Do I borrow or use savings?

lynne1307

Hi
not sure if this thread is in the right place moderators please move if need be thanks !.

I need a bit of advice. I've been offered a really good deal, husband is a car sales and has taken a part x. Value 16k, can buy for 11k. My car value 6k so need 5k to make up.

I have the savings, (have 20k saved) I also have 20k overpayed on my mortgage, which I think I can borrow back.
I could also get a loan over 24 months 150 per month, 5% interest.

What do you think the best deal is? or the most sensible option? I have a teenager at uni and am funding savings to pay for his accommodation (5k a year) but am managing to save a little as well to offset this.
any advice appreciated

thanks

Alter_ego

Based on simple maths- pay for it don't borrow.

Ask hubby for a discount as well!

ViolaLass

It's a no-brainer - why would you borrow when you don't need to?

robatwork

Borrowing at 5% or using your savings which are probably making 1%...or less.......?


As violalass says ^^^

atush

Never borrow when you can pay- unless it is 0%

Eco_Miser

Unless your savings are earning over 5%, use them for the car. Further, save an additional £150 per month for the next two years (what you were willing to pay on the loan), to make up the capital you spent and the interest you missed out on.

Yes, pay interest to yourself, because you borrowed from yourself.

mark55man

what ecomiser said+1


keep it simple