Shall I pay £20k off mortgage or buy a car?

chopper2540

Hi, just a quickie. I have just inherited £20k. I need a new car as my first child is on the way looking to spend £12k. However Im due to remortgage Nov next year.
Am I better to get a loan at 6.9% to buy the car and use the £20k to try and get a better mortgage rate? or
Am I better to buy the car outright?

Thanks

Thrugelmir

Provide some financial details and we will be able to pass comment.

Credit-Crunched

Why spend 12k, you can pick up some reliable family cars for much less than that. I would not look at taking out a 12k loan for a massively depreciating asset just before child birth! You will need all the money you can get. I would look at utilising 6-8k for a car and putting the rest of it in a tax efficient savings (term or non term) account and re-assess your options at remortgage time

pinky2681

i agree do not buy a brand new car, as soon as you drive it away it will loose value, look at buying a second hand one or one slightly older than you wanted then use to the rest to pay off your mortgage

flutterby_lil

Get a cheaper car and pay the rest off mortgage!

Fon

2008 ford focus, 24K thousand miles, went through the auction last week for 4.5K!

Cars are worth nothing now, get yourself a nearly new cheapy and dont let that money burn a hole in your pocket!

Fon

dimbo61

You have given very little info about yourself ,income, mortgage , LTV or family situation!
Now as someone with a boring MPV from the largest maker of MPV,s citroen I have a cheao motor which can carry all the stuff you need for a child and room for 4 adults and baby seat.
If you do lots of miles then a diesel but the petrol will be cheaper if you do low miles.
£10/12K off your mortgage could get you a much better deal when you remortgage !