6 Steps to Save For a Car Down Payment in Canada

6 Steps to Save For a Car Down Payment in Canada

Posted on July 16, 2022

Trying to save a down payment with low income for your next car? Want to minimize the amount you borrow on a Cambridge car loan? It is possible to save with all but the tightest budgets.

Our Cambridge car loans team outlines several ways you can save for a down payment with low income.

Create a budget

First things first. Create a household budget so you know where you are. Use a spreadsheet like Google Sheets and have one column that lists all your income and another column that lists all your outgoings. Subtract your outgoings from your income and you have what’s left over.

Add a third column with any debts you might have so you can see your position in black and white.

Use savings buckets

The majority of Canadians are rarely saving for just one thing. Therefore, the concept of savings buckets can come in useful.

Some savings apps use actual buckets to help you save. Otherwise, use virtual buckets and track them in your spreadsheet. Place some savings in each as you need to ensure you’re building an emergency fund, building the kids college fund or whatever.

Don’t worry about amounts

If things are really tight, don’t beat yourself up if you can only save $50 a month. Every little counts and will soon add up. Save what you can comfortably afford and be happy for that.

If you can save more some months and not others, give your savings the cash boost it needs. Otherwise, be content knowing you’re incrementally making yourself more financially secure.

Share the saving

Sharing goals is a simple but very effective way to save. Knowing that someone else knows that you’re trying to achieve and may hold you to account for it can offer the motivation you need.

They can also contribute to the savings too if they are in a position to do so.

Never go grocery shopping hungry

Another simple but very effective trick is to never go grocery shopping when you’re hungry. That’s when you impulse buy and end up with lots of food you’ll never eat.

Have a snack before you leave and use a shopping list. Two things that can help keep you focused and ensure you buy everything you need and nothing you don’t.

Make your own lunch and coffee

How many of us are guilty of buying coffee with our gas or at work and buying lunch as it’s easier than making it? I would imagine lots of us. Make your own lunch and take a travel mug of coffee to work and you could save anything up to $1,500 per year!

You will have to buy extra ingredients with your groceries and make lunches each day but there are serious savings to be made by doing this!

When you have saved your down payment and you’re ready for that new car, contact our team, for a great deal.

Contact Unique Chrysler for help, advice and competitive Cambridge car finance and leasing.

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