Car loan advice

Shansidine

I am trying  to decide wither I am better to buy a used (newish) car using a bank loan or save up for the next 4 years and buy one outright then. I have paid off my current car and it will likely last me the next 4 years so this will give me a chance to save. But with interest rates being so low currently I'm m not sure if its better to take a loan over saving with very little interest added? Any suggestions welcome. 

[Deleted User]

It's far better to save.

Grumpy_chap

Save up.  Then buy what you can afford.

DrEskimo

The loan will still cost you more than you can make on your savings.

No sense it paying to borrow money if you can avoid it. It's just donating your wage to very wealthy finance companies....

Grumpy_chap

It is worse than simply the finance cost.
The current car will last for 4 years, and will be far lower depreciation over the 4 years than the new car.  Double whammy to change now.

DrEskimo

Grumpy_chap said:

It is worse than simply the finance cost.
The current car will last for 4 years, and will be far lower depreciation over the 4 years than the new car.  Double whammy to change now.

Well I sort of associated that with the cost of having a newer potentially nicer car....

Buying with finance is exactly the same as buying with cash. You are just paying more for the same thing.

Shansidine

Thanks will definitely save.