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Before you can know how much money you're going to need to save up for a car, you have to decide on a few things. Figure out if you want a new or used car, and what kind of car you want based on what you'll primarily use it for, as that will also affect price. You can either decide on the exact make and model right away or leave those specifics for later, as you may change your mind. However, you should choose the type by asking yourself: Do you want an eco-friendly car, something more compact, or larger like an SUV? Do you want a car that's fast with a big engine, or gets great gas mileage? What are some features you want and will enjoy, and how important are safety features? Are you just going to and from work or school? Do you plan on taking road trips? Maybe you need a vehicle that has plenty of space to haul things around in. Knowing the answers to these questions will make saving up for a car much easier. There are several different ways to purchase a car like buying it in full, leasing it, or financing it. Before you know how much money you'll need to save up, you should decide what kind payment method suits you best. If you have good credit you can get a personal loan from an institution like a bank. Hire purchase is another option that's like getting a loan, but it comes from the dealer. You usually have to put down between 10% to 20% for a deposit and then make monthly payments until you pay off the rest of the vehicle. You can also lease the car which means you make monthly payments on the vehicle for a set duration of time. Now that you know what type of car you want it's time to calculate how much you'll feel comfortable spending on your vehicle; whether you're making monthly payments, or trying to save up to buy your car in one lump sum. Knowing exactly how much money you make each month and how much you spend will give you a great idea of what you can do without, and how long it will take you to save. There are plenty of online tools, like this one which will help you figure how much money you're working with. Research other finances you'll need, remember that you're not just saving up for a car, you're also saving up for the insurance and tax. It's also a good idea to have a little left over for any repairs, especially if you're buying used. Having a date to look forward to will help you manage your monthly budget and give you an incentive to stay honest in saving and budgeting. Perhaps you need the car by a certain date. Maybe you're going away to college or university, or moving to a new city, or you got a job that requires you to drive more; having a date in mind will help to make saving up for a car a top priority and keep you from spending on things you don't need. If you do this already, you're a step ahead! Whether you use a notebook, or an app on your phone or computer, jot down everything you purchase from food, to clothes, to bills. This will give you a very clear idea of everything you buy, and show you what you're spending money on that you don't need. Maybe you go out to eat several times a week. You'll quickly get an idea of how much you can save for your car when you see what the unnecessary expenses are. Now that you have an idea of what your income is versus your expenses and when you want the car, you can create a schedule that will help you start saving right away.
Find the type of car you want to buy. Choose how you want to pay for your car. Decide how much you want to spend. Calculate your current income and expenses. Pick the date you'll purchase your car. Start keeping a log of your spending habits. Develop a savings schedule.