How to Make Your Dream Car a Reality
It’s very common for many drivers to have their dream car in mind. Whether it’s a top of the range sports car or a stylish SUV for the family, it doesn’t matter what your goal is but instead, how you’ll get there. The good news is getting your dream car can be possible with some planning and saving. The guide below looks at how you can make your dream car a reality and the steps you should take in order to secure it.
Work out how much you will need.
The first step you should take is setting a clear and confident goal. Whether you’re looking to save up to pay for your dream car with cash or save up for a deposit to put towards your finance deal, knowing how much you will need is essential. Once you’ve set your goal, you can break it down into monthly payments that you know you will be able to meet each month. Setting yourself a goal that is unrealistic will delay the process and stop you from getting the car you want. You should then open a saving account or have a family member you trust to keep the money for you. This can help to reduce any temptation to dip into it.
Spend less, save more.
When it comes to getting serious about your savings goal, you may need to reconsider your current spending habits. To help put more money towards your savings, you should assess your current outgoings. If you’re spending too much on buying a coffee each day, have multiple streaming services or a gym membership that goes unused, you could use this money towards your dream car instead. You could also help to save money by setting a budget for food shopping, having a second income, or selling some of your unwanted items.
Spread the cost.
Depending on which type of car you would like to buy, your saving goal may be unrealistic when just using cash alone. In this instance, you could consider saving for a deposit instead and buy a car on finance UK to help spread the cost. Car finance means that you can make monthly payments towards the value of your dream car until the end of an agreed term. Car finance is usually spread over 3-5 years, and you can drive the car you want whilst paying it off. It’s worth remembering that car finance is subject to status though.
Increase your credit score.
Your credit score can have a big impact on your financial life. Not only can it make borrowing money cheaper, but it can also help you get approved more easily. This is because your credit score reflects how you handle your money and any finance or credit in your name. When you make payments on time and in full, you are showing lenders that you can handle credit responsibly. Missed or late repayments, high levels of debt and no previous credit history can all affect your credit score and the likelihood of getting approved. It can be a good idea to improve your credit score if you are looking to get your dream car on finance.
Consider used cars.
We understand that for many people, the dream of owning a brand-new car is very attractive. You get to modify it how you like and benefit from that new car smell. However, when you choose to buy used, you could benefit from a car that is only a few years old but with a massive saving in price. Depreciation is the rate at which a car loses vale from when it’s manufactured and then sold. Some brand-new cars from car dealerships can depreciate as fast as 50% in the first 3 years which means by the time you come to buy it second-hand, you could be saving yourself a lot of money!