We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
To use loan or savings?
Hi
I need to buy a new (used!) car. My current one is about to give up the ghost and I need it travel to work every day. I have savings in the bank intended to use for a deposit on a flat/house. Asside from my rent, I have no debts.
Should I use some of my savings to buy a car or should I leave it in the bank and take out a car loan? If I use the savings it'll take me a long time to build it back up to the current level and if I see somewhere I like I wont have enough for a deposit - but I'll be debt free. or do I take out a loan, keep my savings for a deposit but owe the bank for my car?
Suggestions welcome!
I need to buy a new (used!) car. My current one is about to give up the ghost and I need it travel to work every day. I have savings in the bank intended to use for a deposit on a flat/house. Asside from my rent, I have no debts.
Should I use some of my savings to buy a car or should I leave it in the bank and take out a car loan? If I use the savings it'll take me a long time to build it back up to the current level and if I see somewhere I like I wont have enough for a deposit - but I'll be debt free. or do I take out a loan, keep my savings for a deposit but owe the bank for my car?
Suggestions welcome!
0
Comments
-
What is your savings rate (3% ?) and what price would a debt be ( 8% ?)
Go with the cheapest, and then put the monthly cost back to your savings...0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.2K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247.1K Work, Benefits & Business
- 603.8K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards