Buying your first car is a huge milestone; and it’s exhilarating if you do it in college. Unfortunately, car prices have shot to the ceiling, making it harder for students to buy cars. The average price for a new car is now $47,077. Despite the high cost of vehicles, it is possible to save for your first car. Here’s how to save for your first car in college.

• Identify the Car You Want

The first step towards owning a car is identifying the kind of car you want. Which model excites you? Are you looking for a new or used car? Think about the benefits and drawbacks of each. New cars are expensive but they don’t need repairs, have a warranty, and are fuel-efficient. Used cars are affordable but they may cost you a lot in repairs and maintenance.

• Make a Budget

A budget helps you know which car you can afford. Also, find out the costs of owning the car and related expenses. These include fuel charges, parking fees, and insurance. Research the car’s prices online by searching for “new cars for sale” or “used cars for sale.” 

Once you know how much money you need, create a savings plan. Note down how much you can set aside per month, how your earnings will cover car expenses, and for how long you’ll save.

• Open a Savings Account

A savings account will make you disciplined. You can deposit money on specific days or whenever you have it. The account motivates you to save because you can see your progress and the deficit. Choose a bank with the best interest rates. This article will help you learn more about choosing the right bank for saving.

• Reduce Your Spending

Planning to buy your first car is easy, the real work is realizing the goal. Saving to finance a car purchase requires discipline, commitment, and sacrifice. Cut your spending and forego trendy clothes, expensive meals, partying, and other luxuries. Buy clothes from thrift shops, kindle books instead of physical books, and eat cheap street food. This article highlights how you can reduce your expenses while in college.

• Increase Your Income Streams

There are many ways to increase your income streams. You can offer tutoring services to junior students or online, take a part-time job, try freelancing, create products and sell them, or sell items you no longer need. The goal is to save as much as possible.

• Explore Car Financing Options

Although a car loan will be hard to get due to existing student loans, you can secure a loan if you have a stable income and a decent credit score. However, you need a down payment and must make monthly payments, so include the two in your budget if you choose this path. 

Buying your first car while in college is not easy, but it's possible. To save for it, identify the vehicle you want and research the retail price and financing options. You also need to set a budget, create a savings plan, open a bank account, and start saving little by little. Saving for a car is not easy, so you’ll need to adjust your expenditure and supplement your current income.