Saving up for a car can feel like a big task, but it doesn't have to be complicated.

If you're in Utah and thinking about your next car purchase, having a plan can make the process easier and less stressful. If you’re looking to pay for a car outright or preparing for your first car loan, this guide will help you align your personal finance habits with your long-term financial goals.

Let’s start by figuring out what kind of car fits your lifestyle and budget.

Define What Kind of Car You Want

Before you can start saving, you need to know what you're saving for.

Think about your daily needs. Do you want a fuel-efficient commuter car to get around Salt Lake City? Something with all-wheel drive that can handle snowy roads in Logan or Park City? Maybe you’re looking for a reliable used car that gets great gas mileage and is easy to maintain. Whatever you have in mind, the clearer your vision is, the easier it will be to set a realistic savings goal.

You’ll also want to decide if you’re going for a new car or a used one. New cars usually come with warranties and the latest features, but they cost more upfront. Used cars cost less but might require more maintenance. In Utah, used cars tend to hold their value well, especially models known for durability. If you're buying from a local dealership, you can often find good certified pre-owned options that still give you peace of mind.

Make a short list of cars that match your needs and start looking up prices online. Focus on what the car typically costs in Utah, since local demand and availability can affect prices. Getting a rough estimate now will help guide everything else you do.

Calculate the Total Cost of Ownership in Utah

It’s easy to focus only on the sticker price, but that’s just part of the picture.

When you’re saving up for a car in Utah, you also need to think about everything else that comes with owning one. This includes taxes, insurance, registration, fuel, maintenance, and sometimes even emissions testing, depending on where you live.

Understand Utah’s Sales Tax and Registration Fees

Start with the basics. In Utah, the state sales tax on vehicles is 4.85 percent, but depending on your county, you might see additional local tax rates. Registration fees vary based on the age and weight of the vehicle, and they typically range from $44 to $150 each year.

Some counties, like Salt Lake and Davis, may also require emissions or safety inspections annually. These can add an extra $20 to $50 to your total cost each year.

Research Auto Insurance Costs in Your Area

Utah requires minimum auto insurance coverage, and your premium will depend on several factors like your age, driving record, and where you live. Urban areas like West Valley or Ogden tend to have slightly higher rates.

If you're planning to buy a newer or more expensive car, expect your insurance premiums to be higher. On the flip side, a reliable used car like a Toyota Axio with strong safety features might come with lower rates.

Factor in Fuel and Ongoing Maintenance

Gas prices in Utah usually sit a bit below the national average, but they can still put a dent in your budget if you’re driving long distances. Check the fuel economy of the car you're considering and estimate how much you'll spend each month based on your driving habits.

Routine maintenance is another key part of the picture. Oil changes, tire rotations, and brake checks should all be budgeted for, along with an emergency fund for unexpected repairs.

Set a Specific Savings Goal and Timeline

Now that you know what kind of car you want and how much it will really cost, it's time to get specific about your savings plan.

Being clear with your goal and how long you want to save for makes a big difference. It turns a vague idea into a plan you can actually follow.

Add Up the Full Cost of the Car

Include the car’s purchase price, taxes, registration, estimated insurance rates, and a buffer for maintenance. If you’re buying the car outright, your savings goal will be higher than if you plan to finance and just make a down payment.

Even if you’re financing part of the purchase, having a strong down payment will lower your monthly payments and interest over time.

Break It Down Into Monthly or Weekly Targets

Divide your total goal by your timeframe. For example, to save $8,000 in 12 months, you’ll need to save around $667 per month. Adjust your monthly expenses and look at your monthly income to make sure this is realistic.

If that seems too steep, you can stretch the timeline or look at ways to boost your savings (we’ll cover that in the next section).

Use the SMART Goal Framework

To keep yourself on track, use the SMART goal method. Make sure your goal is:

• Specific: “Save $6,000 for a used car”
• Measurable: “Put away $500 per month”
• Achievable: Based on your current income and budget
• Relevant: Tied to your need for transportation
• Time-bound: “Reach goal by next July”

This turns your savings goal into a plan with real steps you can follow and measure.

Build a Dedicated Car Savings Plan

Once your savings goal is set, the next step is to create a system that helps you stick with it.

Having a dedicated place for your car fund and a clear plan for how you’ll add to it makes saving feel a lot more doable.

Open a Separate Savings Account

The easiest way to keep your car savings organized is to open a separate account just for that purpose. This keeps the money out of your everyday spending account and makes it easier to track your progress.

Look for a high-yield savings account, either online or through a Utah-based credit union. Many local banks offer special savings options with no fees and solid interest rates that can help your money grow a little faster.

Automate Your Deposits

Set up automatic transfers from your checking account to your car savings account. You can time these to happen right after payday so you’re paying yourself first. Even small amounts add up quickly when they happen consistently.

For example, moving just $50 a week automatically can turn into over $2,600 in one year without any extra effort.

Use Windfalls to Boost Your Fund

Put part of your tax refund, bonus, or credit card rewards toward your car fund. This can help you hit your savings target ahead of schedule. If you’re trading in your current vehicle, estimate your trade-in value now and subtract it from your savings goal.

A lot of people in Utah also receive annual dividends or profit-sharing at work, especially in larger industries like tech, healthcare, and education. Consider using part of that money to grow your car fund faster.

Cut Costs and Boost Income

Sometimes the fastest way to reach your car savings goal is by freeing up more money or earning a little extra on the side.

You don’t need to completely change your lifestyle. A few small adjustments can go a long way.

Trim Everyday Spending

Start by looking at your monthly budget and asking what you can live without for a while. Cutting back on things like streaming services, takeout meals, or unused subscriptions can free up more than you think.

Even skipping one $5 coffee or snack per day could save you around $150 a month. That’s nearly $1,800 in a year.

If you're in Utah, look for free or low-cost activities. Hiking, local events, and free community resources can help you save money while still having fun.

Take Advantage of Local Discounts

Many Utah-based businesses offer student discounts, loyalty rewards, or local promotions. Saving on groceries, transportation, or even gym memberships can help you redirect that money into your car fund.

Check with your employer too. Some companies offer transportation reimbursements or wellness bonuses that can be saved toward your car.

Find a Simple Way to Earn Extra Income

If cutting expenses isn’t enough, adding a little extra income can help you reach your goal faster. You don’t need to pick up a second job. Just a few hours a week can make a difference.

Some ideas that work well in Utah include:

• Selling handmade crafts or baked goods at local markets
• Offering yard work, snow removal, or dog-walking in your neighborhood
• Picking up gig work like food delivery or rideshare driving

If you can make an extra $200 a month and put it straight into your car fund, that’s $2,400 in one year. It adds up fast when you stay consistent.

Your Utah Car Journey Begins at Axio Automotive

 

Once you’ve hit your goal, your next step is choosing the right vehicle. If you’re ready to explore reliable, budget-friendly options, we invite you to shop our inventory with Axio Automotive, your trusted used car dealership. We proudly serve drivers in Boise, Sandy, Orem, Ogden, and beyond and are here to help you find a car that fits both your lifestyle and your financial goals.