The 8 Best Tips to Saving a Good Down Payment on a Car
Tips to Save up a good down payment on a car
Picture yourself in the driver’s seat of your dream used car. The smell of fresh leather and the feel of the wheel. The sound of the engine humming with seat warmers toasting your buns. They’re all culminating into a moment of pure satisfaction. But wait! There’s a hurdle you must overcome before this dream turns into a reality—you’ve got to save up a good down payment on a car.
It might seem daunting, like a steep hill in your path. After all, you don’t even know what’s considered a good down payment on a car!
But don’t worry, we’ve got the perfect roadmap to guide you through.
Fasten your seatbelt and rev up your savings. It’s time to embark on the journey toward your dream used car together!
A Good Down Payment on a Car
– Table of Contents –
- What is a Good Down Payment on a Car?
- The Magic of Auto-Savings
- A High-Yield Savings Account: Your Secret Weapon
- Drafting a Budget for your Car
- Trimming the Extra Expenses
- Reducing Credit Card Debt
- Hands Off Your Savings!
- Extra Savings for Extra Security
- Trade-ins: A Wise Choice to Save a Good Down Payment on a Car
- We Are Ready for You When You Are
- Getting Your Next Vehicle!
- Good Down Payment on a Car FAQs
What is a Good Down Payment on a Car?
In order to know what steps are necessary to save up a down payment for a car, we first need to know what a good down payment on a car is.
This will vary for each customer.
A Good Down Payment on a Car with Stellar Credit
If you have stellar credit, chances are you won’t need much down. Many banks may even be able to allow you to put nothing down. However, we caution everyone to not take this route.
We highly recommend that even if you qualify for no or low down payment on a car, you should still put at least 20% down.
Many consider putting 20% down a good down payment on a car. It will help you save on interest and help reduce your payments.
A Good Down Payment on a Car with Bad or No Credit
If you have bad credit or no credit, your situation will be different. You may find that most places will need 50% or higher. This is especially so if you’re purchasing at a used car dealer that offers In House financing or buy here pay here.
Don’t worry, though. There are plenty a used car dealer with buy here pay here that offer much lower down payments. At Westland Auto Sales, we offer down payments on used cars that start as low as $500 down.
Again, we recommend you put at least 33%. Even if you qualify for a low downpayment car.
Working Backwards to a Good Down Payment on a Car
The second step we need to take is to figure out the max you want to pay for a used car.
Let’s say that you determine you’re going to buy a car that is $13,000 max. If you’re going to be placing 33% down, you’ll need to save up about $4,300.
May seem extreme, I know, but trust me, a higher down payment is always much better in the long run.
We now have the number to what a good down payment on a car is. This is our goal and we can work backward from it now.
Here are eight tips to save up a good down payment on a car!
The Magic of Auto-Savings to save a good down payment on a car
Putting money into savings each month is the best way, but it’s not always easy. When we see the money it somehow gets eaten up without us knowing.
Extra monthly expenses, bills, food, kids’ toys, and in-app purchases. Pretty soon, you’re out of savings!
Imagine a world where saving for a good down payment on a car is as easy as making a cup of coffee. Thanks to automatic saving deposits, this can be your reality!
It’s like putting your money on autopilot. It takes away the burden of having to manually transfer money every month.
A High-Yield Savings Account: Your Secret Weapon
Most savings accounts have an annual percentage yield of 0.005%. Sometimes, this is even lower!
*cough* Wells Fargo *cough*.
Don’t waste your time with those. Instead, try to remember that piggy bank you had as a kid.
Got it? Good.
A high-yield savings account is the grown-up version of that. It works hard to grow your money even when you’re sleeping.
Just by depositing your cash in this account, you can effortlessly boost your savings. The paid interest will automatically get added to your balance.
This could be an extra few bucks you get every month from you just taking the 10 minutes to open the account. Pretty neat if you ask us.
Budget for Your Good Down Payment on a Car
Most people hear the word budget and run screaming. Trust us, a budget is a lifesaver. It’s also the way that you can secure your financial success in every area.
You wouldn’t go on a road trip without a map, right? So why embark on your car-buying journey without a budget?
Think of it as your GPS leading to your good down payment on a car. We also suggest you try viewing it as a game. It’ll become a whole lot more fun that way.
