Tips for Saving for a New Car | Luther Kia in Inver Grove Heights, MN


Getting ready to purchase a new car is an exciting time for anyone, but if you’re worried about paying for the car, it can be a stressful situation. Just because you don’t have a lot of money to spend doesn’t mean you can’t get yourself a quality car that you love; it just means you have to be more disciplined with your finances while you’re saving for your down payment and then while you are making the payments.


Aside from making a budget and being smart with your money, there are a few very easy things you can do to put back a little extra money towards the purchase of a new car.


Save your change.

This is one of the easiest things you can do to save your pennies (literally!). Sure, it won’t get you rich quick, but you’d be surprised how much that spare change can add up over time. Make it a habit to dump change out of your wallet or pockets at the end of the day into a special jar or even an old-fashioned piggy bank. You’ll never miss those coins and after a while, you’ll be amazed at how much you’ve saved!


Implement the Five Dollar Savings Plan.

If you’ve been on Pinterest for any amount of time, you’ve probably seen the amazing “Five Dollar Savings Plan” praised by frugal bloggers everywhere. The premise of this plan is simple: Every time you have a $5 bill, don’t spend it, but instead put it in a jar or some other container and leave it alone. People have had great success with this, saving hundreds and even thousands of dollars just by putting back every $5 bill they get.


Another bonus? Chances are, you’re using a $5 bill to buy a snack or expensive coffee that you don’t even need anyway. If this is the case, you’ll also help cut back on unnecessary spending and instead save that money for something worthwhile!


Use a credit card with cashback rewards.

Several credit cards (and even some debit cards!) offer cashback for purchases made with the card. So every time you charge something on the credit card, you get a percentage of that money back (usually between 1-5%, depending on the card and what you’re purchasing). Usually, the rewards amount can only be applied toward your credit card bill and you cannot actually request a check for the amount. If this is the case, you can apply the cashback rewards to your credit card statement and then move that amount into a savings account for your new car. As long as you are responsible with credit cards and pay them off in full every month, this strategy is an easy way to get some free money to use towards your down payment. (Plus, it can help build your credit to get you an even better rate when you finance your new car!)

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While none of these tips will pay off a car in full, they can be great additions to your savings plan when you’re trying to put back money for a new car. With small changes like emptying your pockets of change, you can get one step closer to that new car!


If you’re already ready for a new car, check out our inventory at Luther Kia in Inver Grove Heights, MN!


You can fill out a finance application before you ever set foot on our lot to make the buying process even easier.
Categories: Finance
Tags: finance, saving, tips

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