A new-to-you car is one of the biggest purchases you’ll make. Even with the money you’ll save by shopping smart and purchasing a quality used vehicle at Casey Auto, you’ll still need a sizable sum of money for a down payment. To ensure that you’re ready to make that leap, you should take steps to start saving money to get the pre-owned vehicle you’ve got your eye on.
Figure out what your down payment will be
The first step to shopping for a used vehicle is knowing how much you can spend. Once you’ve got a price in mind, you can figure out how much you’ll need to save for a down payment. Casey Auto recommends at least 10 percent if not 20. The more you pay down, the more affordable your monthly payment will be. A higher down payment can also help you get a better interest rate.
Build a budget
Financial experts recommend establishing and maintaining a 50/30/20 budget. This means 50 percent of your income goes to things you need, 30 percent goes to things you want, and 20 percent goes to savings and debt. Within that framework, car-related expenses shouldn’t account for more than 20 percent of what you take home. That includes your monthly payment, fuel costs, maintenance and repairs, and insurance. If you find that the vehicle you have in mind will take up more of your paycheck, you may need to save more money or consider a more affordable option.
Start setting aside money
Having a savings account is a great idea even when you’re not shopping for a used vehicle. Open a savings account with your financial institution and start socking away money from every paycheck. Whether it’s $5 or $50, you should make an effort to save something every time you get paid. This adds up fast, and it leaves you with a nice nest egg that you can use for emergencies — or to cover the down payment on a great used vehicle at Casey Auto.
Whatever your wants, needs, and financial situation, the experts at Casey Auto are here to help. We have a great selection of high-quality used vehicles from the brands you trust and a team of finance pros ready to help you save.