No matter where you are economically, it’s possible to reach your goals and drive off in your dream ride – if you have the right plan. There are a few unique ways to save the amount you need to make a down payment, or even walk away with keys in hand.
From alternative financing to moonlighting online, read on for some helpful ways you can pad your bank account and make room for a new vehicle in your budget during the ongoing economic downturn.
Wait Until the Time is Right
Buying a car is a major purchase, and rushing into any heavy decisions can cause stress and anxiety for the owner. Understanding your personal financial situation, as well as the state of the market, can help you get the best deal.
If you’re looking to buy a new car, consider waiting until the next year’s models have been released. During this time, retailers apply steep discounts to liquidate their existing inventory. This way, you can get this year’s version at a fraction of the price.
For used cars, understanding your own timeline is helpful for navigating the process with a clear mind. Negotiating the best price is a mental game, and being too eager can cost you in the long run.
Manage Your Debt and Credit Score
If you plan on relying on financing to secure the vehicle you’ve been pining for, your credit score will play a major role in the rate and payment plan you qualify for.
Tackling your high-interest debt and paying your bills on time are the best ways to boost your credit score quickly. If you currently hold expensive balances like credit card and personal loan debt, consider opting for an alternative financing solution to reduce your interest as soon as possible. Also consider services like UWatchfree to reduce your entertainment costs.
Title loans, private loans, or even a secondary credit card can be effective for reducing high-interest debt. As long as the new line of credit charges less interest than what you’re currently paying, you’ll owe less over the lifetime of the loan.
To apply for alternative financing, simply search for “private loan applications” or “title loan places near me” to start the process. Many services offer instant rate calculators and pre-approval forms to speed up your application.
The faster you are able to reduce your debt balance to less than 50% of your total limit, the quicker you’ll be able to build the score you need.
Get a Second (or Third) Job
This tip might seem tired and obvious, since more than 13 million workers currently moonlight at least part time. However, there are more options in 2020 than ever before. Thanks to the growth of the online workforce, it’s possible to find a job for any lifestyle or schedule.
The gig economy is booming, and the structure is perfect for those who need a few hours of work here and there. You can’t always ensure that a position at a restaurant will fit in with your day job, but you can sign on to a variety of gig-based apps to work on your own time and terms.
Common platforms on the market help workers find flex jobs like:
- Ridesharing
- Food delivery
- Task management
- Shopping assistance
- Customer service
- Dog walking
No matter how much time you have, or when you’re free during the day, it’s possible to earn on your lunch break once you find the right opportunity.
For people who need an online position, there are a ton of creative and analytical jobs that are currently in demand. Coding, graphic design, data entry, website management, and blogging are all roles that can completely anywhere – as long as you have an internet connection.
Buying a car isn’t something to take lightly, and it’s possible to shave thousands off the asking price if you go in with the right mindset. Additionally, taking care of your own credit profile can help you save on interest and additional fees later on.
Consider taking these steps before heading to the lot to leave with your dream car, without the hefty price tag.