Save or take a Loan

RoxRoxBling

HI :wave: I'm new to the MSE!
Not too sure if this is the right place to post but here goes...

I'm looking for a used car. My question would be whether it'd be better to save the money and buy it with the savings, or take out a loan/finance for the car
Any advice, tips or suggestions welcomed :beer:

Glennn

Ideally saving, that way on don't pay any interest on a loan :j

Tremour-88

If you have a choise save, would you rather save and gain 2-3% interest or take a loan and pay 9-20% interest

FireWyrm

Save...any day of the week and twice in Sundays. Take it from someone who has been in debt for the best part of 15 years on and off. Best laid plans never are and if you really do stick to the "plan", my hat off to you since I've never managed in all the years of trying. All loans and borrowing have always cost me more than I anticipated in the long run. How I wish I'd known about these forums when I was young and stupid.

RoxRoxBling

What if the finance with the car deal was either 0% interest or you get a rebate on the interest, do either of the two sound a good deal, or too good to be true?

pheonixrising21

I think there are some more obvious questions first... when do you want to purchase, how much is the car and can you save that amount in that space of time. If you want a £5000 car now and have £2000 savings, then you need to loan £3000. If you want it in a year's time and can save £3000 in a year, then save.

One thing I would suggest though, don't borrow the full amount if you have savings, unless the loan is 0%!

somethingcorporate

And usually if you get the finance at 0% you are likely getting stitched up on the price of the car.

Always better being a cash buyer IMHO.

Miss_Spendalot_2

RoxRoxBling wrote: »

What if the finance with the car deal was either 0% interest or you get a rebate on the interest.

I doubt you will get a used car on 0% Interest. though there are a few 0% deals going about for new cars though.

I would say save as much as you can for as long you can towards a Vehicle. Being in debt is not a nice place to be so do what you can to (if you do decide to borrow money) accumulate as much cash as you can..

Good Luck.

eschaton

RoxRoxBling wrote: »

HI :wave: I'm new to the MSE!
Not too sure if this is the right place to post but here goes...

I'm looking for a used car. My question would be whether it'd be better to save the money and buy it with the savings, or take out a loan/finance for the car
Any advice, tips or suggestions welcomed :beer:

What age are you? First car or replacement? What value of car are you considering?

poppasmurf_bewdley

RoxRoxBling wrote: »

What if the finance with the car deal was either 0% interest or you get a rebate on the interest, do either of the two sound a good deal, or too good to be true?

Usually 0% finance deals are on new cars only, and even then you'll normally find you're paying full price for the vehicle. Many new cars can be bought with 10-15% off the list price if you have no px.

Don't forget also that with finance the £10k car that you pay back £14k to buy will be worth only £6k in two years time. Put like that makes a finance deal sound VERY expensive.