How to save for a car in Ireland

Buying a car is a major financial decision, but saving for one can be more achievable than many people think. For many people, the best way to save for a car is to set an honest budget, calculate how much you need to save each month and keep those savings separate from everyday spending. Whether you're planning to buy a new or used car, understanding the full cost of ownership, including insurance, tax and maintenance, can help you create a savings plan that works. If you need a car sooner, combining savings with a car loan may also be an option, allowing you to spread the cost while getting on the road earlier.

In this guide, we'll explain how to start saving for a car, how much you may need, practical ways to build your savings faster and when car finance could play a role in helping you get behind the wheel sooner.

How to start saving for a car

The best way to start saving for a car is to work backwards from your target purchase. Decide what type of car you'd like, estimate the total cost and then break that figure into manageable monthly savings goals.

For example, if you're aiming to buy a car costing €15,000 in three years' time, you would need to save approximately €417 per month. Starting with a clear target helps make your goal feel more realistic and easier to track. Before deciding on your budget, it can help to read our guide on how much you should spend on a car: new vs used.

Deciding how much you can realistically afford

One of the biggest mistakes people make is focusing only on the purchase price. The true cost of owning a car can include:

• Insurance
• Motor tax
• Fuel or charging costs
• Regular servicing and maintenance
• NCT testing
• Unexpected repairs

According to Carzone’s 2026 motoring report, Irish car owners spend an average of €224.40 per month on running costs, with insurance cited as their leading financial concern. When setting your savings goal, think about the full cost of ownership rather than just the amount needed to buy the vehicle. This is particularly important for families, where a larger car may come with higher ongoing costs.

What are the best tips on saving money for a car?

The best tips for saving money for a car include keeping your car fund separate, automating monthly savings, compare new and used options, and review whether saving or financing best fits your budget. The steps below explain how to put this into practice.

Set up a dedicated car savings fund

Keeping your car savings separate from your everyday spending account can make it easier to stay on track. A dedicated savings account helps you:

• See your progress more clearly
• Reduce the temptation to spend the money elsewhere
• Build momentum towards your goal

Many people find that giving the account a name such as "New Family Car" or "Car Fund" makes the goal feel more tangible. Even small automatic contributions can add up quickly when they are consistent.

Make saving automatic

One of the simplest ways to save for a car is to remove the need to think about it. Setting up an automatic transfer shortly after payday means your savings become part of your monthly routine. This approach often works better than saving whatever is left over at the end of the month.

Consider if you should buy a new or used car

Your decision will affect how much you need to save and how long it may take to reach your goal.

A new car may offer:

• The latest technology
• Manufacturer warranties
• Lower maintenance requirements initially

For more information on buying a used car, visit out new car buying guide.

A used car may offer:

• Lower purchase costs
• Slower depreciation
• More value for your money

Many Irish motorists find that a quality used car strikes a good balance between affordability and reliability. If you are interested in this route, feel free to check out our tips for buying a used car. If you're deciding between fuel types, our guide to electric, petrol and diesel cars in Ireland can help you compare the options.

Review the trade-off between saving and financing

Saving for a car gives you more flexibility and may reduce the amount you need to borrow. However, depending on your circumstances, you may not need to save the full purchase price before buying. Some people choose to build a deposit through savings and then finance the remaining balance.

For example, you might save €5,000 towards a €15,000 car and use a car loan to cover the difference. This could allow you to purchase the car sooner while spreading the cost through fixed repayments.

If you're considering this route, it's important to understand your options and repayment commitments before deciding. To get a better idea of this, why not read our guide to getting a car loan or common car loan questions answered blogs. For those who decide that finance suits their needs, you can also learn more about how an Avant Money Car Loan can help.

Track your progress and review your plan

Saving for a car is rarely a "set and forget" exercise. Review your progress every few months and ask yourself:

• Is my target still realistic?
• Have car prices changed?
• Can I increase my monthly contribution?
• Has my preferred type of vehicle changed?

Small adjustments along the way can help keep your plan aligned with your goals. The more engaged you stay with your savings journey, the easier it becomes to maintain momentum.

What if you need a car sooner?

Life doesn't always follow a financial plan. A growing family, a longer commute or replacing an older vehicle can sometimes bring forward the need for a new car.

If that happens, don't feel that your only option is to abandon your plans for a new car. An Avant Money Car Loan may be able to provide the exact flexibility that you need while allowing you to manage costs over time.

The right approach will depend on your circumstances, your budget and how quickly you need the vehicle.

* Rates and loan terms are correct as of 1st August 2026 and are subject to change. Maximum APR (Annual Percentage Rate) is 19.9%. Minimum loan term is 12 months, and maximum term is 120 months, loan terms vary depending on the purpose of the loan, terms greater than 84 months up to a maximum of 120 months are only available for refinance and home improvement loans of €20,000 to €75,000. Avant Money loans are only available to customers over the age of 18 and resident of Republic of Ireland. Lending Criteria, Terms and Conditions apply.

Representative example: On a €30,000 loan over 5 years, at a fixed rate of 5.9% (6.1% APR) you will pay €578.59 a month. The total cost of credit would be €4,715.41 and the total amount repayable would be €34,715.41.

Bankinter S.A., trading as Avant Money, is authorised by the Banco de España in Spain and is regulated by the Central Bank of Ireland for consumer protection rules.