Tips on Saving for a New Car

2017 Chevrolet Sonic

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Knowing what charges to expect when you buy a car and how much cash you need to have on hand will make it easier to meet your car buying goals. We’ve gathered information about the costs you’re likely to encounter and some simple strategies to help when saving for a car for your Indianapolis commute. Check it over, then drop by and see how easy it is to finance the car of your dreams with competitive rates at Indy Car Finance.

The Different Costs to Expect When Purchasing a Car

When financing a new or used car shoppers can expect to see many of these fees on their contract:

  • Sales Tax: If you live in a state with sales tax, you’ll pay a percentage of the car’s value when you register the vehicle.
  • Registration Fees: This is the fee the consumer pays to the state for registering the vehicle, ordering license plates, and assigning the title. It can vary based on size and value of the vehicle.
  • Documentation Fees: A fee charged by dealerships for processing the paperwork needed to make your car purchase happen.
  • Dealer Fees: Sometimes listed as “dealer prep” or “shipping”, these fees are added on by dealers to cover the cost of handling the vehicle prior to sale.
  • Advertising Fee: A fee sometimes charged by the manufacturer to the dealer to cover the costs of commercial advertising for the car.

Money Saving Strategies

USA Today recommends these clever ways to ensure you have enough cash to keep your car purchase within your budget:

  • Know Your Payment: Figure out what how much you can afford to pay each month.
  • Calculate Your Down Payment: How much cash in hand will you need in make the purchase happen?
  • When Do You Need It? Knowing how long you have before you’ll be making the purchase will help you calculate how much to put away every month.
  • Save Automatically: An automatic savings plan keeps you from spending the money elsewhere.
  • Be Realistic: Setting unrealistic savings goals or leaving no extra cash for the things you want will make it difficult to meet your goal.

Let Indy Car Financing Help

Contact us today to see how easy and affordable buying your next new car can be. Give us a call at (855) 468-6215 or stop by Andy Mohr Speedway Chevrolet at 5252 38th Street in Indianapolis, IN to speak to an associate in person.