1) Figure Out Your Down Payment

Before you start car shopping, take a sec to figure out how much you can comfortably put down. This cash will affect what cars you can afford. Aim to put down around 10% on a used car and 20% on a new one. Once you’ve got that sorted, you can start hunting for the best financing options out there. Remember, cash is king, so try to go this route if you can!

2) Pay Cash If You Can

One of the smartest moves when buying a new car is to pay in cash. Cars lose value fast after you buy them, so they aren’t the best long-term investment, but that doesn’t mean you can’t get a good deal! Paying cash upfront can save you from interest fees that come with financing or leasing. Plus, many dealerships offer discounts for cash buyers, which is always a nice perk.

3) Budget for All the Car Costs

Don’t forget about the costs that come with owning a car! It’s key to budget for things like monthly payments, insurance, gas, maintenance, and more. Using personal finance software can help you sort through what’s necessary and what’s just nice to have. If you’re still in the process of deciding on a car, check out Consumer Reports to get an idea of what you might be looking at expense-wise.

4) Sell or Trade Your Current Ride

Got a car you’re not using? Selling it or trading it in can really help cut down the cost of your new ride. Not sure what it’s worth? There are plenty of online tools to help you figure that out. Even if your old car isn’t in great shape, you might be able to cash in from the insurance to help with your new purchase.

5) Shop Around for the Best Price

Just like you wouldn’t pick the first house you see, don’t settle for the first car deal that comes your way. Prices can vary a lot, and sometimes a great deal isn’t as fantastic as it seems. Make sure you compare prices to ensure you’re getting the best bang for your buck. This also gives you some leverage when negotiating with dealerships—don’t be shy about asking for extras like free oil changes or extended warranties!

6) Don’t Hesitate to Negotiate

Most people don’t pay the sticker price for a car, so don’t be afraid to negotiate! Factors like add-ons and your credit score can play a role in the price, so make sure to inspect any car you’re considering for hidden flaws. A little haggling could save you hundreds!

7) Take Your Time

It’s pretty rare for someone to walk into a dealership and drive off with a new car that same day. Don’t rush things—take the time to explore financing options and improve your credit score if you need to. Using personal finance software can remind you about financial deadlines and help you keep track during this process. Walking away from a deal can sometimes lead to even better offers, so don’t be afraid to do that!

8) Read Everything Carefully

Exciting as it is to buy a car, make sure you don’t skim through your loan contract. You might miss crucial info that could cost you later on. For example, some contracts have penalties for paying off your car early. Also, double-check that any upgrades or addons you want are clearly included. Reading the fine print is essential to getting exactly what you’re after.

9) Consider Buying Used

We all know that new cars lose value as soon as you drive off the lot, right? Buying used can save you a ton of money. You’ll often find better deals on models that are just a year old, and there’s a good chance your insurance and maintenance costs will be lower, too. Plus, last year’s models are usually past their initial kinks.

Ready to save up for your new wheels? With CalendarBudget, tracking your income and expenses is super easy—all in a calendar app for your phone. You’ll have a clear view of when you can afford to pay cash for your new ride or how much you can start saving now. Prioritize your spending and keep tabs on where your money goes. Want to give it a shot? Contact us online to start your FREE TRIAL today!