Skip to main content

How to Save For a Down Payment on Your Next Family Car

There are approximately 6 million car accidents in the U.S. each year, but that doesn't stop most Americans from needing a reliable vehicle to get around. Still, purchasing a new or used car can be expensive. Having a down payment saved in advance can help make sure that the process goes more smoothly.

The Importance of a Down Payment

Around 95% of all buyers of houses listed with a real estate agent go through the traditional bank financing process. Many car buyers also require financing from banks or other lenders in order to purchase a car. Since it's rare to have the means to pay for the car's full price outright, you'll probably need to take out a loan. Having a larger down payment saved in advance can help you get a better interest rate on the financing for your vehicle while lowering the dollar amount of your monthly payments.

There are a variety of ways that you can work to save up the money for this down payment, including the following.

Prioritize Your Account Transfers

Once you've done your budgeting and decided how much money you can afford to set aside each week or each month towards a down payment for a vehicle, it's important to pay for those savings before other non-necessities. This means that you pull the money out of your checking account and put it into a savings account before the money can be used for incidental expenses. Paying yourself first is a great way to set money aside, as it makes savings a priority.

Cut Back on Expenses

Another method of saving money is to spend some time evaluating your budget. Is there anywhere in the budget where you can cut back and have more money to put towards a down payment? Even small amounts of money can help, especially if you find small amounts of money from several places and can combine them each paycheck.

Earn Extra Money

Depending on how much you need for your down payment, it may also be necessary to pick up a side gig or second part-time job to earn extra money. This job can be temporary but can help quite a bit as you work to build up the savings that you need. Consider jobs like working from home doing customer service, driving for a rideshare service, or delivering food. These part-time positions can add the extra income that you need so that you can save money quickly.

Budget for Extra Expenses

When establishing a budget for your car purchase, don't forget to factor in maintenance costs, insurance fees, and the potential for out-of-pocket repairs. For instance, windshield cracks greater than 12 inches long often necessitate replacing the glass. While your insurance might cover such an event, you may need to leave wiggle room in your budget in case you don't want to file a claim. Having this money set aside in an automotive emergency account can save you a great deal of stress in the long run. While this won't necessarily apply to your down payment, getting in the habit of setting money aside will be helpful once you actually own the vehicle.

Saving money for a down payment isn't easy, but having a larger down payment can make it far simpler to get the car that you've always wanted. A bigger down payment can mean that you get a lower interest rate and lower monthly payments, even if your credit isn't perfect. This can impact your monthly budget overall, helping make sure that you have more money to spend on other household expenses even after you've purchased your new car.


Popular posts from this blog

Copycat Boston Pizza's Bandera Bread

Have you ever had a craving for something but then once you looked at it you realized, I can make that myself for next to nothing? That's how I felt last night I thought about ordering in some food but then realized I really don't want to spend any money. I really wanted pizza bread from Boston Pizza. So I recreated it and oh my goodness was it ever good. Try some of these great recipes too!  Pizza Bread Dough 1 cup warm water 1 tsp instant yeast 1 tsp sugar 2 cups flour  Seasoning 1 tbsp melted butter 1 tsp garlic powder 1 tsp onion salt 1 tsp parsley 1 tsp rosemary 1 tsp basil 1 tsp oregano 1/2 tsp sugar 1. Combine the water, yeast, and 1 tsp of sugar in the mixing bowl and let stand for 5 minutes. Add the flour and salt and mix until a ball of dough forms. Roll ball onto a floured counter top and knead for a couple minutes.  2. Put dough in an oiled bowl and let rise for 30 mins in a warm place with a clean cloth draped over top. While your doug

DIY Table Revamp - Guest Post

Hi all! I'm Tiffany from This Motherhood is Brought to You by Xanax and I am so excited to be a part of the Guest Post Swap and to be Amanda's swap partner! I love love love her idea on how to make indoor snowballs with egg cartons. I am definitely going to have to try that with my kiddos since my smallest one has decided that it has to snow for Christmas. Poor baby doesn't know snow is hard to come by in Alabama :( For my guest post I wanted to share a little DIY with you guys that involves duct tape! A few months ago my daughter's little chair that goes with her table she sits at every day tore and she made it worse by pulling all of the stuffing out of the seat! What started out as a quick fix turned into a great idea. She loved her seat so much that she has now decided that her table has look cool too so being the smarty pants that she is, she tore her table!


While shifting to your dream house, you may face a mountain of pre-move work, including downsizing, packing, hiring moving trucks, and other help. When you already have a list full of tasks, home improvements for the new house might be the last thing. However, handling the new house renovation before moving in is convenient for you in many ways. Planning home improvement is exciting and stressful both. If you are moving to a house that is not entirely ready, you have massive things to do. To make things smooth, create a list based on priorities. If you are shifting to a freshly build house, you do not need to make a lot of renovation, though you can add a little personal touch to it. When you make house changes before moving in, you can save your floor and furniture from paint spills. You will have an open space to plan the house interior. You can protect yourself and your family from hazardous odors and dust. There are several home improvements like removing popcorn ceil