Having saved up enough money to cover the value of the car is extremely helpful in this scenario because you can spend most of that money on a large downpayment
for a loan. This is the best of both worlds, as you can get the car you want while keeping some money in your pocket for any unexpected repairs. You’ll also build your credit if you make regular, on-time payments to your car loan.
Don’t forget to budget for car insurance when you buy a new car. If you opt to get a partial loan on the car, then your lender will require full coverage. A brand new sports car will be expensive to insure, but there are still ways to save.
Try using the number-one-rated car insurance app, Jerry
, to find the best deals. Jerry compares rates from more than 50 top providers, including Nationwide and Travelers, and delivers the best deals to your phone in minutes for free
. The average Jerry user saves $879 a year
on car insurance.