Perhaps the pandemic hit you with some unexpected expenses, or maybe it even allowed you to put some money aside for those deep pocket items that you truly need!
When financing a car, the higher the deposit you pay, the lower your monthly instalments will be, putting less pressure on you by reducing your monthly outgoings.
Saving up for a car deposit can be difficult, but there are several things you can do to come up with the amount you need before you even realise it! Read on to discover 10 ways to reach your goal.
1. Calculate How Much You Need To Pay
The first thing you need to do is calculate how much of a deposit you actually want to put down. Whether it’s 10% or 20%, think about your overall expenses and how long you’re actually willing to put money aside to pay for the car.
If you are financing a car, paying more upfront will significantly reduce any stress about paying back the loan every month, and will reduce the impact on your overall living expenses.
2. Get A Side Hustle
One positive thing to come out of the pandemic is that a whole world of opportunities has opened up. Have you noticed the people around you becoming more entrepreneurial?
Think about your hobbies, and try to make a second job out of it - it’ll feel more like sharing your passion than work, and it’s a great way to boost your income and contribute to your car deposit!
Whether you bake and sell cakes, take your friends’ dogs for walks or teach kids how to play the guitar online, you can easily earn money while doing something you love!
3. Use Cash
It’s the 21st century, and our day-to-day life reflects that. Being able to pay for anything with just a tap of your card or phone is truly a groundbreaking technological invention. However, such an abstract concept of money makes it difficult to keep track of how much you’re actually spending!
Using physical, paper money can be a shock to the system when you see how much you actually spend each day. Go without cashless payments for a month and see how much your spending habits change!
4. Sell Or Trade In Your Car
If you already have a vehicle but you’re in the market for something new, selling your old car is a great way to secure the funds you need for your deposit.
Trading in your car is another useful way of getting another, and you can sometimes part exchange your current car instead of putting down a deposit at all!
5. Ask Around
If your family is willing to help out, why not ask them if they can help you finance your car? Whether they lend or gift you some money, they’re probably happy to no longer be your personal chauffeur!
If your birthday or another special occasion is coming up, you can ask for money towards your car deposit instead of a material present. Your friends will love to pitch in for a useful gift that won’t only benefit you, but also them - they’re bound to ask for a lift at some point!
6. Sell Your Belongings
If you have a few unwanted gifts fated to sit in a drawer until the end of time, why not put on a jumble sale or sell a few bits and bobs online to get some extra cash. You don’t have to sell your most prized possessions, but maybe it’s time to get rid of that jumper you bought 10 years ago.
Keep the items that spark joy in your life, and feel positive that you’ve decluttered your home whilst earning some extra income.
7. Portion Out Your Salary
Whether you are paid every week, fortnight or month, take a small percentage out of your salary. Whether it’s 5% or 20%, you’ll see a significant difference in your car deposit funds in no time at all!
Set achievable goals and save your pennies - you don’t need to put the same amount aside every month. You can even open up a savings account specifically for your car deposit. Soon, the pounds will take care of themselves.
8. Downsize Where It’s Doable
Nobody really enjoys budgeting, but when it’s for something you really need, it’s one of the best ways to save money!
Cut down on the most unnecessary purchases in your life, such as a morning coffee from your local coffee shop - there’s coffee at home! Do you know what’s more rewarding than a Friday night takeaway? Buying a cheap cooking book and making a delicious meal for yourself!
Over the next month, why don’t you try to limit your frivolous purchases and see how much you can save? Who knows, it may change your spending habits for life!
9. Look For Deals
If limiting all of your luxury purchases is too extreme, there are other ways to save money while still spending. Look online for deals and ‘voucher codes’ for your favourite websites - if you really need a new outfit for May 17th, at least search for a discount!
Going to the supermarket can become an expensive event, so make a shopping list and stick to it. You can also sign up for membership cards to your local shop, as they’ll send you plenty of deals to help reduce your costs.
10. Get Car Finance
If you don’t think you’ll be able to save much with any of the suggestions on this list, you don’t need to worry! There are plenty of car finance brokers who offer no deposit options, so you can still get the car you’re after.
Without making an upfront payment, the price you pay each month will most likely be higher, but you’ll still be able to get your ideal car at an affordable rate over one to five years.
At Quick Car Finance, we offer all kinds of car financing options, from 0% deposit to Hire Purchase Contracts, and will guide you through the best course of action that suits your needs.