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Preparing your next vehicle’s down payment can be a difficult hurdle to traverse. While concepts like the 20-4-10 rule can make the process easier, saving money to put down on your dream vehicle takes time. To help our you secure your new vehicle faster, here are three ways to prepare the down payment you may not have considered before.
Trade-In Your Current Vehicle
If you intend to sell your current vehicle anyway, trading it in could help you offset the down payment cost. Most dealerships are constantly looking to expand their used inventory, so your current vehicle could be used to give you an edge during the financing process. Depending on the state of your current vehicle, it could completely cover your down payment!
Start a Savings Account
Starting a separate savings account for your next vehicle’s down payment can both help you track your process and expedite the savings process. Open up a high-yield savings account at your financial institution of choice, and regularly deposit what money you can spare. As your balance grows, so will the earned interest.
Automate Your Savings
Piggybacking off of the previous tip, automating savings via direct deposit or direct debit means you don’t have to put any thought behind saving up a down payment. If a small portion of your income is automatically set aside each month, you can figure out exactly when your down payment will be ready. Knowing when your down payment will be ready will do wonders for your motivation and budgeting moving forward.
Trustworthy Lincoln Finance Advice
While these aren’t the only ways to save up for your down payment, these three options may provide you with a different approach you may not have otherwise considered. Feel free to contact the Woodhouse Lincoln finance department any time for more tips on saving up your down payment.
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