Imagine starting up the engine of that slick sports car you’ve always dreamed of. Or finally having the money to buy a stable vehicle to get you from A to B that will last forever. No matter your style, buying your dream car can seem like a total pipedream. Heck, it’s a big purchase. But there are all sorts of creative ways to get the wheels you’ve always wanted. Here’s our guide on ways to finance a car.
1. Know your financial limits
Yes, you want to buy your dream car. But first, take a step back and check in with reality before taking the plunge! It’s a good idea to make sure the car you’re purchasing is within your means. Do you have enough cash on hand and some to spare? Or adequate capital on the loan you’re looking at? If not, try changing directions by looking at an alternative model. That way, when it comes time to pay, you won’t stress. Plus there are more costs to car ownership than just buying the vehicle.
2. Make a budget
Okay, so you’re not willing to budge on the make and model. It’s your dream car we’re talking about here! But to buy your dream car you’ll need to get a handle on your finances. That means you’ve got to know how much money is coming in and how much money you’re spending on a regular basis. Yes, it’s time to finally make a budget.
Start with a savings plan and set some goals. When are you hoping to buy your dream car? Three months? Six? A year? Plan accordingly. It may not happen overnight, but it’s possible if you stay motivated and stick to your goal of finding ways to finance a car.
Your desired purchase date will determine how you make your budget. Try saving your receipts, estimating your expenses, and making a spreadsheet to track it all. Are there things you can live without? What are you spending way too much on that you can cut? Make simple changes like brewing that pour over coffee at home instead of buying it at a shop every morning. Budgeting may seem tedious in the beginning, but once you’ve got the keys in your hand it will all be worth it.
3. Improve your credit score
Part of your budgeting plan may include hiking up that credit score. Why? Your credit score determines if you can get a loan, how much you’ll get, and the interest rate levels. It’s pretty difficult to buy a car outright in cash, which is why many buyers finance their cars and pay off the loan over a period of time.
A great way to raise your credit score is to pay off any existing debt you already have. Student loans? Credit card debt? Try paying off some of those loans before taking on another one. You can also raise your credit score by opening up a line of credit with a credit card and paying it off in a timely manner.
4. Buy a used car
New cars may look like the best option, with their new car smell and shiny engines. But the value of a car drops drastically the second it’s driven off the lot. You’ll have to do a bit more research if you’re buying your dream car, but it’s definitely worth it. Check out used car dealerships for deals on almost-new vehicles. You can save a ton of money and may even still get that new car smell.
5. Wait for the right moment
Once you’ve got the money saved, take your time in finding the right car. Don’t just take any offer. When you buy a dream car, you’re likely looking for a specific model. And you probably want to stay in a specific price range. So do your research and wait for the perfect car and the perfect moment. It’s worth it to wait and save the money.
6. Buy with a buddy
How will you buy your dream car if you’ve only got half the cash? Buy it with someone else. Sharing a car with a spouse, business partner, trusted friend, or family member is a great way to split the costs. Become a one-car family and share the load.
7. Use your car to make money
Today, there are so many ways to make extra cash, which in turn are creative ways to finance a car. Once you’ve bought your dream car, utilize it! Take on a side hustle with your new ride using popular rideshare apps like Uber or Lyft. Work with a delivery app like Roadie or Postmates and deliver packages or food. Drop groceries off with Instacart. Or even help people move with TaskRabbit.
8. List your car with Avail
People always say cars are investments with no returns. But that’s where Avail changes things. If you’re looking for different ways to finance a car, you can basically turn your parked car into cash when you’re out of town or simply not needing to drive for a bit, and earn up to $25 a day by sharing your car.
If you’re concerned about protecting that dream car you just purchased, not to worry. You get liability up to $1 million from Allstate on every single trip. And Avail monitors your car’s location at all times.
It’s so easy make extra money! Sharing your vehicle with people like you is an easy ticket to finally buy your dream car.