Where to invest monthly for a car purchase 6 to 9 years away?
Saving for a car purchase years in advance creates a dilemma because high-yield savings accounts may not grow money fast enough over a long time horizon. People want to know what alternative investments can keep money growing higher while safely funding a future vehicle purchase.
What people tried
Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.
- 1Putting money into a high-yield savings account (HYSA)
- 2Using CDs, T-Bills, or money market funds to avoid stock market volatility
- 3Continuing to make payments to yourself after a car is paid off
- 4Taking advantage of low-interest or 0% financing deals instead of liquidating assets
- 5Using a brokerage account for investments further out than 5 years
- 6Locking money with financial organizations offering high APY for fixed periods
In their words
Unedited, grouped by where they were said, most upvoted first within each place, each linked to the thread it came from.
“Assuming this is 6-9 years away what’s something I could invest in monthly to keep my money growing higher than an HYSA could?”source ↗
“Below is my approach to saving for a car purchase. Does it make sense? Is there a better way to do this ?”source ↗