How to Save for a Down Payment on a Car in Ontario With Ease

Down payments aren’t mandatory for buying a car but they do help a great deal. We recommend anyone applying for an auto loan put down at least 10-20% of the value as a down payment. But how do you save for a down payment on a car in Ontario? We asked our auto loans team to come up with some innovative ways to help save for a down payment on a car.

1. Set a Savings Target

Before you actually save for a down payment on a car, set the target you want, or need, to achieve. Knowing how much you need to save is an effective psychological tool to help achieve goals.

Saving is very goal-oriented. We save to achieve a certain number. Whether that’s for a down payment, retirement, college, or something else. That makes setting a target a powerful motivator. Click here to figure out how much you should budget for your next car.

2. Use Savings Buckets

Some savings apps use actual buckets but if you don’t use such an app, you can make virtual buckets using a budget or savings spreadsheet to save money for a down payment on a car. A savings bucket is just an allocation of savings. For example, if you save $200 per month, you can allocate $100 for a down payment and $100 for an emergency fund or something else.

As long as you track the amounts while you save, you always know how much you have in which bucket, virtual or otherwise.

3. Sell Your Old Stuff

Having a clearout and selling anything with value online is a quick and easy way to make a little extra money. Not only do you help someone out, you clear out space in your home and make some money.

Nobody is going to get rich selling stuff online but there is an opportunity to make a few hundred dollars selling items you no longer need or use.

4. Turn a Hobby Into a Side Job

Good with languages? Are you a programmer or developer? Have a skill that’s in demand? Why not teach it online? Portals such as Teachable enable anyone with quantifiable skills to set up as a tutor or teacher and share their knowledge.

Not only is it interesting, you’re also investing in future generations and helping people improve their personal circumstances. All while earning a little money at the same time!

5. Create Online Courses

In a similar vein, creating online courses for sites like Udemy can also help you train others. Creating online courses does take time and effort but you can resell the same course an infinite number of times without doing anything.

As long as you’ll have time to answer questions, mark any tests, and provide feedback to people who buy your course, you could make valuable extra income this way to save for a down payment on a car.

6. Use Coupons for Purchases

Couponing is a hobby for some and a passion for others but we could all get in on the action and save a little money. There are lots of voucher websites out there that can offer serious discounts.

Make sure to only use the vouchers on purchases you would have made anyway and allocate all savings to your down payment and you could achieve your savings target a little faster.

When you’re ready for a car lease or loan, get in touch with the auto loan experts at Northway Ford for great deals on auto finance and more tips on how to save for a down payment on your next car.

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