Rajesh Acharya went into a dealership excited to purchase his first car; he had been saving for the last few months and studied well into car maintenance so that whatever car he buys - it'd be a keeper. He was as ready as can be to take a look at what was on offer at the dealership, and thought that the potentially car possibilities would be endless.
But what he soon found out shocked him. He has not saved nearly enough, and he was told to leave as he was “too poor”. Rajesh enacted a plan for saving for a first car purchase, which we have listed below to ensure he came back and got his dream car.
1. Determine the type of car you want to buy
Knowing the type of car you want to buy will help you determine how much money you need to save. For example, if you just want a car to drive to college, work or the shops, a small car would be your best choice.
2. Consider ongoing car costs
You should also consider the costs of owning and maintaining a car, as listed in the book he read: How to Make Your Car Last Forever by Thomas Torbjornsen. You don’t want to find yourself buying a car and then not having enough money to pay for ongoing costs.
3. Create a budget and stick to it
Now you know how much money you need to save for your chosen car, the next step is to create a budget and stick to it. Look at your income and expenses and see how much you can save each week.
4. Reduce your spending
You can save up more money for your car by reducing your spending. Don’t buy the latest fashions or the newest gadgets simply because everyone else is – if you don’t need it, don’t buy it.
5. Earn more money
If you don’t have a job, go and get one. If you do have a job, consider getting another job to earn more money. There are many options available to you.
6. Negotiate the price of the car
You can cut down the amount of time you save for your first car by negotiating a lower price. Whether you’re buying from a dealer or a private seller, you can knock the price down a bit.
Hopefully Rajesh’s efforts both technically and financially will help people get their first car without too much hassle. With these tips in hand, you should be able to save up for your first car in the shortest amount of time possible.
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