If you need help setting up a budget, you can read our post on how to budget here.
Trimming the Extra Expenses
Imagine your expenses as a big, fluffy teddy bear. Cute, right? But what if I told you, trimming it down a bit could be the key to affording a good down payment on a car?
It is probably the most difficult thing to do, but there are a few extra expenses that you can leave behind.
By cutting costs on things you really don’t need, you free up the amount of money available to you. This will allow you to save toward your down payment for your next vehicle.
Unnecessary restaurant trips, fast food, or forgotten entertainment subscriptions. Also, gym memberships you haven’t used in months, expensive coffees, and clothes you never wear. All these are areas that you can cut down on and save a few extra bucks each month.
These savings will go straight into your high-yield savings. Once in there, it’ll move you that much faster toward your next vehicle.
Evaluate what is important to you and what makes you happy. You’d be surprised how many things you buy that don’t do anything for you. Once they are gone, you can’t even remember!
A little discipline will let you find extra dollars hiding in your daily spending!
Reducing Credit Card Debt
Credit cards can be a slippery slope to unnecessary debt. We caution everyone when it comes to credit cards. But with a good plan and a little dedication, you can reduce your balances and free up some extra cash.
It may sound counterintuitive at first. After all, I’m telling you to spend money instead of putting it away in your savings.
This guy’s nuts, right?
When you maintain a balance on your card, you incur a large charge in interest. This interest eats away at your potential savings. When you pay off your card, you won’t have to make that monthly payment each month.
This will give you plenty of extra cash to play with.
This extra cash can then go directly toward your high-yield savings. This gets you one step closer to saving up a good down payment for a car.
Hands Off Your Savings!
Sometimes, it can be tempting to dip into your savings. This is especially hard because the money is available to spend on anything that comes up.
Sometimes everything can seem like an emergency. But you have to learn to prioritize what’s important to you.
Think of your savings as a “no touch” zone.
Right now, saving up for the down payment on your next vehicle is at the top of your priorities. Constantly remind yourself about that.
Set it on your phone’s background so it stays top of mind.
Coupling this with the auto-transfer will ensure that your money isn’t spent where it’s not supposed to be.
This discipline will help you steadily work towards that good down payment on a car.
Extra Savings for Extra Security for your good down payment on a car
Always prepare for a rainy day. Always!
Since none of us know when that rainy day will come, it’s always best to save an extra 10%…just in case.
If you were shooting for $2000, make it $2200.
This is a minimal amount that could help you pull yourself out of any bind. It’ll also ensure you account for any extra fees you had not considered.
By saving an extra 10%, you’re building a safety net for unexpected costs. Plus, it brings you one step closer to your dream used car.
Trade-ins: A Wise Choice to Save a Good Down Payment on a Car
This may seem like it’s coming out of left field. But, did you know your current car could play a huge role in securing a good down payment on your next one?
You can use a trade-in to directly offset part or your entire down payment.
This could be an easy way for you to bypass much of your savings process and get your next vehicle sooner. Although, we still recommend you do both so you can have even more available!
It’s like hitting two birds with one stone: you get rid of the old while making way for the new.
Right now is the perfect time too. If you care to know why you can read our article about the current state of the automobile market.
We Are Ready for You When You Are
Whether you qualify for our buy here pay here $500 down program or need a little more, we want to have you as our customer.
If you have bad or no credit, we are the only used car dealership near me you should be considering.
We can provide you with a quality used car at an affordable price. You could be driving off with financing that sets you up to succeed and improve your credit in the process.
We tailor your payment schedule specifically for you. This makes sure that you can keep up with them comfortably.
A used car is one of the most important investments many families will make. That’s why our used car dealer strives to help good people who truly deserve a second chance get approved, but most of all, get ahead.
Getting Your Next Vehicle!
Saving for a good down payment on a car can feel a bit overwhelming. Yet, now you have plenty of options to get started!
The best tip we can give you is to contribute a hefty down payment for a used car. This will help lower the overall amount you’ll owe on your vehicle. It can also save you tons in interest and raise your chances of getting the best approval possible.
Trading in your car will get you to meet your down payment quicker. By doing it with one of our two used car dealers, even faster.
Remember to make a budget. Further, you can start an automatic savings transfer into a high-yield savings account. From there, cut down the unnecessary expenses and pay down your credit cards if possible.
