before you buy a car

Saving for Your Dream Car

When it comes to buying a car, why does it help to have money saved?

1. It can reduce the size of your car loan.
2. It can reduce the amount of interest you end up paying.
3. Having cash on hand makes you a more desirable buyer.

ALL of these statements are true. Car loans often require a down payment. Making one will reduce the amount you owe and limit the amount of interest you pay. Having savings in your pocket also makes it easier to negotiate a good deal. Here's a painless way to build a nest egg: Pay yourself first. Each time your paycheck is deposited into your checking account, have the bank or credit union automatically transfer a predetermined amount into savings. Given the money is put into savings before you ever see it, you won't even miss it.