You may think a luxury vehicle is completely out of your price range. Or you may think you can’t afford a posh set of wheels until you can take out money against your 401K. However, with knowledge and a bit of budgeting, a lavish vehicle might be more obtainable than you think.
Cut Down on Non-Essentials
The first step to obtaining a larger budget for your luxury vehicle is to reduce, or even eliminate, the number of times you go out to eat or purchase frothy caffeinated beverages. Quit smoking; not only will you save money, but you’ll improve your health, and you’ll won’t smoke in your new automobile. Although the little things don’t seem like great expenses, they add up over time. Purchasing a $4.00 coffee just four or five times per week is over $50 per month. This extra money could go to saving for a down payment or be part of the monthly payment.
Higher Down Payment
The higher your down payment the lower your monthly payments will be. Don’t be in a hurry to purchase a plush vehicle with all the amenities right away. Allow your bank account to flourish a bit before you rush into anything.
Improve Your Credit Rating
A majority of people can’t just throw down a large lump sum of money on the desk and walk out the same day with a Lexus or a Jaguar. Start by improving your credit rating. When you apply for an automobile loan, you’ll have a better change of approval and will receive a lower interest rate. The lower your payment, the more easily obtainable a luxury car will be for you.
Decide if You’re Willing to Settle
Although you might have your heart set on rolling down the street in a Rolls-Royce Ghost, your bank account may alert that you that a $250,000 vehicle is out of your range. Instead, find a less expensive luxury vehicle, such as the Lincoln MKZ or Cadillac ATS, which are priced at under $50,000.
Opt for Hybrids and Eco-Friendly Models
More and more brands have entered the market with vehicles with a better fuel economy. They have eco-boosted cars. You have to remember that many luxury automobiles require premium gas to run. You’ll want to find ways to cut down expenses the car requires after you take it off of the lot.
Used Isn’t So Bad
You may want to consider purchasing a used luxury vehicle since they lose their value as soon as they leave the lot anyways. You’ll save money on the price of the car, especially if you compare private owners and dealerships to find the best rate. Plus, you’ll be able to haggle over the price.
It doesn’t hurt to pick up a part-time job online to supplement your income. You can make crafts and sell on Etsy or eBay. You could write in your free time after work, or you could do transcription, customer service or web design, just to name a few examples. You can make enough to add to your monthly car payment, or you may want to save the money to add to a savings account for the price of repairs to the car.
Related: Should I Buy or Lease an Exotic Car?