Saving for a Car

[QurazyQuisp]

So, come April/May I'm going to be purchasing a car... My first car. I've been driving one of my parents cards up until now. (from when I got my drivers license when I was 16, and I'm 19 now) My younger sister is about to get her license, so the car goes to her. I don't really need a car during school, that's why I'm waiting until the summer.

I have about 4k saved for the car as of right now, my parents are going to double what ever I have for my first car. (up to 4k, so 8k total for a car)

Where should I put this money until then? Currently it's sitting in my savings account, but I'm wondering if there is somewhere I can put it to get a higher yield, like a money market account...

 

[Demo24]

I put mine in a money market. Easier to get out should you need it.

 

[doze]

I can't imagine that putting your money for 4 months anywhere will do much good.

What kind of car(s) are you looking at?

 

[QurazyQuisp]

Originally posted by: DEMO24
I put mine in a money market. Easier to get out should you need it.

With which company/bank?

 

[jfall]

4k invested safely over a short period of time won't give you much of a yield at all

 

[QurazyQuisp]

Originally posted by: jfall
4k invested safely over a short period of time won't give you much of a yield at all

I'm not looking for anything huge, I figure I should at least attempt to make some money off of it while it's around.

 

[QurazyQuisp]

Originally posted by: doze
I can't imagine that putting your money for 4 months anywhere will do much good.

What kind of car(s) are you looking at?

I'm most likely going to be buying a 1999.5 to 2005 Jetta or GTI

 

[jfall]

Originally posted by: QurazyQuisp

Originally posted by: jfall
4k invested safely over a short period of time won't give you much of a yield at all

I'm not looking for anything huge, I figure I should at least attempt to make some money off of it while it's around.

Maybe ING direct then?

 

[GTaudiophile]

I have my "car savings" account at USAA, earning about 5.25% annual interest. I feed that account with $333 per month. The idea is to save $30,000 within 5-7 years. I use that to buy a new car.

 

[QurazyQuisp]

Originally posted by: jfall

Originally posted by: QurazyQuisp

Originally posted by: jfall
4k invested safely over a short period of time won't give you much of a yield at all

I'm not looking for anything huge, I figure I should at least attempt to make some money off of it while it's around.

Maybe ING direct then?

The interest is paid out monthly correct?

 

[BD231]

The only way you could make anything worth even considering on your 4k is through a personal loan or buying something in bulk and doing a 50 to 100% markup on e-bay.

Tack on 10 to 20% on the loan (depends on how much you like the person) and you can make a little something. You really have to know people to pull this off safely though.

Turning straight currency into more currency is not that easy. Generally just not worth your time unless it's a true commitment with tangible gains big enough to put a smile on your face.

My best advice, keep it where it's at and get a 2nd job.