Using Offset to Buy Car

Mr_Who_2

We currently have an offset mortgage which is fully offset. At the moment, for each monthly payment we make, the same amount becomes available in the offset.

Unfortuately, we're not currently in a position to be able to contribute to the offset at the sort of rate we've done in the past.

Both cars' leases are about to come to an end. We've typically taken lease purchase from the dealer (which from reading here, I realise is a knuckle rapping crime<g>).

We pretty much change the cars at the end of the lease, so it always seemed a bit pointless paying out on the full value of the car (from a cashflow perspective).

The question - are we better buying the cars outright by drawing on the offset and then just working to top that back up again?

Mr Who

silvercar

Unfortuately, we're not currently in a position to be able to contribute to the offset at the sort of rate we've done in the past.

If the mortgage is fully offset, there would be no point in topping it up as you get no interest on positive balances.

How these car leasing deals compare with buying and then having to pay for servicing and repais I don't know. But unless a car dealer is offering low finance offers, your mortgage is probably the cheapest way to borrow money.

JoeK_3

If the mortgage is fully offset, there would be no point in topping it up as you get no interest on positive balances.

silvercar wrote: »

How these car leasing deals compare with buying and then having to pay for servicing and repais I don't know. But unless a car dealer is offering low finance offers, your mortgage is probably the cheapest way to borrow money.

This is true but do remember that you will be securing the car debt into your mortgage. If you did that and the business got into difficulties, you could lose the house!

But if you left them out of the equation they would just repossess the cars.

JoeK