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Consider buying a used car instead of a new one – the lower cost and slower depreciation can add up to thousands of dollars in savings
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New cars actually depreciate by $2000-3000 the minute they are driven off the lot. Once used, though, they depreciate much more slowly. In addition, used cars are generally 20-30% cheaper than new ones. The best bet is to buy a car that is 2-5 years old, since its value will depreciate much less than a new one, but it is still new enough to be (hopefully) in good condition and with a warranty often still in place. If buying from a dealer, see if you can get an extended or manufacturer-certified warranty. If buying from an individual, have a mechanic check it out before you hand over your cash. One more bonus? Since used cars are more affordable, you may be able to get the “dream car” you love but that you cannot afford new.