We probably all have a dream car, one we wish we could have in our garage. Four wheels we could hop into each morning – or only on sunny weekends if you’re worried about it getting wet – and smile until we stepped out and then smiled some more as we look back at it. What’s more, our dream car doesn’t have to be a Ferrari California or something ridiculously expensive. It can, sure, but it could also be a 1967 Mustang or a 70s Beetle in cherry red.
However, the thing with it being a dream car is just that; it is only a dream, and that is what it will always be. Or will it?
Understand Your Investment
Unless you have a lot of money, an impeccable eye, a mystic ball or an epic amount of luck, the chances are that this investment in a dream car is going to lose you a lot of money. That is because most cars depreciate. Some don’t some actually go up in value, but most don’t. But understanding this is a huge step in getting your hands on one because it instills a sort of realism. It helps remind you that you are not buying your dream car for any other reason other than you own enjoyment and self-indulgence. This is fine. This is something we should all do more often.
Have Goals In Place
What better way is there to achieve your goal of owning your dream car that to have a constant visual reminder of what the endgame is. It could be that you have a poster on your wall, it could be that you drive past the dealers every day, or it could be you change your phone’s background. It doesn’t matter what it just matters that you do. The reason this is a good idea is because, well, spending that amount of money on a car you aren’t sure you can afford takes a lot of persistence, determination, and conviction. You are going to need a constant reminder of what you are saving up for, why you are not spending so much money on Costa coffees and martini espressos. Goal setting is imperative to ownership of something. We set ourselves goals in every other aspect of life, from owning a house to sending our kids to schools to where we want to be in our career in five years time; so why treat this any differently? A goal means a game plan, and a game plan is what will set you up for success.
Saving Your Money
Saving is a matter of time. It’s an unfortunate reality but a reality nonetheless. However, unlike saving money for a retirement plan, saving money for a car is a little bit easier. It could be that you need to save $5000 to get that Golf GTI you always wanted. Well, put $200 away a month and in two years you’ll be there. Two years. Of course, if you are hoping to land a more expensive car you are going to either need to put away more money a month or increase your patience. But the point is it is doable. Find ways that you can cut back on other luxury items, and put this money toward your car. Have an actual jar with the words Car Fund on it and put your loose change in it. Saving up for most things requires you to have a certain discipline. You need to have a long-term understanding in place and the ability to remain focused throughout this period. But trust us, it will be totally worth the wait and the frugal lifestyle when you get to drive around town in your shiny new wheels.
Know The Total Cost
Buying a car isn’t just about buying the car itself. There is usually a load of other costs and expenses that come with the purchase, so make sure you know what all of these are, add them together and make that your total figure. These will include things like car insurance, tax, repayments, loans, interest rates, running costs, fuel economy and all that sort of stuff. It all adds up and so it all needs to be considered. The last thing you want to do is save up for four years, hit your target, get excited and then realize that you can’t actually afford it yet. Also, plan for emergencies. Let’s say you have everything worked out and you find a private seller who has your ideal car for sale, and you buy it, and you are happy, but then the exhaust falls off. Make sure you have the means to react to that scenario because these things happen.