How to Save for a Downpayment on Car in British Columbia?

Posted : June 20, 2024
Save downpayment on car

Even though a downpayment on car might not be necessary when buying, saving some amount to make a substantial down payment can make the process of getting approval for an affordable auto finance loan a lot easier. Often, a down payment of 10-20% of the car’s value is advisable. Now, a question is how to save for a down payment?

Define your Savings Goal

Understanding the sole purpose of saving for a downpayment on car is the first step. The second most important step is to set a clear savings goal. You should first realize how much you need to save to make things easier in terms of getting qualified for an easy to afford auto loan through a hassle-free process. If you set your clear target, you have a tangible path to walk on.

Here is Why it is Important!

With the lack of a clear goal, you may feel that you are heading towards an endless task. On the other side, if you have a specific number in your mind, you stay focused and disciplined. To exemplify, if the car you need is available at $30,000; and you aim for a 15% down payment, you should save at least $4,500 – a concrete target to reach.

So, take into consideration the price you want to buy a car at, analyze your current situation, and also contemplate on how fast you wish to make the purchase. You should consider categorizing savings as per weekly or monthly targets.

Go for Segregated Savings – Virtual Buckets

From traditional savings buckets to virtual ones, you can use any to maintain a designated portion of your savings.

Here is How you can Do it!

If you need to save $200 per month, you may have to allocate $100 for your down payment and the remaining $100 to be utilized as an emergency fund. Thus, you are systematically saving for various goals, without mixing funds.

Here is Why it is Important!

Utilizing savings buckets enables you to track progress toward your pre-defined goal more clearly. You get to see how close you are to your target. This also prevents the accidental or careless use of money.

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Consider Selling Unused Items

Those who are wondering, “How do I save money for a car?”, need to rest assured, as there are some more interesting ways you can do it. Selling items that you no longer need is one of the easiest and quickest ways to make extra money. This step allows you to create more space in your home; moreover, you end up earning some cash.

How to Save Money for a Car by Selling Your Unused Items?

You can utilize online marketplaces to sell some common items such as clothes, furniture, electronics, etc. Take good and clear photos and write honest descriptions. You can also sell stuff online to boost your savings for a down payment.

Make Your Hobby a Side Hustle

If you have skills which you consider as your hobby, consider teaching these skills online. You can become a tutor or trainer and share your knowledge in programming, languages, or other areas.

How You Can Do It?

Identify a skill you are proficient in. There are some online platforms that can offer you one-on-one tutoring or similar opportunities. This will help others gain knowledge from you. Besides, you will end up earning some extra money while doing something that truly interests or excites you. Over time, as your reputation grows, you can increase your income, and your purpose of saving for a down payment is fulfilled.

Develop Online Courses

One more way to save down payment on car is to create online courses for various platforms and earn extra income. Importantly, it takes time and effort to create a course. However, once it is done, you can easily sell the same repeatedly with no additional work needed.

How You Can Do It?

Consider selecting a topic you have good knowledge about, and outline a course structure. You can utilize videos, written content, and even quizzes to make the course more engaging. Make sure you invest in high-quality recording equipment to ensure your content is professional.

Remember, proper maintenance is needed to answer questions and provide feedback to students. This is a valuable source of extra income that will help you save for your downpayment on the car. Consider promoting your courses on social media as well as other online platforms.

Leverage Coupons for Daily Expenses

Now, this method to save money for a down payment will surely excite you. Well, there are many websites that offer vouchers and discounts for different products. Get benefits from them.

How You Can Do It?

Consider signing up for newsletters from reputable coupon websites that offer coupons for clothing, dining, groceries, and more. Utilize these coupons for the items you must buy anyway and put the money, you would have otherwise used to purchase the same had you not been having coupons, to save towards your downpayment on the car. The important step is to keep track of how much you save with coupons every month and transfer this amount into your savings bucket to save money for car down payments.

Conclusion

These are the best ways to save money for downpayment on car. If you are all set to explore various auto finance options suitable to your requirements and financial circumstances, seek professional advice for additional tips on how to save money for a car down payment.

Jack Fortin
Auto Finance Expert

Jack Fortin is one the leading car loan and auto finance experts in British Columbia, Canada. He loves to write and share car loan news and updates.



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