Saving For Downpayment From Scratch

[CM581978]

As ashamed as I am to be asking this, how can I or should I save up for a downpayment from scratch? I have absolutely no equity, as I used that from my previous car to pay off debt. Or is there a clear cut method on how much a downpayment should be?

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[jasonstang]

How is your credit score?
And income enough to have a loan?

 

[Khyber]

depends on what you're doing. I didn't even do a down payment myself. There was no need too with my loan. Instead I bought exhaust and lowering springs immediately after I bought the car.

 

[PJR202]

You don't have to have a downpayment unless your financier isn't able to loan you enough to pay for the car vs the actual value. It would only be a couple thousand bucks though.

Or am I totally missing the question?

 

[stang1971]

i dont smoke and i rarely drink, so saving $$ wasnt hard for me... make a 6 month budget.... stick to it and you will be amazed on how much you can save.

 

[Rdot9]

Save. Save. Save. Cut back on things that aren't necessity, find ways to get cheaper items you need to buy. Also having good credit helps a lot.

 

[Higgs Boson]

you save money by not spending it. pretty simple.

 

[BMachine]

As ashamed as I am to be asking this, how can I or should I save up for a downpayment from scratch? I have absolutely no equity, as I used that from my previous car to pay off debt. Or is there a clear cut method on how much a downpayment should be?

Well if you're going for the GT i suggest a down payment just to lower the monthly a bit, since brand new they can get pretty pricey as you spec them out + insurance is a doozy if you're younger. You might be able to get away with no down payment on a v6 or Eco if that's your style and then go straight into modding with the saved money, that's what i did, $330 monthly payments and modded up as soon as i bought the car, although i did have like 4k equity going towards the new loan.

Just decide what your maximum out the door price would be, by calculating what would be an acceptable monthly without causing any sort of financial strain. and save accordingly.

and may i recommend going for a used 2015 under 10k miles, this was the first new car i bought and the depreciation definitely was an eye opener lmao. if i could go back and do it again i might have held out for a used California special GT to come up on the used car lot

 

[soldier989]

First and foremost, you neeed to have the correct mindset for saving money towards the car you want. It's amazing what kind of power and drive a person can have when they focus on getting something they want. Whether that want is a new house, car, job...etc. Once you have that mindset, you'll find your ways of automatically saving money in places where you can. Every decision you make, you can start to ask yourself "will this negatively effect my goal?"

In the end, don't give up and keep your eye on the prize. You learn how to save now, you learn a skill for life.

 

[Billy1]

The first thing you need to do is a monthly budget. Write it on a sheet of paper or on a spreadsheet on your computer. Make 2 columns: 1 is your monthly income, the other is your monthly expense. Then see how much of your monthly budget you can devote to coming up with a down payment and stick to the budget. If you can arrange for your bank to transfer a pre-determined amount into a savings account each month that will make it easier. That way you will build up the down payment with having to think about it every month.

If you can afford 10-20% down, good. That way you'll have a little equity in the car-just in case any unforeseen circumstance occurs.

 

[TruBlu16GT]

Beg, Borrow, Steal.

Or, like I did, sell off a few toys and use your annual bonus. I came up with 25% down, plus all the incentives offered. My monthlies are less than a co-worker is paying for a used 8-year old Honda Civic!

 

[NowInSixth]

What these men said already. Make a budget and stick to it.

 

[rubyinla]

If you drink Starbux or energy drinks, stop. That's probably a couple of hundred bux a month. Bring a sack lunch to work. Leave your debit card at home. Only carry one credit card for essentials & emergencies and PAY CASH. It's way too painless to whip out a debit card than pull out a Jackson. You'd be surprised how much just disappears.

Track your spending. You can use www.mint.com, which is free.

By the way, do you have an emergency fund? Are you putting cash into a 401K ? If not, maybe you should be looking for a less expensive car?

Good Luck..

 

[cbass]

Save up some cash, buy a kilo, sell dimes. Repeat a few hundred times, and you can buy the car without monthly payments.

 

[armykyle1 [HACKED ACCOUNT]

credit union. 3k down on 30k for decent credit.

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