Buying a new car doesn’t come cheap. Costs can easily run into the thousands, money that many of us simply do not have hanging around. 

This means that for the vast majority of people, saving up to buy a new car is essential. Paying cash could also help to put you in a better bargaining position. If you are already struggling to make ends meet, here are some things that you can do to help you to put some money aside to fund your new car.

1. Separate your spending into ‘needs’ and ‘wants’

Take a close look at your weekly (or monthly) spending and note where your biggest costs occur.

If you do not already keep some kind of log of how much you spend and on what, now is the time to start. One of the easiest ways to do this is with a spreadsheet as you can quickly see at a glance exactly what you are spending and where.  

Now, highlight essential spending in one color and non-essential spending in another. If you are unsure about what is essential spending and what isn’t, think about whether you actually need to spend that money. Grocery shopping and car insurance, for example, are both essential. You need food to live and it is illegal to drive without some form of car insurance. Going to the cinema on a Saturday night, is not.

For everything you’ve marked as ‘non-essential', consider if you could cut back your spending on these things for the next few months and put the money you’ve saved towards your car fund. 

2. Are you paying more than you need to on your utility bills?

Check that you are on the best deal for your gas and electricity. Comparison sites such as are a quick and easy way to do this.

3. Haggle your internet deal

Equally, if you are at the end of your broadband/phone/TV contract, call your provider to see if they can do you a better deal. Knowledge is power. Research what other providers are offering before you make the call and ask if they can match it.

4. Take a closer look at your car insurance

Take a look at your current car insurance. Have you just let it roll over? Load up comparison sites such as to see if you can find a better deal. Same thing with your house insurance.

Put any money you save towards the cost of your new car. 

5. Head to a car boot sale to raise some cash

Many of us have lots of ‘stuff’ in our homes that we no longer use. 

A car boot sale is a great way to make some extra cash and de-clutter at the same time. 

6. Meat-free meals

A great way to cut costs on your weekly shop is to decrease the amount of meat that you eat. Not only could this benefit your bank balance, it’s also good for your health, too. 

There are many free vegetarian recipes online. There are also plenty of budget meal plans (either with or without meat) available to download for free on the internet. 

7. Ditch the takeaway for a homemade treat

After a hard week at work, there’s nothing nicer than putting your feet up in front of the TV with a takeaway. However, this can be costly.

There are big savings to be made by cooking your favorite takeaway treats yourself, instead. 

8. Consider taking out finance to pay for your new car

If you do not have time to save for a new car but urgently need to buy one, you could consider taking out a loan to cover the costs.

Make sure that you do your research and understand exactly how much you will be required to pay back and over what time period. It is important to never borrow more than you can comfortably afford to repay. 

If you don’t know your APR from your FCA, short-term credit broker has many free online guides designed to help confused borrowers.

Making some simple changes could help you to save for your new car

By studying your spending and making small changes to your spending habits, you could find that you may be able to put more money aside each month than you previously thought.

Saving for a new car may require some sacrifices along the way. But do your research and make every penny count and your new car could be sitting outside your home in no time at all.