!