How to Save for a Car

Saving for a car is mostly about turning a big number into a simple monthly plan and keeping that money out of your everyday spending.

Use KOHO High Interest Savings

While you’re saving, where you park your money matters.

With KOHO High Interest Savings, you can:

• Earn a high interest rate on your car fund

• Keep your cash flexible and accessible in the app

• Set up automatic contributions so you’re saving without thinking about it

Step 1: Know Your Car Budget

Start by deciding:

• Are you buying new or used?

• Rough price range (for example, $12,000, $20,000, $30,000+)

• How much you want to put down vs. finance (if you’re taking a loan)

Then add:

• Tax and fees

• Registration and potential repairs (for used cars)

This gives you a realistic savings target instead of a vague “someday car.”

Step 2: Set a Timeline and Monthly Goal

Turn that target into a monthly savings number:

1. Choose a time frame (e.g. 2–3 years).

2. Divide your total goal by the number of months.

Example:
If you need $9,000 in 2 years → 24 months → $375 per month.

Step 3: Trim and Redirect Money to Your Car Fund

Look for small changes that free up cash:

• Cut back slightly on subscriptions, takeout, or impulse buys

• Move any bonuses, tax refunds, or side income straight into your car fund

• When you pay off another expense (like a small loan), redirect that payment amount to savings

Every extra dollar gets you closer to the driver’s seat.

Step 4: Keep Your Car Fund Separate

To avoid spending your car savings by accident:

• Keep your car fund in a separate high interest savings account

• Consider nicknaming it something like “Future Car” in the app

• Only move money out when you’re actually ready to buy

Separation = less temptation.