Do you have a car that you’ve always dreamt of owning? Most people who have a car passion know exactly what, and why they want a specific car. Perhaps it’s the newest Audi, with its sleek design, modern connectivity additions, or outstanding performance. Maybe you have your eye on the new shiny electric BMW iX with its unique functionality and advanced AI. Or maybe you’re keen on investing in something practical and cost-effective that specializes in safety and sustainability. Whatever your car requirements, finding a way of funding a new car can be a concern. If patience isn’t your greatest quality, what can you do to get that car sooner?
Car finance and loans
When you want someone quickly, the first port of call is to consider a loan or a car dealer’s monthly finance option.
One of the advantages of getting a car on hire purchase is that you can drive away with your car the same day, once you’ve gone through the necessary checks. Dealers usually provide various options depending on your requirements. Suppose you want to own your car at the end of the payment period or swap it with a newer model, they will discuss this with you. If you are happy to be driving a good quality car with servicing and repairs included in your monthly payment option, this is the perfect choice for you. You can discuss with the dealer whether you want to own your car once the agreed period is over. Often you can sign a contract with a pre-agreed price. If you are mostly concerned about having a low monthly repayment, this can be arranged, but you will never own the car so you must be clear about what you want.
When thinking about finance options, it is important to set a budget. How much can you realistically afford every month that still allows you to comfortably pay for other household bills?
How much of a deposit can you pay? If you can pay a higher deposit, you will pay less overall for your car by reducing the interest. Using an online calculator allows you to put different figures to help you identify how much you will need to pay overall for your car, with your budget. You may find that long term you pay a lot more than the car is worth if you are paying a low monthly amount. What about other loan options?
It is worth considering an alternative to HP as normal loans tend to offer more flexibility. Comparing interest rates on loans is worth the extra effort as it could save you a lot of money in the long run. Low rate loans are competitive, the guys over at Plenti.com.au offer loans that reward good credit, thus offering lower monthly repayments, so can be a cheaper option than specific car finance.
Just as with car finance, it’s a good idea to consult a comparison website to find cheap deals. If you have a good credit rating, you may even be able to find a 0% deal to fund some, or all, of your car purchase.
Getting credit is an easy way to get what you want now and can be easily organized over the phone or online. The advantage is that once the loan money is in your account you can treat it as cash and head down to the dealership driving your car away the same day. It may be worth considering getting loan insurance to cover you if anything happens, such as a job loss, and you can’t afford repayments. Again, there are many deals out there, so shop around for the best option and compare prices.
What if you have a bad credit rating or simply aren’t happy with getting a loan? How else can you get the car you want in a relatively short time?
Budgeting and saving
Setting a budget and sticking to it can be a challenge. However, it can also be very rewarding. Working hard to live within your means and having a saving goal helps you become more mindful about where your money goes, it also means that you don’t need to get into debt to pay for the things you want. Of course, this option will take a little longer, but it doesn’t need to take forever. How can you organize your budget to ensure the maximum amount left over goes into your ‘special car’ pot?
Create a spreadsheet.
Open a high-interest savings account.
Use money apps.
Write everything down.
If you’re like me and run for the hills as soon as you hear the word ‘Excel’ do not fear it, it doesn’t need to be that hard and is very useful for keeping track of income and expenditure. Excel has a specific template for managing finances which helps you stay more in control of your money. After initially entering all your data, you can sync it to your financial accounts, and it changes accordingly. This is a great way to analyze your spending habits and make adjustments where needed. If you find that you are sometimes slightly frivolous with your money, endeavor to change and put your money towards your savings objective. It may be by giving up that daily Starbucks coffee, walking to work instead of using the train, or running outside to replace an expensive gym membership, you can save much quicker to achieve your goal. It can sometimes be surprising by changing seemingly small things how much extra money we have in our pockets.
Once you’ve determined what you can realistically save, getting the money out of your current account and into a savings account will keep it separate and help you not be tempted to dip into it. So what’s the best saving account for car funds? This depends on how much you want to save and for how long. If you aren’t sure, try giving yourself a time limit and then decide how much you want to pay monthly on HP once you’ve saved enough for a deposit. Compare the cost of saving for the whole car or just part of it. If your target is too high, or too long, then you may not stick to it. Ideally, you want your car as soon as possible, so you may need to make some hard sacrifices in the short term. Whatever you decide, choose a savings account with a high-interest rate. You could also consider a notice account that requires you to give 30 days’ notice before withdrawing any cash. This is a great way to avoid dipping into savings.
