Buying a car is exciting and fulfilling. For most people, it’s the culmination of several years of savings and hard work. When you finally succeed and get the car home, everything you did to earn it finally seems worth it. Here are some budgeting tricks and tips to get you to that magical end result.

Cut Unnecessary Expenses

Before you’re ready to get a new or used car, you must first consider all of your expenses. Some things are easy to cut, such as cable or drinking, but other things might take work (like reducing your rent). Here are a few things that might be costing you too much money:

  • Cable – Do you want to watch HBO or drive a new car?
  • Lights – Turn off your lights, turn down your heater, and stop leaving the fridge door open.
  • Eating Out – On average eating out costs four times more than eating at home.
  • Pets – Consider how much your fish tank or ferrets are costing you a month, and then consider giving them to someone more financially stable.
  • Drinking Alcohol – Booze are expensive. Consider how much you could save for your new car if you cut out the alcohol.

Create a monthly budget for yourself showing incoming and outgoing money. Make sure you have enough positive income a month to cover possible car payments, repairs, gasoline, and car insurance (in addition to saving towards the down payment of a car). When you have enough money for all of these things it’s a good idea to proceed down this list.

Check Your Credit

Once a year you are entitled to check your credit for free. Make sure that everything is in order, and dispute any issues you discover. Remember that certain things would lower your score, such as opening or closing credit cards. Here are some other things that hurt your credit score:

  • Getting turned down for credit or loans.
  • Making late payments.
  • Bankruptcies or foreclosures.
  • Defaulting on a loan.
  • Being sent to collections.
  • Having a high debt to credit ratio.
  • Applying for several credit cards at once.
  • Closing credit cards.

There’s no good way to close a credit account. When you do decide to close a credit card, remember that it will hurt your credit for an average of two years, so make sure you time this accordingly for future loan applications.

Talk to a Credit Advisor

Once you have your budget and credit in hand, consult with a credit advisor about getting a car loan. He or she might have great information for you. Credit advisors can help you to receive pre-approved car loans so that there’s no guess work involved in car shopping.

If your budget still needs work, the credit advisor might suggest a second job, reducing your car ambitions (maybe getting a Honda Fit rather than a gorgeous Cadillac), or waiting a few years. However if you’ve done your work and stuck to a budget then you might be ready for a trip to Williamson Cadillac today.

Consider the Next 5 Years of Your Life

When you have your budget and pre-approved loan in place and you’re staring at the car of your dreams, remember that it is a big commitment. Will you still be happy to be paying $350 a month for this vehicle in five years? Will you have a new spouse and perhaps a few children by then? Car buyers must consider all of the ways their lives might change before they take the plunge.

Buying a new car should be fun, but it’s also hard work. Save carefully and plan for a few years, and your down payment will reduce your car payments to a manageable amount.