Apply for loan now or later

gibby9

I've seen a number of loans advertised recently around 3.5 to 3.8%. Though I appreciate that the offered rate may be higher than the advertised.

I am looking into buying a car, probably next year and intend to finance by personal loan. I know its hard to say for certain, but my thought would be that loan rates are unlikley to gwt any lower and more likely increase.

So I think I may be better applying for a loan now and place the money in a savings account to use when ready to purchase a car? Does that sound sensible?

I know roughly how much I would need and have savings available for any difference.

[Deleted User]

No. Leave it until you need it.

andyfromotley

Leave it and save the payments you would make between now and then, thus reducing the amount of loan you will need.

tony08

Wait and put the repayment money aside ( if able)

gibby9

Thanks. It seemed to make sense in my head last night.

I will put the money aside each month now. Suppose if interest rates do go up slightly in next 6 months or so I will be borrowing less if saving money so the interest rate shouldnt make a difference overall.

AndyT678

gibby9 wrote: »

Thanks. It seemed to make sense in my head last night.

I will put the money aside each month now. Suppose if interest rates do go up slightly in next 6 months or so I will be borrowing less if saving money so the interest rate shouldnt make a difference overall.

More importantly you'll know for sure that you can put aside that amount of money each month without leaving yourself short. It doesn't sound like you've been doing that up to now.