Buying a car is a mega milestone but there’s a few costs to consider like petrol, insurance and rego. Here, we look at the key expenses and ways to supercharge your savings.
Pro tip: If you want to score a bargain, shop around at the end of financial year for some epic deals. Or if you’re after a used car, visit as many websites and car yards as possible.
Once you’ve figured out ballpark costs, it’s time to set your budget and work out how much to save each weekly pay. Say the car you like is $25K and you want to buy it in 12 months. Simply divide $25,000 by 52 weeks and that’s how much you need to put aside.
Or you can do it the other way with the 50/30/20 budget split. This is where you divide your income into three parts:
Once that’s done, divide the total car price by your weekly savings amount to find out when you’ll be picking up your new whip.
Pro tip: Having your car fund in a bank account with no fees and a competitive interest rate, like our USave savings account, might get you in the driver’s seat sooner. Check out this calculator to see how your savings could grow.
Buying a car is one thing, but keeping it running is another. When deciding how much you want to spend, consider all the costs and use our budgeting tips so you’re test driving in no time.
Need help keeping your money goals on the right track? Check out our in-app budgeting tool Free2Spend.
*Linking a USpend transaction account with our USave helps to unlock bonus interest on eligible balances in your USave account(s) when you also deposit $200 each month from a non-UBank account. The bonus variable interest rate will be applied to a combined balance of up to $250,000 held in your USave savings accounts, including joint accounts. Any remaining balance greater than $250,000 will earn the USave base variable rate.
Before making a decision to acquire a USave or USpend account, you should obtain and consider the relevant Terms and Conditions available at ubank.com.au. UBank’s deposit and savings accounts are issued by UBank, a division of National Australia Bank Limited ABN 12 004 044 937 AFSL 230686.