Budget Tips for Retirees: How a Savings Account Can Make Car Buying a Breeze
If you’re a retiree or nearing retirement, it’s important to think about how you’ll budget for major purchases like a new vehicle. Setting money aside in a savings account each month can add up quickly and provide the funds you need for a down payment on a new or used car. These tips can help you save and budget for a car without putting a strain on your wallet:
Do Your Research
If you have a certain type of vehicle in mind, research its reliability, gas mileage and insurance and maintenance costs. Compare a few makes and models to determine a price range you’re comfortable with. If you already own a vehicle, make sure to find out its trade-in value. That way, you can calculate an estimated down payment and loan amount. Clark County Credit Union offers auto loans with low rates and flexible terms, and our Members Auto specialists can help you avoid the stress of a dealership and find the car of your dreams at an affordable price.
Consider Buying Used
The average cost of a new car is about $30,000 in the U.S., which is pretty steep considering a vehicle’s value depreciates the minute you drive it off the lot. With a used car, not only will your loan payments and insurance be lower, but you may also be able to save enough to pay cash and avoid monthly payments altogether. New cars may come with all kinds of bells and whistles these days, but buying used can impact your budget significantly less and allow you to put that extra money toward home improvements or doing something you love, like traveling. Modern cars are extremely long-lasting, and a reliable used car may work through your retirement.
Set Up a Savings Account
Once you decide how much you can spend, it’s time to find a home for your car savings. Set up a separate savings account so you aren’t tempted to dip into the funds for other purposes. Choose an amount for regular contributions – setting up automatic transfers from your checking account each month takes minimal effort and makes saving a breeze. Certificates of Deposit (CDs) are a good savings tool if you already have some cash on hand and aren’t planning on buying a car for a while. CCCU has recently raised deposit rates – check out our rate sheet!
Protect Your Financial Future
Whether you’re still saving for retirement or ready to make your next big purchase, our experienced financial professionals at Clark County Credit Union can help you protect your financial future and find a savings account that meets your needs. Contact us today at 702-228-2228.