Tips for Saving Up for a New Vehicle

Buying a New Car

Whether it’s your first new vehicle or your fifth, there’s nothing like hopping into the front seat of your new car to drive it off the lot. For many, buying a new (or pre-owned) vehicle isn’t something they do very often, and that’s really what makes it so exciting.

 

Unfortunately, for most of us buying a new car means saving up a significant amount of money for that new car. And that’s often the hardest part. It’s not too difficult to find the vehicle you want in your driveway, but it can be extremely difficult to save enough to actually drive it home.

 

Today we’re going to offer some tips for saving up for a new vehicle. Let’s get to it!

 

  1. Determine how much money you want to spend on a monthly payment

 

For starters, you’ll want to determine how much money you want to or are willing to spend on a monthly payment. Once you figure out how much you want to spend and how much you want your down payment to be, you can start saving smartly! 

 

  1. Decide when you want to buy the car

Now that you know how much you want to spend on the down payment and monthly payment, it’ll be easier for you to figure out when you want to buy the car. Give yourself some time so you’re not making any rash decisions.

 

  1. Revise your monthly budget

 

In order to buy a new vehicle, it’s likely that you’ll have to revise your monthly budget. First to save extra cash for the down payment and once you buy the car to make the monthly payments. Just make sure you’re putting money into your savings for emergencies and your future!

 

  1. Put money in a separate savings account

 

When saving up for a new car, putting money into a separate savings account will help you keep track of how much you’ve saved. It’ll also help you track how much more money you have to save to meet your goal.

 

Starting to look for a new vehicle? Stop by our lot in Newport, Arkansas to check out all of the new and pre-owned vehicles we have waiting for you!

 

 

 

Tips For Improving Your Credit

Credit Application

 

One of the considerations when looking to purchase or lease a new or used automobile is how good your credit is. Your credit score can influence the interest rate, loan amount and repayment period you may qualify for, and keeping up on your credit and working to improve it is one of the main ways that you better position yourself to get into the car you have your eye on.

 

If you don’t know your credit scores, finding them out is a key first step. Knowing where you stand and finding out if you have any errors or problems on your report can help you plan your way to improving your score. By law, you can receive a free copy of your credit report from each of the three credit bureaus – Equifax, Experian and TransUnion every 12 months. The federal government offers this on its website, AnnualCreditReport.com.

 

Next, you’ll want to pay attention to your payment activities and history. Ensure that you continue to pay your balances or minimum payments on time and, if possible, work to pay down any outstanding debts. Credit bureaus factor both on-time payments and a debt-to-income ratio, so keeping your account current and reducing your debts will, in turn, improve your score.

 

Bankrate.com also recommends being aware of how applying for new credit can impact you. Every time you apply for new credit lines, like credit cards or personal loans, it leaves an inquiry on your credit report. This can lead to a small decline in your score for up to a year. However, with larger expense loans, like auto, mortgage and student loans, that often involve receiving multiple credit checks, lenders will ignore the repeat inquiries during a small window leading up to your loan. This window spans between two weeks and 45 days, depending on the lender’s scoring software, so try to do your loan shopping in a small window right before you intend to buy.

 

In addition, lenders also look at the length of your employment and how long you’ve lived at your current residence. They will also factor in your reported income versus your rent or mortgage obligations and other monthly payments to determine how much of a loan you can qualify for, further driving the point that doing all you can to minimize other outstanding debts will only serve to improve the likelihood of being approved for the vehicle you want.