4 ways to save money for a brand new car

A car means different things to different people. For some it may be a convenient way to commute, for some it may be a status symbol. Others may view it as a comfortable way to take the family out to dinner or a weekend getaway, and for a few it may be a passion.

This brings us to the big question: How to save for a car?

1) Budget: it is very important to ascertain your income and consequent expenditure. Buying a car is an important financial decision and requires careful planning. Some people can afford to avoid a loan by planning their savings intelligently.

2) Down payment: deciding on the amount of the down payment is very important. Once you have ascertained the price of the car aim to put down atleast 20% for a new car and 10% for a new one, though if you have saved enough money via a Savings Account, you may be able to make a larger down payment, or buy the vehicle outright.

3) Car related expenses: the cost of a car is not limited to its immediate price tag, zeroing in on the right car is extremely necessary. It has to satisfy the need for utility as well as comfort and budget. Pre-owned cars also enjoy as much popularity as their new counterparts. Mileage, the cost of the type of fuel used - petrol, diesel or CNG, the car insurance rates, all need to be taken into consideration.

4) Setting up a dependable financial plan: Since the monthly payments will be a necessary part of your financial planning of how to buy a car, it is essential to establish a sturdy financial account which will help in the long term planning. Savings Account are a very reliable way to do that. you can have a separate Savings Account,when planning to save for a car, so that you are not tempted to dip into funds that are meant for other expenses.

HDFC Bank Savings Account is a very good option. The account opening process is hassle free and instant. Interest rates offer good returns. Liquidity of your fund is ensured and transactions can be done cashless through the Netbanking and Debitcard/ATM facility. There are several cross products benefits available and the interest rates offered helps your idle money to grow as well.

Click here to begin the Savings Account opening process for your new InstaAccount.

Looking to save for your dream home? Here’s how a Savings Account can help you!

*Terms and conditions apply. Loan at the sole discretion of HDFC Bank limited. Loan disbursal is subject to documentation and verification as per Banks requirement