Planning to Buy A New or Used Car - Different Ways on How to Save

When one is planning to buy a new or used car there are several ways to save for it. The amount of money that you are going to save is dependent on the type and model of the car you are going to buy. You should get an idea about prices of cars by researching about it, say the amount of the car is 15,000 USD for a brand new car and 7,5000 for a used car. Examine your income and use the saving calculator to know the amount of monthly requirement needed for savings.

It is important to examine how to go about saving the money by making sure that you stick with it so that you can project well when you need one. Mostly people save instead of buying it obtaining a loan.The bankrate calculator for saving is very useful - see the sample below for saving on a used and new car.

There is a big difference in the amount of money needed when you want to buy a brand new or used car instead of making a car loan, that is why it is recommended that it is more advisable and ideal to save then buy the car that you want.

Most students buy second hand or used car, still they need to save for it while paying for their tuition. All can be done with careful planning and saving.

• Backyard Sale or Rummage sale - one way to save for a new car is disposing your old things that are not needed anymore. This proves to be beneficial at the same you have the chance to clean the house and make your house cleaner. Do this twice a year specially toys if you have children, furniture etc.

• Get an extra job - freelance work if you can, or weekend job. Just get an extra job if you cant raise the minimum amount needed to be save.
• Cut back on your vices or cut some luxuries like smoking or drinking and outing with friends. Do it once in awhile. Imagine if you can stop smoking, you can save like 7,500 in three years and you are healthier, almost 7 USD a day a pack is needed to buy a cigarette, if you save that amount after three years you can have a down payment of a used car.

• Put your money in the bank - Check the best offer of interest rate. - the interest rate of the bank which is added to your savings is accumulated through time. Just be patient and consistent and when you want to lessen the time to save for it, then you can always added extra savings. Mostly financial analyst recommend that you save at least ten percent of your earnings in a month. If this is not enough then you can have an additional job so that you can meet your target amount of money needed for the car. You can save daily if you want, set aside the needed money daily in a piggy bank then put it in the bank at the end of the month.
• Buy used items specially household maintenance equipment, monitoring your electricity consumption, eat in, buy by the bulk when you go shopping for food. The amount of money you save, you can add it to savings.
  

• Planning for the car you want - What kind of car do you want depends how much money you are going to save. Car prices depend on the model, make condition and the size Used cars are more cheaper. The type of engine or if it used diesel, convertible, gas or it is a hybrid car makes for the price. Say you want to buy a new car worth 15,000 five five years from now, theoretically you will have to save three thousand a year while putting it in a bank so that you can have an interest. In that way the interest can hep you with other expenses when you buy the car.
• Know your budget - look at the sample computation below between a used and a brand new car. Target the amount of money needed.

• Beginning date of savings -- January 15, 2011
• If you want to save 15,000 and then buy a car after five years
  
• Duration - 5 years
• Interest rate at the bank - monthly compounding - 1.25% (Capital One bank) Rates ranges from 1 to 1.25%
  
• Will skip two weeks each year
• Monthly needed savings 242. 93 or 7.99 daily so that you can have the 15,000 after five years

Source on How to Compute : Bankrate Saving Calculator

• Beginning date of savings -- January 15, 2011
• If you want to save 7,500 and then buy a car after three years
  
• Duration - 3 years
• Interest rate at the bank - monthly compounding - 1.25% (Capital One bank) Rates ranges from 1 to 1.25%
  
• Will skip two weeks each year
• Monthly needed savings 197.84 or 6.5 daily so that you can have the 15,000 after five years

Source on How to Compute : Bankrate Saving Calculator

1. Be sure to check the carfax or bring along a mechanic to check the car
2. Test drive the car first
3. Ask the one who is selling the car why he/she is selling it
4. Haggle for the price when you can