Loans

emerald122

Hi All

Can anyone help me. I want to but a new or used car and have a budget of 12,000 in mind.

I have 7,000 in savings and not sure whether to take out a full loan for 12,000 at a low APR 5.1% over ?5yrs and let my savings grow and repay after 3yrs as i would of gained some interest. Or if better to put a deposit of 7,000 down and only take out a loan for 5,000 over?2-3 yrs

can anyone advise

emerald122 x:beer:

gb12345

emerald122 wrote: »

Hi All

Can anyone help me. I want to but a new or used car and have a budget of 12,000 in mind.

I have 7,000 in savings and not sure whether to take out a full loan for 12,000 at a low APR 5.1% over ?5yrs and let my savings grow and repay after 3yrs as i would of gained some interest. Or if better to put a deposit of 7,000 down and only take out a loan for 5,000 over?2-3 yrs

can anyone advise

emerald122 x:beer:

There is little point in keeping savings at a low interest rate and then borrowing at a higher interest rate EXCEPT that it would be a good idea to keep some savings for emergencies.

R_P_W

It would cost you less to use as much of your savings as possible, however how long will it take you to rebuild your savings AND pay the loan?

Why don't you revise your budget downwards and not have to borrow anything at all?

Ilona

Why have you got a budget of £12,000? If you had a budget of £7,000 you could go out and buy a car tomorrow. No interest to pay, just start saving up again.
Ilona