Save for New Car with AI
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Economy Car
Honda Civic, Toyota Corolla
SUV
Honda CR-V, Toyota RAV4
Premium Car
BMW 3 Series, Audi A4
Electric Vehicle
Tesla Model 3, Nissan Leaf
Custom Amount
Enter your own target
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Start saving today
Choose your new car goal above to get started with your personalized savings plan.
✨ People with a structured savings plan are 73% more likely to reach their financial goals
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Car buying guide
How much should you save for a car?
Whether you're paying cash or making a down payment, walking into a dealership with real savings changes everything: lower payments, less interest, better deals.
Start with the 20/4/10 rule
Put at least 20% down, finance for no more than 4 years, and keep all car costs under 10% of your gross income. On a $30,000 car, that means saving at least $6,000 before you buy. If the numbers don't fit, the rule is telling you to pick a cheaper car or save longer — not to stretch the loan.
New vs used: depreciation is the real cost
A new car loses 20–30% of its value in year one and around 50% by year three. That's why a lightly used car is the best value for most buyers — you skip the steepest part of the curve and your savings target drops by thousands.
How the calculator works
Choose a target above — full price or a down payment — then pick your timeline. You'll see exactly what to set aside per day, per week and per month. Save the goal to Dibba and the app tracks progress automatically and keeps you on pace with weekly updates.
Don't forget the extras
Insurance, registration, tires and the first year of maintenance can add 10–15% on top of the sticker price. Build them into your target so the true cost of ownership never catches you off guard.
Frequently asked questions
What is the 20/4/10 rule for buying a car?+−
Put at least 20% down, finance for no more than 4 years, and keep total car costs (payment, insurance, fuel) under 10% of your gross income. It's a simple guardrail that keeps a car from eating your budget.
Should I buy a new or used car?+−
A new car loses roughly 20–30% of its value in the first year and about half by year three. Buying a 2–3 year old car lets someone else pay for that depreciation while you still get a modern, reliable vehicle.
Is it better to pay cash for a car?+−
Cash means no interest, no monthly payment and stronger negotiating power. Financing can make sense when the rate is very low, but most people save money overall by saving first and borrowing less — or not at all.
How long does it take to save for a car?+−
At $500 per month, a $12,000 used car takes 2 years and a $6,000 down payment takes 1 year. Use the calculator above to see the daily, weekly and monthly plan for your own target.