Don’t let fake emergencies cause you to dip into your savings. They’re fake!
Keep what is most important at the forefront of your mind. Then save an extra 10% on top in case anything comes up.
Use Our Help to Save Up a Good Down Payment on a Car
At Westland Auto Sales, we are no strangers to people dealing with bad credit. We strongly believe that everyone deserves reliable transportation regardless of their credit history.
We pride ourselves on turning thousands of customers into happy car owners. Our flexible down payment options help us do just that. Our buy here pay here $500 down program is what sets us apart from other used car dealers. Not to mention our ability to help improve our customer’s credit scores by reporting their payment history to credit.
If you’re looking for a used car dealer with simple financing for all credit levels, we’re your answer!
With us, a good down payment on a car is just the beginning!
We invite you to learn more about our buy here pay here $500 down program and online pre-qualification process by clicking on the link below!
Q: What is a good down payment on a car?
- A good down payment is typically 33% of the car’s total price. This can range from customer to customer but we always suggest you never go below 20%.
Q: Can I negotiate my car down payment?
- Dealerships are often open to negotiation so it doesn’t hurt to try. If you genuinely don’t have what they are requesting, let them know. There may be extra avenues they can try to help reduce your down payment on a used car.
Q: Can trade-ins reduce the need for a down payment?
- Definitely! Trade-ins can significantly offset the down payment needed on a used car. Often, a trade-in can completely remove the need for a cash down payment.
Q: How can a budget help with saving for a down payment?
- A budget can help you track and control your expenses, making it easier to save.
Q: What’s the benefit of a high-yield savings account?
- A high-yield savings account offers higher interest rates. This enables you to grow your savings passively. This is one of the best ways to hold your cash. It’s considered a very low-risk investment that is easily accessible. You can also consider low-risk bonds or CDs.
We hope this article helps you understand the importance of saving up a good down payment on a car and the fastest ways to do so. It may seem like a hard process but when you steps like this it becomes easy to follow. Learning to save like a pro can benefit you and all your loved ones for more than saving up a down payment on a used car.
When you’re ready to get a car loan with bad credit or no credit, please visit our website. Be sure to take a look at most of our used car inventory on there too. You can also contact us today for more information on our in house financing options.
We look forward to hearing from you soon!
– Shameless Plug –
Contact Us Today to Get Approved For Your Pre Owned Vehicle
Thousands of other happy customers of the Fresno area just like you have already been approved and are on their path to a better future. With low down payments starting at only $500, great premiums for your trade-in, and a free warranty, you’ll be set up to succeed from the start.
Extra Resources To Help On Your Journey
We love to share the wealth! Here are some resources and trusted vendors that we personally use. They can help you take care of your vehicle as well as keep your credit and finances in tip-top shape:
High Quality and Affordable Car Parts: Advance Auto Parts
Car Audio & Sound Systems: Eonon
Premium Wiper Blades & Accessories: Clix Auto
Easy Key Replacement & Programming DIY: Car Keys Express
High-Quality Orignal and Custom Car Lighting: LASFIT
Quality Car Parts/Accessories (mats, covers, assemblies): Oedro
Premium Car Detailing Supplies: Chemical Guys
High-Performance Car Parts & Air Filters: KN Filters
High-Performance Parts: Max Speeding Rods
Speed and Performance Parts: Spectre Performance
Air Intakes: Airaid
Original & Aftermarket Wheels: OE Wheels LLC
Battery Tenders: Deltran Battery
DIY Car Extras
In the event your dealer doesn’t provide you a history report: VinAudit
To learn to recondition your old car battery: EZ Battery Reconditioning
For DIY Ford vehicle repair: Ford Shop
To learn to take some knicks out of your car’s paint: High Quality Car Spray
Personal Finance & Credit
For a DIY credit repair course: DIY Credit Repair
To help you get free of debt and increase your credit: What Lies In Your Debt?
For a high cash-back credit card (make sure you only use it as if it’s a debit card!): Laurelroad
We will keep sharing all our vendors that we have a great experience with. Only the ones we see align with our values as time goes on, both locally and nationwide.
Disclaimer: The information provided in this article is for educational purposes only. It is not financial advice. Always consult with a qualified financial professional for personalized guidance.