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A car is one of the biggest purchases of your life. Here’s how to reach your savings goal at speed.
Avoid the interest that comes with financing your car by saving up what you need to buy a car outright.
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Not only will it save you money, it will give you more time to do your research and find a car at the best price.
Here are some money tips to help you reach your goal:
1. Turn your current car into a billboard
Brands are looking for car owners to become mobile billboards for them, and will pay you cold hard cash to advertise their latest and greatest on your car.
From big banks to Lego, major brands will pay companies like Wrappr to find vehicles travelling on specific routes they want to target in advertising campaigns.
Sydney father-of-three Sylvester Arraiza drives his kids to school in a Polestar 2 wrapped in an ad for Lego and revealed to Drive that it earned him $500 a month.
2. Open a separate account
Set up good money habits by establishing a budget. Next, automatically transfer a set amount of your income that goes directly into a separate bank account for the car when you get paid.
A direct-debit approach means you won’t miss the money coming out of the account, and your car account will build without much effort on your part.
Consider looking into a high-interest savings account, which will give you a decent amount of interest along the way. The best out there right now are offering around five per cent interest.
3. Switch suppliers
Switching to cheaper suppliers can save you a lot over the course of a year. From insurance, energy companies to your broadband provider, if you spend a bit of time looking for a better deal and switching, you could save hundreds to stash in your car saving account.
4. Sell your current car privately
If you’re upgrading your old car to a new vehicle, consider selling your old car privately.
Trade-ins won’t yield you as much as selling your car privately, so be prepared to put in a bit of work and sell your car privately to make a little extra, which you can put towards your new car.
Take the time to get great photographs of your car, and write great copy with lots of detail for potential buyers.
5. Get a savings app
There are lots of budgeting and savings app out there, which can help you bucket your money and channel it into your car account, so take the time to explore the app store and see what appeals to you. Check out Stash, Acorns, which enables you to invest spare change, and Clarity Money.
Having the physical reminder of your savings goal on your phone is a great way to stay motivated.
Also check out the Raiz app, which enables you to round up and invest your spare change with as little as $5.
6. Rent out your carpark
If you live in a busy area where there are few carparks, chances are you could make hundreds of extra dollars by renting out your empty car space.
Whether you’ve got a city apartment with a carpark you don’t use or a garage in the suburbs that would make ideal storage for someone about to move house, look at websites able to help you monetise the space to save for your new car.
RELATED: ‘I make hundreds of dollars a month from my car space’
7. Embrace the gig economy
To get behind the wheel of the car of your dreams, you might need to look at other revenue streams aside from your primary job.
The gig economy offers plenty of ways to earn some extra income. Consider things like renting out your garage, driving for Uber, renting out your spare room or monetising a hobby, like baking, beekeeping or selling home-made items online.
If you’ve got items around your home you no longer need or want, list them online and start turning them into cold hard cash to stash in your car account.
The post The fastest ways to save for a new car appeared first on Drive.
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