5 Smart Tips To Help You Save for a Luxury Car

All purchases in life require money and the art of saving. When it comes to buying a brand new car, the process is no different, however it is much more extravagant. Unlike saving up for a piece of furniture, a cellphone or a television, vehicles are quite expensive, especially if you've got your eye on a luxury brand. There are many methods to saving, whether you keep a rainy day fund on the kitchen counter or still use a piggy bank to stash extra cash. The savings process may sound long and dreary but it doesn’t have to be, and despite what many people may think, buying a luxury car simple with these few simple steps.

Set a Goal

The very first step towards buying a luxury car is to consider your options from a financial standpoint. Rather than fantasize about being James Bond on your way down the Don Valley Parkway each morning, consider what you can realistically afford over a select period of time and develop a payment plan that won’t launch you into crippling debt. Most luxury car owners do not pay in full, given that the average price of a luxury model compared to a non-luxury brand is generally higher. Calculate a monthly payment plan that works with your lifestyle, and remember to add in a bit of wiggle-room to accommodate any unplanned related expenses, like maintenance or insurance costs.

Calculate Your Down Payments

There are a host of free online tools that can estimate the monthly costs of your vehicle, but the easiest way is to visit us at the dealership and develop a financing plan that caters to your financial abilities and personal lifestyle. Remember to consider all of your monthly expenses that are unrelated to the car and factor in all vehicle-related expenses so that we can help you in the best way possible.

Pick a Date

Buying a car is thrilling, but the day you decide to buy also marks the day you will need those funds. When it comes to luxury cars, most buyers have been saving for a longer period of time than the average driver who needs a reliable vehicle for everyday activities. Once you decide how much you can afford to spend, including down payments and monthly loan instalments, the final element is timing. It’s important not to rush into anything because of impatience. The longer you wait to buy, the more time you have to save, which could impact the brands and models available to you. If you really need a vehicle for work or other activities, it might be best to consider a cheaper alternative and spend the extra money on accessories.

Commit to Saving

The biggest misconception that drivers have about luxury car owners is that they must be born rich to afford it. However, many luxury vehicle owners came by their vehicles with honest hard work and savings, just as you can! If you really want a luxury vehicle, you must be prepared to sacrifice comforts and commit to your car fund. One of the easiest ways is to select a direct deposit option on your paycheck and have a little from each cheque go into a savings account. That way, the process is automatic and you don’t have to worry about spending it all at once. Another alternative is to open up a separate savings account primarily for the expense of your car, or set up a plan at your bank that sends a dollar amount from every checkings transaction, directly into your savings account with each use of your debit or credit card. You can also set a personal weekly goal to deposit a specific amount of money based on your payment calculations into your account and keep a schedule handy.

Remember to Have Fun

Car shopping should be fun and shouldn’t cause emotional distress. While you’re saving, remember to take time to enjoy the luxuries you did before you started saving, and don’t punish yourself if you fall short of your goal. Life is unpredictable and it’s crucial to be realistic about how far you’re willing to go for the sake of a car. Cutting out those 3 Starbucks coffees a day in favour of bringing your own mug is perfectly acceptable, but don’t beat yourself up if you want to see a movie Friday night.

Are you interested in purchasing a luxury vehicle? One of the best things about Somerville Auto is that we offer only the finest pre-owned luxury vehicles, all at incredible prices! Browse our pre-owned luxury vehicles, and keep an eye out for our exotic cars and luxury SUVs! Want to learn more about purchasing a luxury vehicle? Call us today at 1-(877) 503-5102 or contact us online for quick answers to all of your questions!

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