There are many excellent benefits to owning a car in Singapore, such as saving on time and providing convenience when travelling to work or back home. However, purchasing a car can be costly as you will also need to spend on monthly petrol costs and car maintenance. In Singapore, COE prices drive the price of owning a car even higher.
If you have decided to buy a car, then it is vital to know how you can save as much money as possible to afford one. Here are 5 ways you can save up enough cash to buy a car.
1. Minimise unnecessary expenditures
Minimising all expenditures that you are currently paying for is a priority. For instance, are you presently subscribed to memberships that you have not used in a long time? You should look to cancel them. This can help you save on extra expenses which will put you closer to your goal of purchasing a car.
Some unnecessary expenditures include gym memberships, costly cell phone plans, take-out and delivery meals, too many TV streaming services, and many others. If you can live without them until you purchase your car, you should actively minimise them if possible.
2. Set up a separate savings account
Opening a separate savings account for your car fund ensures that you will not use that money for any other expenses apart from your car purchase. You can also automate any deposits to your savings account. This way, a small percentage of your monthly salary will go towards your car fund automatically. This helps to enforce the idea of spending less on unnecessary expenses.
After purchasing your car, you should continue to keep your savings account open. This is because you may need it for car repairs and maintenance in the future.
3. Look for other ways to make cash
To push you closer towards the purchase of your car, you can consider looking for a side hustle or a second job. Having a second job will be worth your time and effort as it can help you accelerate your progress towards saving money for purchasing a car.
4. Compare financing options
A great way to speed up your progress in purchasing a car is to consider a personal loan. Most personal loans at moneylenders don’t require a collateral, so you can borrow with low risk. However, it is important to consider the financing options available to you so that you can compare them.
Different banks and licensed moneylenders have different interest rates for their loans. Hence, you should look to compare all of the financing options available and pick the best one for your needs.
5. Consider used over new
While there is no doubt that newer cars are better than used cars, they are also considerably more expensive. If you are looking to purchase a car, you should consider the used car market.
There are many reasons why you would want to purchase a used car. For instance, it allows you to buy a recent vehicle model for a much lower price. You will also be able to receive the same features without having to pay nearly the same amount as you would for a brand-new car.
However, ensure that you check the used car thoroughly before purchase so that you won’t face any hidden defects or problems. Ask a friend or a professional if you are unsure about where to look for any problems of a used car.
Conclusion
While cars might depreciate over time, there is no denying the freedom and convenience they give you in terms of travelling and transport. Owning a car allows you to go anywhere you need to without worrying about the availability of public transportation. It also allows you to save time when heading to work or driving back home.
If you require the help of a licensed moneylender to aid you in your purchase of a car, you can seek our help here. For those in the Northeast of Singapore, our Hougang money lender branch will be a convenient option for you. For great financial solutions that can help you achieve your dream purchase, let us be your licensed moneylender of choice in Singapore.