What is the Best Way to Save Up For a New Car?

What is the Best Way to Save Up For a New Car?

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[FourWheelFinance]

The most important thing here is to not buy something above your means, $15k-$20k Toyota/Lexus Honda/Acura MAX and pay for it in cash. Park it in a High Yield savings account for the time being

[thegardencity]

This might be an unpopular opinion here but if it's car or engagement rings you are saving and you are 100% invested in the market, just get a 0% apr credit card for 18 months and buckle down and pay it off. Being underleveraged allows you to do things like this, use debt to make yourself more money. Same thing happens during a market crash. I'm going ahead and buying on margin up to 20% if the time is right to do so. I'm a proponent of using debt during times when markets are down and you don't want to sell any assets, just like how one might accumulating a larger cash position during times where assets are overvalued

[grod]

I figure a lot can change in a few years so rather keep that money invested. Might not end up buying a car in 3 years but 6 or 7

[bradendavis]

I have emergency fund, but after that everything is in market. I don’t need a car for at least 3 years but I assume when I do then I’ll take it out of my general taxable investment account. Too risky?

[davidhamilton]

What if it’s the same scenario but I’m not buying for 10 years?

[wyattpotter]

I'm 21 and I make about 37k a year now problay a little more than that, and I have like about 31k invested on the first of this month and about a little over 16k and my net worth may be about 50k at the start of next month and I used to make a lot less several months ago and I really want to get like a 8-10k mustang and currently I drive a 1995 Subru Impzla or something with over 238k miles on it that's worth a few hundred dollars at best and I feel really guilty about wanting to get something like that Mustang that I want. Does anyone have any thoughts? If I buy the car I will pay cash for it of course.

[Liam___ohara___]

i agree with everything EXCEPT for that stupid UGa football helmet in the background

[Jack-fwmw]

Why pay in cash if you can get it financed at 0.9%? This isn't rhetorical - this was the rate offered to us last year. Even before Covid, this dealer was known for giving great financing deals. If the dealer has good financing options, paying in cash isn't always the best option.