Many drivers strive to one day own their dream car! A dream car can look different to each driver. Whether it’s buying a luxury car or buying the top-spec model of your favorite brand, you’ll need to make your dream car a reality. Your savings goal will look different depending on which type of car you want but the steps below can help you to assess how much you need to save and how you’ll get there.
Set your savings goal.
Having a clear goal to reach is the first step to getting your dream car. To do this, you can do some market research into the make and model and see what the current listing price is. If you’re looking to buy a brand-new car, it can also be worth comparing used car deals too. Whilst brand-new cars are great, they do lose value quickly and may not be a worthwhile investment if the car depreciates quickly.
Consider running costs.
Buying your dream car is one thing but being able to own and run the car is another thing. Running a car can be expensive, especially if you’re buying a luxury car. Things like car insurance and repair costs can be higher as high-value cars will use better and more expensive parts. It can be a good idea to research the running costs of your dream car first to see if they’re attainable.
Review your expenses.
To make your savings goal happen, you need to review your finances and see where you could free up some money to put towards your savings. Assess your income and outgoings and if you want to get serious about reaching your goal, it can be a good idea to cancel any non-essential payments. Think about your spending habits like buying a cup of coffee every day and replacing it with taking an instant coffee from home. Or cancel any streaming services you don’t need any more. By cutting your costs in certain aspects of your life, you can instead use this money towards your dream car.
Use car finance.
If your dream car looks too far out of reach or if you want to instead save for a deposit, you could consider spreading the cost with car finance. The UK car finance industry is more popular than it’s ever been and it’s one of the most common ways for drivers to fund their car purchase. Car finance can help make your dream car a reality, but it is always subject to status and may only be offered to the best candidates. If your dream car has a high price tag, lenders may only lend money to drivers with the best credit scores to ensure they get their money back.
Set up a savings account.
Saving money is easy but dipping into the savings account can be very tempting too. If you want to reach your goal, it can be a good idea to set up a dedicated savings account for your dream car. This way, you can separate your savings from your rainy-day fund and accumulate enough to get your car!
Sell your old stuff.
Sometimes we can be sitting on a gold mine and not even know it! Well, kind of. The old stuff you have in your home could be sitting collecting dust and as they say, one man’s trash is another man’s treasure! Have a good clear-out and any items which are of decent quality could be sold for cash. Use free online platforms like Facebook marketplace, Vinted, or Craigslist to list your items and make some money.
Boost your income.
It can be hard to take on another job when you’re already working full time but there are a few small ways to boost your income without too much effort. You could get paid to take online surveys and do it from the comfort of your own home. You could even consider tutoring others in a field you’re an expert in or starting a blog and charging others to post on it.
Be realistic.
And finally, striving to own your dream car is a great goal to have but if you’re going through the process and have found it may not be as affordable as you first thought, you need to be realistic with your money. If your savings goal is going to take you a few years to complete, it may be worth keeping in mind that car prices can fluctuate massively, and the current economy only seems to be getting more expensive. Before committing to getting your dream car, it can be worth thinking about if it’s really possible.
