What's the best way to save for a car? (kbin.earth)

submitted 3 months ago by [email protected] to c/[email protected]

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I'm putting away $300 a month, my question is where to put it. savings account has basically 0 interest, there are HYSA (high yield savings account) that would give me 3-5% apy, or I already have some money in stocks that have grown consistently 25% over the last year (index funds only)

what would you guys recommend? I'm looking to buy it probably 3 years from now. that way either I've got a fat down payment or I can just buy it cash

thanks

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[-] [email protected] 9 points 3 months ago

"New isn't worth it" depends greatly on what you're buying and where you live. The used car market has changed dramatically over the last 4-5 years. Around here at the low end of the market a 2 year old used car with 30kish miles is only ~15% cheaper than the same car brand new. The new car also comes with the full warranty, frequently some level of free regular service & loaners, not to mention no wear and tear. The days of a car losing 25+% of its value for merely being driven off the lot at sale time are long gone.

[-] [email protected] 3 points 3 months ago

Fair point. I got mine 5 years ago so that tracks.

this post was submitted on 24 Feb 2025

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