In a world of technological advancement, there are many carefully designed apps to keep track of finances. If you find money management tedious, apps such as Cleo, Plum, and Moneyhub all have unique features designed to take the hard work out of budgeting. With most of them, you can link them to your banks, input saving goals, and budgets and they will keep you posted on your progress. Some of them even judge you…. Amazing!
If AI money management is a bit too advanced for your liking, then the old fashioned method of writing everything down can’t fail. If you like to stay in control using a good ole pen and paper, try writing down everything you spend daily. It may be laborious, but it will help you see spending patterns and behaviors that highlight actions you need to take to accomplish your savings target.
Another way to get some quick cash is to change bank accounts. Many banks offer a one-time payment to encourage people to open up an account. Some banks offer £100 for switching. Although it doesn’t seem a lot, all the little amounts add up to a lot over time, so it is prudent to do your research to ensure maximum savings and extras.
By budgeting and saving sensibly, you could be well on your way to acquiring your dream car faster than you thought possible. Watching your savings grow is fulfilling and can encourage you to be more conscious of managing money.
Innovative ways to make money
If your wages just don’t seem to leave you enough left over to save very quickly. Try to think of extra ways to generate income. Does your home have an extra bedroom? If so and you don’t mind sharing, maybe you could rent it out to a lodger or a couple. Depending on size, you could be making an extra 4-£500 per month from renting your room to add to your existing savings. This will help you see your savings grow and provide a temporary solution to cash flow issues.
What about finding items to sell? If you can manage without a car for a short time, then selling your existing vehicle will boost that pot of money. Selling privately will maximize how much you make, so try Facebook groups Freegle before moving onto a paid site.
If you need to keep your car, try doing an inventory of all the items in your house and decide if anything has any selling value. Items of unused furniture can always be sold on and are usually in high demand. Any form of technology such as old phones, laptops, and game consoles can be sold easily and generate a fair amount of cash, so well with the effort.
Do you have any services you can sell? Perhaps with the extra time, we’re all spending indoors, you’ve discovered a unique skill that can be utilized to generate income. Skills such as painting, jewelry making, woodwork, furniture restoration, etc are all hobbies that can be developed and used to start a business on the side.
If money really isn’t flowing too much these days, and let’s face it, the world situation isn’t conducive to economic success right now, then consider entering car competitions. It may seem like a strange way of acquiring the car of your dreams, but there are examples of people winning cars every day through different types of competitions. So how do they work?
There are a variety of online competitions to choose from. For example, Prestige Car Giveaway runs competitions monthly with a choice of different vehicles. You can purchase up to five tickets at a time. Generally, there will be some questions to answer, and then you will be entered into the draw. You can purchase tickets for as little as £10. The draws are picked fairly using a google number generator. The advantage of entering competitions are limited outlay, greater chances of winning than the lottery, and the opportunity to win a top of the range car that you maybe couldn’t afford without many years of saving. You can read online about other winners for inspiration.
When considering entering car competitions, it important to do your research. Not all websites are legitimate, so use sites such as Trustpilot to find reviews before buying tickets. Once you’ve found some honest sites, then entering multiple competitions at once will increase your chances. Just don’t spend more than you can afford to lose—the first rule of responsible gambling.
If you’d rather save for your own specific car, then why not try other competitions online. Every day there are thousands to choose from. Sites such as competitions-time.co.uk have many free competitions offering cash prizes, holidays, beauty products, and technology. It’s good to note that anything you win could then be sold on, and the cash added to your car savings account. Always remember to be responsible when playing competitions. It may be tempting to invest a little more than you should, just remember to weigh up and consider if it is worth the money you may lose if you don’t win.
So, however, you decide to purchase your new car, do your research, make a budget, always compare prices of loans or car finance, and don’t pay more than you have to. Then finally you’ll have the keys to the car you really want! What a joyous day that will be. Happy and safe driving.
Interesting Related Article: “Useful Tips for Buying a Used Car with Bad Credit“