Additional Mortgage borrowing vs Car financing loan

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My 14 year old car is on its death bed, its done 188K miles.
I have my eyes on a car around 40k
My options
1. use up all my easily liquidatable savings and skimp for another couple of months and buy the car outright
2. Hire purchase/Car finance with high street banks - APR of 6.7% over 5 years(most rates are higher!). I prefer to own have my own car rather than PCP.
3. Borrow more on the mortgage, roughly the above amount repaid over 5-6 year. Hoping to get a rate of 2.19-2.99% (with additional borrowing the LTV would come up to 75%).
Other than mortgages the only other credit is, a loan (again for another car) - which will be paid off in 6 months. I might actually pay this off, if I go with Option 2 or 3.
Not sure which option would be best.
I have my eyes on a car around 40k
My options
1. use up all my easily liquidatable savings and skimp for another couple of months and buy the car outright
2. Hire purchase/Car finance with high street banks - APR of 6.7% over 5 years(most rates are higher!). I prefer to own have my own car rather than PCP.
3. Borrow more on the mortgage, roughly the above amount repaid over 5-6 year. Hoping to get a rate of 2.19-2.99% (with additional borrowing the LTV would come up to 75%).
Other than mortgages the only other credit is, a loan (again for another car) - which will be paid off in 6 months. I might actually pay this off, if I go with Option 2 or 3.
Not sure which option would be best.
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System 1 - 14 x 250W SunModule SW + Enphase ME215 microinverters (July 2015)
System 2 - 20 x 330W Jinko Panels + Enphase IQ7+ microinverters (Jan 2022) + Givenergy AC Coupled inverter + 2 * 8.2KWh Battery (May 2022) + Mitsubishi 7.1 KW and 2* Daikin 2.5 KW A2A Heat Pump
System 1 - 14 x 250W SunModule SW + Enphase ME215 microinverters (July 2015)
System 2 - 20 x 330W Jinko Panels + Enphase IQ7+ microinverters (Jan 2022) + Givenergy AC Coupled inverter + 2 * 8.2KWh Battery (May 2022) + Mitsubishi 7.1 KW and 2* Daikin 2.5 KW A2A Heat Pump
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Plus if it's new you will. Loose value straight away.
Actual mortgage stating amount £75,150
Overpayment start date 1/3/23.
Starting balance £66,565.45
Current balance -£65,553.80
As above, why does it need to be a £40k car? Either wait until you can comfortably afford it, or buy a cheaper car. Unless you really hate money or have substantial savings, paying such large sums of money for cars is a sure fire way to reduce your wealth....
As you have another car on finance, is there an option to run just the one car, or is two cars a necessity?
Also HP finance is the same as PCP in that you don't own the car until the final payment. The only difference is one has a larger final payment and the other doesn't.
After that, the least damaging option is to use your savings, as long as there is enough left over for a good (3months of expenses) emergency fund.
We do need two cars unfortunately, even though I cycle to work once a week (20 mile round trip).
My only reason for thinking about adding more to the mortgage was due to the cheap rate of borrowing for 5-6 years.
Time to sit on it for a while
System 1 - 14 x 250W SunModule SW + Enphase ME215 microinverters (July 2015)
System 2 - 20 x 330W Jinko Panels + Enphase IQ7+ microinverters (Jan 2022) + Givenergy AC Coupled inverter + 2 * 8.2KWh Battery (May 2022) + Mitsubishi 7.1 KW and 2* Daikin 2.5 KW A2A Heat Pump
That's a lot to be spending on a car. Keep the £40k in s savings account and borrow the rest on a loan (2.8% if you have good credit).
It's still spending £40k on a car, and now you're just introducing additional and avoidable costs in the form of interest.
You'll be lucky to see more than 0.5% interest from a savings account.
That said, if you can't afford a £40k car, then drop your budget a bit. You can get plenty of nice cars for half of that, and it sounds like you're only using it for 4x 20 mile round trips a week.
Jan = £715 / £1,000 Feb = £1,275 Mar = £400 (fallen behind will make up in April)
Apr = £ May = £ Jun = £
Oct = £ Nov = £ Dec = £
Can I do the purchase for 35,000 on my Credit card and do a balance transfer?
System 1 - 14 x 250W SunModule SW + Enphase ME215 microinverters (July 2015)
System 2 - 20 x 330W Jinko Panels + Enphase IQ7+ microinverters (Jan 2022) + Givenergy AC Coupled inverter + 2 * 8.2KWh Battery (May 2022) + Mitsubishi 7.1 KW and 2* Daikin 2.5 KW A2A Heat Pump