Whether it’s your first ride, a sensible upgrade, or just something to get you from point A to point B, buying a new car is a big deal. In fact, studies show that the average American owns between 6 and 10 vehicles over a lifetime—which happens to match the average number of romantic partners. Coincidence? Maybe. But it’s a good reminder that cars, like relationships, take a little thought, commitment, and planning to get right.
So, if you’re ready to take your car relationship to the next level, here are a few of our favorite tips on how to save for that future ride.
1. Define Your Ideal (but Realistic) Ride
Before you start saving, decide on the type of vehicle that makes sense for your lifestyle and budget. Are you looking for a used car or a new one? Do you need something fuel-efficient for commuting? Extra space for your family or hobbies? Consider your options, but don’t get too specific unless you’re aiming for a specific dream car.
2. Set a Realistic Goal
Next, decide how much you want to spend and calculate your down payment goal (our Car Loan Calculator is a helpful tool for this task). Experts recommend aiming for a down payment of at least 10% on a used vehicle and 20% on a new vehicle.
Most importantly, as you calculate, remember that the cost of owning a car goes beyond the sticker price. So, be sure to factor in other expenses like taxes, registration, insurance, interest (if financing), fuel, and maintenance. In Oregon, for example, AAA reports the average monthly cost of car ownership is around $894.
3. Open a Dedicated Savings Account
Once your goal is set, open a dedicated savings account to keep your car fund separate from your monthly bills and everyday spending money. A high-yield savings account or Money Market account is a good option, especially if it lets you set up automatic transfers. Some credit unions (including Maps) offer savings tools like direct deposit, automatic transfers, Round Up Savings, and goal calculators designed to help you set goals and build your balance over time.
4. Make a Monthly Savings Plan
Divide your savings goal by the number of months you have until you plan to make your big purchase. For example, if you need $5,000 in 12 months, aim to save about $417 each month.
Add direct deposit or set up automatic transfers to your savings account so you don’t forget (or accidentally spend the money on something else).
5. Cut Costs Where You Can
A good savings plan starts with a solid budget, and it doesn’t have to be brutal. Even small changes can help you reach your goal faster and build momentum. For example:
- Cook at home instead of eating out
- Cancel unused subscriptions
- Shop secondhand or use coupons
- Reduce your energy consumption
- Shop with a list instead of browsing
Also, if you have the time and energy, explore some unique ways to earn extra cash. The more you save for your down payment, the better deal you’re likely to get. So, consider taking on a side gig, picking up some extra hours, or selling items you no longer need.
6. Keep Your Eyes on the Road Ahead
As you save, you might be tempted to dip into your car savings for other expenses, but try to stay focused. Check your progress each month and celebrate milestones along the way.
If your timeline or income changes, don’t give up. Adjust your plan and keep moving forward.
7. Start Shopping
As you get closer to your goal, start looking at cars.
Once you have a general idea, check out prices online or visit a few dealerships. Many local dealerships allow you to finance your vehicle through Maps Credit Union right on the lot. Or, you can visit us and get pre-approved for an auto loan before you start shopping. That way, you’ll know exactly how much you can afford—and you’ll be in a stronger position to negotiate.
Get Ready to Roll
Saving for a car takes time and commitment, but the payoff is worth it. Whether you’re buying from a lot or a private seller, walking in with cash or a solid down payment puts you in a stronger position to get the best deal.
Need help getting started? We’d be happy to walk you through your options and help you set up a savings plan that fits your life. Or—if you’re ready to buy now—our lending team can help you finance your ride and hit the road. You may even be able to score 90 days with no payments if you take advantage of our Summer Auto Loan special.