Perks Of Saving Up Before Buying A Car


My parents have been egging me on to buy a car for a few years now. As a medical representative, they say that I must always look presentable and that having a new auto will complete the classy vibe that I am trying to project. If I continue driving around my second-hand sedan, my clients may go the other way instead of buying my products.

In all honesty, I smile every time I hear my parents repeat those words. It is not because I am seething deep inside; it is mostly because I agree with them 1000%. Individuals whose job is always to be out and about need a decent vehicle instead of taking the train, walking, or driving a beat-up sedan as I do. However, my typical reply is, “There will be a perfect time for car shopping.”

The reason is that I have decided to pay off some of my student loans during my first two years in the job. Then, I got a condo for myself close to the office. I don’t want to worry about multiple expenditures at once, so I find it wise to save up my money before strolling in a dealership to get a brand-new auto.

Here are more perks of making that move.

You Can Talk To Dealers Confidently

There is a vast difference between meeting dealers with only several hundred bucks in your account and talking to someone with a few thousand dollars in your name. When you do the latter, you may space out often while calculating all the expenses that you need to pay for later. As for the latter, you can look at the dealer’s eyes directly and quiz them about cars confidently because you know that your money is enough to get one on that day.

You May Not Need To Get A Mortgage

Another benefit of saving up your earnings to be able to buy a new vehicle soon is that it will prevent you from getting a mortgage. It seems common for most – if not all – car dealerships that they allow clients to pay on an installment basis. And in case in-house financing is too much for them, they recommend asking a bank to give them a loan.


This gesture seems sweet, but it also entails that you will incur more debts. Not to mention, you have to deal with the interest, which usually amounts to 50-100% of the principal digits, depending on the loan terms and bank rates. While it may seem thoughtful at first, it will give you more financial problems in the end. So, it is better to pay cash instead of doing that.

You Can Buy Your Dream Car

Having savings will also allow you to aim for your dream car. After all, you have been stuck with a rundown auto for years. You have not complained about it even once because there are more urgent expenses to take care of. Now that you have enough money in your bank account, though, you can splurge a little by buying the car of your dreams.

Final Thoughts


If I were you, I would save up some of my salaries before buying an auto. You can see its perks above; you know that they are not far from the truth. Think about it before signing up for bank financing.

Good luck!

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