How to Afford Your Dream Car

Posted July 21, 2022 by in Lifestyle

Most people, if not everyone, has a dream car. However, due to circumstances and other responsibilities, they put aside the idea of ever owning one, as it seems unrealistic to buy it in the short term. In addition to buying the car, you will also need to factor in the tax, insurance, running costs, servicing and repairs. However, if you spend your income wisely and save some money, owning a dream car is not that far-fetched. However, bear in mind that this doesn’t happen overnight. To help your dream become a reality, here are a few expert tips. 

crop of man driving a BMW

1. Research the Car

You might think you know everything about your dream car. After all, it is the only vehicle think about whenever you think about driving. However, it is important to do thorough research, particularly when it comes to costs. It does not make sense to save up a substantial amount of money if you cannot afford to legally drive the vehicle or fix any issues that come up. 

Doing your homework on the insurance cost is imperative as it will be the biggest recurring expense. Also, you need to know about the running costs and repair expenses when necessary. 

2. Set Realistic Goals

Once you determine you can afford all the costs that come with owning your dream car, the next step is to set clear and concise goals in regard to saving. With a spending budget in place, you’ll be able to meet those goals sooner than later. 

Once you have made the purchase, it is important to continue with the savings habit. After all, you will require money for finance payments, emergencies, and the like. This will alleviate the stress of having your desired car, but cannot afford to make payments on time. 

3. Spend Less and Save More

If you want to buy your desired car sooner, take on the habit of spending less, saving more, and sticking to your budget. Keep track of your monthly expenses and revenues to ensure you stay on track. 

If you do not have a budget in place, make one as it is important in planning your expenditures and savings. By tracking your expenses, you will be in a position to eliminate unnecessary expenditures. Keep in mind that you’ll have to make sacrifices, but once you notice the growth in your savings account, you will be thankful. 

4. Invest Your Money

With your budget and goals in place, think about how you can make the most out of the savings. Consider making lucrative investments to grow your money. This will put you closer to your goal. Depending on your income, sometimes savings may not be enough to see you buy the car in an ideal timeline. 

The stock market is an example of an avenue that can get you secondary income. However, you need to be careful and make wise investments to avoid losing money.

5. Improve Your Credit Score

A high credit score is imperative for an array of reasons including hastening the process of owning your dream car. In some cases, especially if you are looking at a sports car, investments and savings may not sufficient and if you have poor credit, securing a bad loan will likely cost you a lot when it comes to repayments. By improving your credit score, you will have more affordable options when seeking financing. Some of the ways to improve your credit score include disputing credit report errors, paying your bills on time, paying your credit card balance strategically, using a secured credit card, etc. 

6. Seek Alternative Financing

If you’ve been saving for an extended period, and spending wisely, but still feel like it will take a long time to finance your car, then you may want to consider applying for alternative financing to speed up the process.

7. Sign up For Car Competitions

While the chances of winning a car in competitions are slimming, it does not hurt to participate. Who knows, you just might get lucky. There are numerous competitions online and all it takes is to buy a ticket. It might feel like a waste of money and time, but if you participate and win, you will have won something that would have taken ages to afford. Do this and implement the above-mentioned steps and you will have increased your chances of owning your dream car. 

Owning your desired car is a feeling like no other. With the above-mentioned tips, you will be able to get on the path to actually making the dream a reality. Spend and invest your money wisely, be patient and consistent and you will be thankful when you drive off the dealership.