When it comes to saving money, little things add up, but big things add up more!

Earlier this year, we came across an alarming statistic – 47% of Americans at every income level don’t have $400 in savings to deal with life’s emergencies. When you’re out of favors and you don’t have credit, it can be the tipping point to poverty. We decided to tackle this issue and started a campaign called Crave 2 Save earlier this year. Our goal is to help people at every income level save today for a better tomorrow.

If you’re looking for ways to save, consider this before purchasing your next vehicle.

Battling big car payments

Being cognizant of the little things we spend money on can go a long way toward developing healthy savings habits. If it’s true that the little things add up, there’s no denying big things add up more. One of the biggest things we spend money on is cars. According to data from the Federal Reserve, between the first quarter of 2016 and the first quarter of 2017, car buyers took out $96 billion worth of auto loans, $13 billion more than the total amount of student loan debt borrowed during the same time frame. People are buying more expensive new cars and lengthening the finance terms.

There’s nothing wrong with purchasing a new car if you have plenty of disposable income to cover the additional expense. If you can’t afford to save money, you probably can’t afford a new car. The good news is that there are a lot of affordable and reliable car options that won’t drain your bank account.

Think about purchasing a preowned vehicle

New cars can depreciate as much as 19% in its first year. If your monthly loan payment isn’t high enough to compensate for depreciation, you could end up owing more than the vehicle is worth. Buying preowned is an opportunity to get more for less:

  • You can get features you might otherwise not be able to afford (i.e. leather seats, navigation and safety features).
  • A lower value vehicle will help you save on sales tax and insurance premiums.
  • If you’re financing, you’ll probably save in total interest payments, as the loan amount that you’re paying interest on will be lower, even if the rate is a bit higher.

Get more mileage out of your free and clear vehicle

There’s nothing quite like the pleasure of not having a car payment. If you don’t have a car payment and your older vehicle is running without too many mechanical problems, why not keep it a while longer? There are low-cost things you can do to make an old car feel new:

  • Have you car detailed to look, smell and feel newer.
  • Purchase new floor mats.
  • You don’t have to spend $40,000 on a new car to enjoy navigation, back-up cameras or a media hub. There are plenty of after-market manufacturers that can help you add these features to your older vehicle. Stop by a local car stereo shop to see what’s possible.

Are you ready to start saving today for a better tomorrow? Visit www.traviscu.org/crave2save, stop by a local branch or call our Member Service Center at (800) 877-8328.

Crave 2 Save