There are many excellent benefits to owning a car in Singapore, such as saving time and providing convenience when travelling to and fro from one’s home and workplace. However, purchasing a car can be costly as you will also need to spend on monthly petrol costs and car maintenance. In Singapore, COE prices drive the price of owning a car even higher.
If you have decided to buy a car, it is vital to know how you can save as much money as possible to afford one. Here are five ways you can save up enough cash to buy a car in Singapore.
1. Minimise unnecessary expenditures
Minimising all expenditures that you are currently paying for is a priority. For instance, are you presently subscribed to memberships that you have not used in a long time? You should look to cancel them. This can help you save on extra expenses which will put you closer to your goal of purchasing a car.
Some unnecessary expenditures include gym memberships, costly cell phone plans, take-out, and delivery meals, too many TV streaming services, and many others. If you can live without them until you purchase your car, you should actively minimise them.
2. Set up a separate savings account
Opening a separate savings account for your car fund ensures that you will not use that money for any other expenses apart from your car purchase. You can also automate a set amount of money monthly to your savings account. This way, a percentage of your monthly salary will go towards your car fund automatically. This helps to enforce the idea of spending less on unnecessary expenses since your disposable income in your spending account has shrunken.
After purchasing your car, you should continue to keep your savings account open. Be sure to keep the funds in there growing — you may need it for car repairs and maintenance in the future.
3. Look for other ways to make cash
To push you closer towards the purchase of your car, you can consider looking for a side hustle or a second job. Having a second job will be worth your time and effort as it can help you accelerate your progress towards saving money for purchasing a car.
4. Compare financing options
A great way to speed up your progress in purchasing a car is to consider a personal loan. Most personal loans at moneylenders’ don’t require collateral, so you can borrow with low risk. However, it is important to consider the financing options available to you so that you can compare them.
Different banks and licensed moneylenders in Singapore have different interest rates for their loans. Hence, you should look to compare all of the financing options available and pick the best one for your needs.
5. Consider used over new
While there is no doubt that newer cars are better than used cars, they are also considerably more expensive. If you are looking to purchase a car, you should consider exploring the used car market.
There are many reasons why you would want to purchase a used car. For instance, it allows you to buy a recent vehicle model for a lower price. You will also be able to enjoy the same features without having to pay nearly the same amount as you would for a brand-new car.
However, ensure that you check the used car thoroughly before purchase so you won’t find any hidden defects or problems later down the road. Ask a friend or a professional if you are unsure about where to look for any problems with a used car.
While cars might depreciate quickly over time, there is no denying the freedom and convenience they give you in terms of travelling and transport. Owning a car allows you to go anywhere you need to without worrying about the availability of public transportation. It also allows you to save time when heading to work or driving back home.
If you require the help of a licensed moneylender to aid you in your purchase of a car, you can consider Goldstar Credit. We offer competitive interest rates, flexible repayment plans, and a fast approval process.
Contact us today to discuss your car financing requirements.